Hindustan Unilever Ltd: Q2 FY'26 Consolidated Business Growth to be Near Flat to Low-Single Digit Due to Transitory Impact of GST Rate Changes

Hindustan Unilever Ltd (HUL) has announced that the consolidated business growth for the quarter ending 30th September 2025 is expected to be near flat to low-single digit. This is due to a one-off, transitory impact caused by the latest GST reforms, which have led to a short-term disruption in sales. Approximately 40% of HUL's portfolio now benefits from a reduced GST rate of 5%, down from the previous rates of 12% or 18%. The company remains committed to passing on the benefits to consumers through competitive pricing and enhanced value. The transitory impact has resulted in a delay in pantry buying by consumers, leading to a short-term impact on sales in September, which is expected to continue into October. The company anticipates recovery starting November as prices stabilise, underpinned by rising disposable incomes and ongoing portfolio transformation actions.