Hindustan Unilever Limited (HUL), a leading consumer goods company in India, has reported a short-term sales impact due to recent GST reforms. The company anticipates this effect to continue through October but expects a recovery starting November as prices stabilize.

GST Rate Changes and Their Impact

HUL announced that approximately 40% of its product portfolio, including items such as toilet soap, toothpaste, shampoo, hair oil, talcum powder, and various food products, now benefit from a reduced GST rate of 5%, down from previous rates of 12% or 18%. This change is part of the government's efforts to drive consumption in the country.

Passing Benefits to Consumers

In line with its commitment to support the government's initiatives, HUL began passing on the GST savings to consumers through competitive pricing and enhanced value across a wide range of products starting September 22. This move is expected to increase disposable income and drive long-term demand across key categories.

Short-Term Disruptions

Despite the positive long-term outlook, HUL is experiencing short-term disruptions in its sales. The company cited several factors contributing to this temporary setback:

1. Disruption at distributors and retailers across channels as they clear existing inventories with old prices.
2. Postponement of ordering by retailers in anticipation of receiving new stocks with updated prices.
3. Lower orders across the overall portfolio as consumers delayed their pantry buying.

Q2 Growth Projections

As a result of these transitory impacts, HUL expects its consolidated business growth for the quarter to be near flat to low single digits. The company emphasized that this is a one-off, temporary effect.

Recovery Outlook

HUL anticipates a recovery starting November, driven by:

• Stabilization of prices
• Rising disposable incomes
• Ongoing portfolio transformation actions

The company remains optimistic about the long-term benefits of the GST reforms, viewing them as a positive step by the government to boost consumption in the country.

Management Changes

In a separate announcement, HUL disclosed that it is seeking approval from the Central Government for the appointment of Ms. Priya Nair as the Managing Director and Chief Executive Officer of the company. Subject to shareholder and Central Government approval, Ms. Nair's appointment is proposed for a five-year term, from August 1 to July 31.

Hindustan Unilever Limited (HUL), a leading fast-moving consumer goods (FMCG) company in India, has scheduled the announcement of its second quarter financial results for the fiscal year 2026 on October 23, 2025. The company's Board of Directors is set to convene to review and approve the unaudited standalone and consolidated financial statements for the quarter ending September 30, 2025.

Key Highlights

• Results Announcement Date: October 23, 2025
• Board Meeting Agenda:
  • Review of Q2 FY26 financial results
  • Consideration of interim dividend proposal
• Earnings Call: Scheduled for the same day to discuss results with investors and analysts
• Trading Window: Closed from September 15, 2025; reopens on October 27, 2025

Stock Performance

HUL's stock has shown mixed performance across different time frames:

The stock reached its 52-week high of Rs 3,030.00 on September 27, 2024. As of the latest trading session, HUL shares were priced at Rs 2,546.60 on the National Stock Exchange (NSE).

Investor Information

The company has announced that an earnings call will be held on October 23, 2025, following the board meeting. This call will provide an opportunity for investors and analysts to engage with the management and discuss the quarterly results in detail.

In compliance with insider trading regulations, HUL has closed the trading window for designated persons from September 15, 2025. The window is scheduled to reopen on October 27, 2025, allowing sufficient time for the market to absorb the quarterly results and any other material information that may be disclosed.

Investors and market participants will be keenly watching HUL's performance in the second quarter, given the company's significant position in the FMCG sector and its role as a bellwether for consumer sentiment in India. The Board's consideration of an interim dividend proposal will also be of particular interest to shareholders.