Hindustan Unilever Limited (HUL) has cautioned that its Q2 FY26 growth will likely be flat to low single digits due to short-term disruptions from recent GST reforms.
The tax changes, effective 22nd September, reduced rates on around 40% of HUL’s portfolio—including soaps, shampoos, toothpaste, hair oils, talcum, nutrition, and foods—from 12–18% to 5%. While the move is expected to boost long-term consumption, distributors and retailers are currently clearing old inventory, delaying orders and dampening sales in September and October.
HUL reaffirmed its commitment to pass on GST benefits to consumers through lower prices and better value. The company expects sales recovery from November, supported by rising incomes and portfolio transformation efforts.