HUL Q2 results: GST cuts weigh on sales, profit up 3.8%

Mumbai: Packaged consumer goods giant Hindustan Unilever Ltd on Thursday reported a muted 1.5% rise in consolidated revenue to ₹16,388 crore for the July-September quarter (Q2FY26).

The company's net profit during the quarter stood at ₹2,694 crore, up 3.8% year-on-year.

HUL, India's largest fast-moving consumer goods company, had flagged in late September that it expected disruptions in sales in the quarter over lower goods and services tax (GST) rates.

While the rate cuts benefitted 40% of HUL's portfolio, its primary sales to distributors and retailers got impacted as they paused new orders to clear inventory and awaited new stocks with revised, lower prices. Consumers also delayed purchases in anticipation of lower prices.

Analysts polled by Bloomberg had estimated HUL’s consolidated revenue at ₹16,204 crore and net profit at ₹2568.6 crore.

HUL shares were up 1.5% at ₹2,630.50 apiece on NSE at about 11.15 am, immediately after the results were announced. The benchmark Nifty 50 index was up 0.71% at 26,052.90 points.

This is the first quarter for HUL, whose brands include Dove soap, Kissan ketchup and Knorr soups, under new CEO Priya Nair.

“We delivered a competitive performance with an underlying sales growth of 2% and an Ebitda [earnings before interest, tax, depreciation, and amortisation] margin of 23.2% in the quarter,” Nair said in a statement.

“The latest GST reforms are a positive step by the government to drive consumption, expected to increase disposable income and improve consumer sentiment. However, the quarter saw a transitory impact as the market adjusted to these changes. We anticipate normal trading conditions starting early November, once prices stabilise, paving the way for a gradual and sustained market recovery,” Nair added.

The FMCG major declared an interim dividend of ₹19 per share.