HUL Q2 Growth Flat as GST Disruptions Hit

• GST rate cuts disrupt orders, causing flat Q2 growth
• Distributor and retailer stock adjustments delay sales
• Demand likely to pick up from November with stable prices

Hindustan Unilever Limited (HUL), India’s biggest consumer goods company, expects flat to low single digit growth in the second quarter ending September 30, 2025. The slowdown comes as new GST rate cuts led to short term disruptions in distributor and retailer orders.

The company said the rollout of revised GST rates caused delays in ordering, as distributors and retailers cleared old inventory before stocking new products with updated prices. Consumers also postponed their purchases, waiting for products to reflect the lower GST rates. This disruption impacted sales across HUL’s portfolio, which includes popular brands like Lux soap, Surf Excel detergent, and Ponds cream.

HUL warned that these effects might continue into October, given the existing inventory in the supply chain. However, the company is optimistic about a recovery starting November, supported by stable prices, improved disposable incomes, and refreshed product offerings.

Also Read: Government Monitors E-Commerce Prices After GST Cut

The government’s GST reform lowered tax rates to 5% on many essential items, benefiting roughly 40% of HUL’s products, including toiletries, packaged foods, and nutritional supplements. HUL called the tax cuts a positive step to boost consumption and pledged to pass on the benefits to consumers through competitive pricing.

Despite the temporary slowdown, HUL described the Q2 weakness as a one-time issue and expects normal business momentum to return soon.