Hindustan Unilever Ltd reported flat underlying volume growth for Q2, reflecting a market transition due to GST reforms. The company anticipates stabilizing prices to enable normal trading from early November. Near-term price hikes are expected in low single digits, with EBITDA margins remaining stable.
Hindustan Unilever Ltd (HUL) addressed Q2 performance challenges, highlighting flat underlying volume growth as the market adjusted to significant GST reforms introduced earlier this year. The company cited a transitory impact this quarter caused by changes in pricing and taxation structures, resulting in subdued consumption.
The management is optimistic that with prices stabilizing, normal trading conditions will resume starting early November 2025. Price increases in the near term are expected to remain in the low single-digit range, demonstrating HUL’s cautious approach to balancing inflationary pressures and consumer affordability.
Despite market volatility, HUL expects its EBITDA margins to sustain at current levels in the near term, supported by operational efficiencies and judicious cost control. The company remains committed to driving growth through continued innovation and market penetration without compromising profitability.
Key Highlights:
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Q2 witnessed flat underlying volume growth amid GST reform adjustments.
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Transitory impact experienced as the market realigned to new pricing and tax norms.
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Normal trading conditions expected from early November post price stabilization.
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Anticipated near-term price growth in low single digits to balance market dynamics.
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EBITDA margins projected to remain stable, reflecting operational resilience.
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Focus on consumer affordability, innovation, and sustainable growth strategies.
Major Takeaway:
HUL’s Q2 results reflect a temporary volume plateau due to external tax changes, but stable margins and controlled pricing signal readiness to rebound as market conditions normalize, maintaining its leadership in India’s FMCG sector.
Sources: NSE Circular, BSE Circular, Hindustan Unilever official disclosures.