Shares of Hindustan Unilever Ltd (HUL) slipped nearly 3 per cent in early trade on Monday, touching a low of ₹2,443 on the NSE, after the consumer goods major flagged weak September quarter performance. The company said consolidated revenue growth for the July–September period will remain flat to low single digits, citing supply chain and trade disruptions triggered by the government’s recent GST rate revision.
The GST rationalisation, effective September 22, lowered tax rates on a wide range of fast-moving consumer goods. Categories such as soaps, shampoos, hair oils, toothpaste, talcum powder, lifestyle nutrition, and packaged foods now fall under the 5 per cent GST bracket, compared with 12–18 per cent earlier. Nearly 40 per cent of HUL’s product portfolio is impacted.
While the move is expected to benefit consumers and drive demand in the long run, the immediate effect has been a slowdown. Distributors and retailers postponed fresh orders to clear older inventory with higher MRPs, while consumers delayed purchases in anticipation of lower-priced stock. HUL noted that this trend is likely to weigh on sales through October as pipeline inventories adjust.
Brokerage JM Financial reported that HUL has already rolled out price cuts in the high single-digit to low double-digit range across several categories. The firm said lower primary sales in September reflected the destocking cycle across trade channels.
At 10:15 am, HUL shares were trading at ₹2,490, down 1 per cent from Friday’s close. The stock has corrected 16 per cent over the past year, underperforming the broader FMCG index, as demand recovery in rural markets and volume growth remain under pressure.
