HUL bets on price cuts for sales after GST disruption

Wait for lower prices dampens sales; HUL expects volumes to rise from November

- Soumya Gupta

Tax cuts on packaged food and personal care products disrupted stocks and depressed sales growth at Hindustan Unilever Ltd in the September quarter, but the consumer goods giant expects the price drop and a good monsoon to boost consumer sentiment and sales in the second half of 2025-26.

HUL will focus on raising sales volumes to drive revenue, said chief executive Priya Nair, who took over as the head of India's largest packaged consumer goods firm in August. "Macroeconomic conditions in India were not favourable. The overall FMCG (fast-moving consumer goods) demand was subdued on account of high food inflation, the overall income was challenged, wage inflation, and even weather vagaries led to subdued conditions," Nair added.

For the September quarter, the maker of Surf detergents, Dove soaps and Kissan jams reported a 2% annual growth in revenue from operations to ₹16,061 crore, but volume growth remained flat, and profit after tax (before exceptional items) fell by 4%.

Consolidated total income stood at 16,388 crore, up 1.5% year -on-year. This number comprises sales of products and services, other operating income, and other income, largely from investments, dividends, and interest.

Sales may remain disrupted in October as well, HUL said, as changes in the goods and services tax rates for up to 40% of its products affected inventory across its sprawling distribution network.