Hindustan Unilever faces a short-term sales dip due to the GST rate cut transition

The company is expected to declare a low -digit consolidated consolidated business growth in September quarter.

“This is a temporary effect, and as prices gain stability, supported by our rising disposable revenues and ongoing portfolio transformation actions,” Hul said on the stock exchange.

Companies had to launch updated prices in the market after 22 September after the rationalization of GST rates, which reduced the prices of various household foundations.

However, the transition for rapidly moving consumer (FMCG) manufacturers selling hundreds of stock holders at millions of sales points has proved that it was challenging considering the scale of three -month business. Meanwhile, retailers stopped receiving collective order with the expectation of lower rates; Companies also liquidate inventory to ensure that revised prices are released as soon as possible.

Temporary effect

Hul, the existing stocks at old prices, distribution in distributors and retailers reported a “temporary” effect.

“This measure supports long -term consumption, while distributors and retailers have seen a temporary effect between the channels to clean the existing inventories at old prices. This caused the order to be postponed,” he said.

Considering the existing pipeline inventory in the channels, Hul expects this effect to continue until October.

“Due to the context mentioned above, we expect consolidated business growth to be flat to a flat single digit for the quarter, which ended on 30 September 2025 based on the current view,” he said.

Dove soaps and surfing excel detergent manufacturer, about 40% of the portfolio – toilet soap, toothpaste, shampoo, hair oil, left -wing dust, lifestyle nuts and other foods, including a previous 12% or 18% GST, including a GST ratio of 5%, he said.

“GST reforms are a positive step to direct consumption by the government… Hul is determined to support the government’s efforts by providing competitive pricing and increasing GST benefits to consumers in a wide range of products since September 22nd.”

In June quarter, Hul’s sales volumes increased by 3% after three quarters of slowing growth. NET Snow increased by 8% La2,732 Crore in a 4 % sales jump La La15,747 Crore.

Last week, competitor Godrej Consumer Products Ltd also emphasized the short -term effect of GST transition.

Godrej Consumer Products LTD, General Manager and General Manager Sudhir Sitapati said, orum I hope to see the improvements entering the festival season because both the direct decrease in GST and the additional disposable income that consumers put into their hands.

35-40% of the portfolio is affected by GST reforms, especially basic features such as soaps and shampoos.