HUL Share Price Drops After Weak Q2 Business Update | Stock Market Today

Market Performance

HUL share price slipped sharply in the latest trading session, falling up to 2.35% to ₹2,453 per share.

The stock has seen a 5.53% decline over the past month, even though it has gained 12.50% in the last six months.

The sudden fall was triggered by the company’s September quarter business update, which indicated muted growth trends.

Main News

In its latest exchange filing, HUL signalled that consolidated business growth for Q2 is likely to remain flat or show only low single-digit growth on a yearly basis.

The management linked this slowdown to temporary disruptions across trade and distribution channels, following the recent GST rate rationalisation announced earlier this month.

From September 22, revised GST rates came into effect, reducing taxes on several consumer staples. This change, although positive for consumption in the long term, has caused short-term turbulence across distribution networks.

Impact of GST Rate Revision

According to the filing, nearly 40% of HUL’s portfolio — covering Toilet Soap, Toothpaste, Shampoo, Hair Oil, Talcum Powder, Lifestyle Nutrition and Foods — has seen GST rates drop to 5% from the earlier 12% or 18%.

But ahead of this transition, distributors and retailers paused fresh orders to clear older inventory at previous prices.

This led to:

• Delayed restocking of products
• Lower ordering across channels
• Consumers postponing pantry purchases in anticipation of new prices

As a result, sales in September witnessed a visible dip, and the company expects the impact to spill into October as channel inventory resets.

Company Details

• Business Growth Outlook for Q2: Near flat to low single-digit
• Key Disruption Trigger: GST rate revision effective from September 22
• Product Portfolio Affected by GST Change: ~40%

The company highlighted that while the measure supports long-term consumption, short-term sales were hit due to supply chain readjustments.

Summary

To sum it up, HUL share price reacted negatively to its Q2 update, which pointed towards muted growth caused by GST-led distribution disruption.

The stock market today reflected this sentiment, with the stock slipping despite its six-month gains remaining intact.

The broader message from the filing is clear — regulatory reform may boost demand eventually, but for now, HUL is navigating a transition phase across its supply chain.