Why HUL Share Price is Falling

The FMCG sector is expected to do well in the long term, driven by sustainable growth and government support for rural India.

In fact, rural areas are already contributing significantly to the growth of these companies, led by the personal care and home care categories.

But one company in the FMCG sector, Hindustan Unilever (HUL) is currently facing a slowdown in the stock market. It's share price stands out as a prominent underperformer.

HUL is India's largest fast-moving consumer goods company and a subsidiary of the global Unilever group.

Recently, its share price drew attention as it declined, raising concerns among investors.

What's dragging it down?

Q2 Business Update

Shares of HUL declined due to a weak Q2 business update released by the company.

The company, in its latest exchange filing, said that its sales growth for the July-September quarter (Q2 FY26) is expected to be flat or show only single-digit growth compared to last year.

The slowdown is mainly due to temporary disruption in the trade and distribution network. Recent GST changes, effective from 22 September 2025, reduced GST on essential FMCG products like soaps, shampoos, toothpaste, and food items from 12-18% to 5%, causing this disruption.

This GST cut is good for consumers and may boost demand later. However, its causing short-term issues for HUL. Retailers and distributors are holding back orders to clear old stock, and shoppers are delaying purchases until lower prices are available.

HUL's sales dropped temporarily in September and are expected to continue dropping in October due to old inventory clearance.

However, the company expects demand to pick up from November, driven by stable prices, higher disposable income, and product improvements.

In short, the company sees this as a short-term disruption, not a structural problem and expects a recovery from November.

What Next?

Going forward, HUL plans to boost investments to drive volume growth despite margin pressures, anticipating a revival in consumer demand.

HUL has ruled out separating its foods business, citing benefits from shared supply chain, distribution, and market structures.

The company recently acquired a 90.5% stake in Uprising Science, the parent company of the beauty and personal care brand Minimalist. This acquisition will boost its direct-to-consumer business.

HUL's strong brand equity and product pipeline provide confidence for steady growth and resilience in FY26 and beyond.

How HUL Share Price Has Performed Recently

In the past month, HUL shares have declined 5.6% but the price is up 11% over the last six months.

Over the past one year, the share price has declined 15.2%.

The stock touched its 52-week high of Rs 3,029 on 27 September 2024 and a 52-week low of Rs 2,136 on 4 April 2025.

About HUL

HUL is India's leading Fast Moving Consumer Goods (FMCG) company with a diverse product portfolio including soaps and detergents, personal care products, and food and beverages.

HUL was established in 1931 as Hindustan Vanaspati Manufacturing. Following a merger of constituent groups in 1956, it was renamed Hindustan Lever. The company was renamed again in June 2007 as Hindustan Unilever Ltd.

For more details about the company, you can have a look at HUL factsheet and its latest quarterly results on our website.

For a sector overview, read our FMCG sector report.

You can also compare HUL with its peers.

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Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

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