HUL to double down on high-growth categories, digital brand building in FY26

FMCG major Hindustan Unilever Limited (HUL), which reported steady earnings for the second quarter of FY26, remains optimistic about growth in sales and profit in the coming quarters as pricing stabilizes following revisions in GST tax slabs.

The company’s newly appointed CEO, Priya Nair, said that while around 40% of HUL’s portfolio now falls under the 5% GST slab, consumer hesitation to purchase goods before the rate cut came into effect temporarily impacted sales performance in Q2.

The Centre simplified the Goods and Services Tax (GST) structure effective September 22, reducing rates across key sectors of trade and commerce. Prices of several commodities, particularly in the FMCG segment, were revised downward to the 5% slab.

HUL boosts ad spends to Rs 1,661 crore in Q2 FY26

According to Nair, the latest GST reforms are a positive step by the government to drive consumption, enhance disposable income, and improve consumer sentiment. However, she added that the quarter saw a transitory impact as markets adjusted to these changes. Nair expects normal trading conditions to resume by early November, as prices stabilize.

Priya Nair’s first big decision as HUL CEO, passes GST benefits to consumers

Looking ahead, HUL plans to accelerate portfolio transformation by sharpening consumer segmentation, future-proofing marketing and sales capabilities through enhanced online brand discovery and fulfillment, and investing disproportionately in high-growth demand spaces.

HUL on Thursday reported a 3.8% year-on-year rise in consolidated net profit to Rs 2,694 crore for Q2 FY26, while revenue from operations grew 2.1% YoY to Rs 16,034 crore.

Among segments, home care led with Rs 5,664 crore, followed by foods at Rs 3,869 crore, beauty & well-being at Rs 3,732 crore, and personal care at Rs 2,425 crore.

HUL appoints Niranjan Gupta as CFO; succeeds Ritesh Tiwari