HUL Q2 Results Analyzed

Key Points

• HUL’s Q2 2026 results predict a 2% revenue rise, down 6% profit.
• Analysts expect flat volume growth due to GST changes impacting sales.
• Gross margins are forecast to decrease by 105 bps due to raw material trends.
• Ebitda margin is predicted to fall by 140 bps due to channel dynamics.
• GST transition creates inventory challenges, impacting working capital.
• Overall, HUL’s performance faces headwinds from transitory GST effects.

Hindustan Unilever Limited (HUL), known for brands like Dove and Lifebuoy, will announce its second quarter (Q2FY26) results on October 23, 2025. Several financial analysts have provided insights into what to expect. These estimates offer a snapshot of the company’s current situation.

Most analysts predict a modest 2% increase in HUL’s revenue for Q2FY26, aiming for a revenue of approximately ₹15,820 crore. However, they also anticipate a decline in net profit of around 6% compared to the previous year, forecast at ₹2,465.63 crore. This is largely due to the impact of recent changes in the Goods and Services Tax (GST).

The key concern among analysts is the impact of the GST rate cut. They anticipate that this will lead to flat volume growth – meaning sales won’t increase significantly – and a lower profit margin. Several firms, including Kotak Institutional Equities, Nuvama Institutional Equities, Motilal Oswal, Emkay Global Financial Services, and others have offered similar projections about overall volume growth and profitability for the quarter.

Specifically, Kotak predicts a 6% drop in net profit, while Nuvama projects a 5% decrease. These forecasts align with a broader expectation of weaker consumer demand due to the temporary disruption caused by the GST transition. The analysts also highlight the potential for challenges in managing inventory levels as the new tax rates take effect, impacting HUL’s working capital.

Gross margins are expected to contract due to rising consumer offers and schemes at the distributor level. The Ebitda margin is forecasted to fall by 142 bps Y-o-Y/11 bps Q-o-Q to 22.4% due to the changes.

HUL’s Q2 results demonstrate the need to navigate changing economic landscapes and consumer behavior effectively.