Hindustan Unilever Shares Hit 6-Year Low Before Q2 Results

Hindustan Unilever (HUL) shares fell as much as 3 per cent to ₹1,758.60 on the BSE on Tuesday, 27 October, their lowest level since March 2020, a day before the company’s board meets to approve its July–September results, Business Standard reported. The stock has lost nearly 10 per cent in a month and about 24 per cent so far in 2026.

Price Hikes Are Costing Volumes

Brokerages expect the maker of Surf Excel, Lux and Brooke Bond to report sales growth driven mostly by higher prices rather than more units sold. Antique Stock Broking expects double-digit revenue growth but volume growth only near mid-single digits. Elara Capital expects volume growth across FMCG companies to ease to 9.0 per cent in the quarter from 9.5 per cent in April–June.

For shoppers, that means the price increases already seen on soaps, detergents and packaged foods have not yet cooled, and companies are watching how much more households will absorb.

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Input Costs Squeeze Margins

Elara named HUL among FMCG companies likely to see operating margins shrink from a year earlier. It estimates sugar prices are up 18 per cent year on year, palm oil 21 per cent and crude oil 47 per cent. Antique expects HUL’s EBITDA margin to fall by 21 basis points from the previous quarter. Elara also expects gross margins to slip as companies use up costlier stock.

The fall also came on a day when the Sensex was almost unchanged, ending at 73,598.67. HUL has fallen faster than the benchmark, which is down 13.6 per cent this year, Business Standard said. Earlier, FSSAI notices to FMCG makers were covered in IPB’s report on infant-food sugar rules.

Results and Dividend on 28 October

HUL’s board will meet on Wednesday, 28 October, to consider unaudited standalone and consolidated results for the quarter and half-year ended 30 September 2026. It will also consider an interim dividend for 2026-27, if any. More market coverage is on IPB’s Economy page.

Source: Based on reporting by Business Standard and Zeebiz.

Image: Business Standard.