Brokers’ opinions on HUL stock range from positive to pessimistic, stating that while trading circumstances would probably return to normal after the GST changeover, they are still keeping an eye out for the volume-led revenue emphasis and the slow growth recovery.
After the FMCG giant reported a 4% year-over-year increase in consolidated net profit for the September quarter (Q2 FY26) to Rs 2,694 crore, helped by a one-time tax advantage, shares of Hindustan Unilever Ltd. (HUL) will be the focus of trade when it starts on Friday. At Rs 2,601 on Thursday, the stock ended the day 0.36 percent higher.
Brokers’ opinions on HUL stock range from positive to pessimistic, stating that while trading circumstances would probably return to normal after the GST changeover, they are still keeping an eye out for the volume-led revenue emphasis and the slow growth recovery. In the second half of FY26, HUL’s management forecasted steady margins and low single-digit price increases, with more robust results anticipated in the December quarter.
The quarterly performance of HUL
While underlying sales growth (USG) was unchanged and underlying volume growth (UVG) was 2%, revenue from operations increased 2% year over year to Rs 16,061 crore. Changes in the GST rate and increased business investments had a short-term impact on the company’s EBITDA margin, which was down 90 basis points from a year earlier at 23.2%.
The settlement of previous years’ tax disputes between Indian and UK tax authorities also had a net beneficial effect of Rs 184 crore during the quarter. Apart from this, earnings after taxes before special items decreased by 4% annually.
Remarks from management
Despite temporary setbacks, HUL’s performance remained “competitive”, according to new CEO and Managing Director Priya Nair. According to CFO Ritesh Tiwari, margins should remain mostly within the current range in Q3, and once the GST transition impact wears off, regular trade conditions should resume in November.
Brokers’ opinions on HUL stock
Morgan Stanley has set a target price of Rs 2,335 per share and has an Equal-Weight rating. With modest single-digit price increase in the second half, it said that trading conditions should return to normal by early November. It sees the proposed ice cream demerger increasing margins by 50–60 basis points and anticipates that the winter and harvest seasons will be important monitorables.
HUL’s Q2 performance was broadly in line with Goldman Sachs’ buy call, which had a target price of Rs 2,850. The analyst also predicted that the growth recovery would be modest in H2.
With a target of Rs 1,966, CLSA reported an Underperform rating, pointing to pressure in personal care and home care but encouraging developments in skincare and health and wellness.