HUL shares down by more than 3% today, after September quarter result disappoints

Hindustan Unilever Ltd (HUL) posted its September quarter result yesterday, 23^rd October. Its share price is down today after that. At 11:35 a.m. IST, 24^th October, 2025, HUL’s stock price is down by 3.52%, trading at Rs 2,510. Nifty 50 index is down by 0.32% at this time.

Revenue increased by 2%; profit down by 4%

HUL’s revenues in September quarter increased year-on-year (y-o-y) by 2%. But sales volumes growth was flat. Earnings before interest, taxes, depreciation and amortization (EBITDA) margin came down y-o-y by 90 basis points or 0.9% to 23.2% in the quarter. Profit after tax, excluding one-time gains, came down y-o-y by 4%.

Company declares interim dividend

Some of the company’s products, such as personal care, got impacted by the lower GST rates that came into effect at the end of the September quarter, on 22^nd September. Customers postponed some of their purchases as they waited for lower GST rates to come into force. Under the new GST rate structure, many personal care products have come into the lower tax bracket of 5%.

The company saw strong double-digit growth in its beverages (tea & coffee) segment in September quarter. The company also declared an interim dividend of Rs 19 per share for FY26.

HUL shares trading at a higher multiple than industry peers

The results of the company in the quarter were below expectations. This may be causing some investors to book profit in the stock after its 8% price increase in the past 6 months. Year-to-date in 2025, HUL shares have gained 8.15%. In the same period, Nifty 50 index has gained 8.71%. The stock has underperformed the Nifty 50 index marginally in 2025.

HUL shares are currently trading at 12-month trailing Price-to-earnings (P/E) ratio of 54. That makes it an expensive stock in terms of valuation. Nifty FMCG index is currently trading at an average P/E ratio of around 42. So HUL’s stock is trading at a higher P/E multiple than most of its peers in the FMCG industry.

If economic and geopolitical uncertainty comes down, then HUL’s stock may decline further

The past few months were of high uncertainty with US tariffs and the wars in Middle East and Ukraine going on. Now, ceasefire has been reached between Israel and Hamas. Reports are coming that India and US may reach a trade deal soon. Pressure is being increased on Russia to reach a trade deal with Ukraine soon. Both US and European Union (EU) recently imposed sanctions on Russian oil & gas firms.

FMCG stocks, like HUL, gain during times of uncertainty due to their relatively non-cyclical nature. If the prevailing economic and geopolitical uncertainty gets reduced in the near term, then HUL’s shares are likely to go down further.

Disclaimer : This content is only for informational purpose. It does not make any recommendation to act or invest.

Source: NSE, HUL