The GST reforms will lower the rates on essential FMCG products from 18 percent to 5 percent, with regard to important categories, including hair oil, shampoo, toothpaste, toilet soaps and shaving foam -products that form a considerable part of the HUL’s portfolio.
Hindustan Unilever Limited (HUL) Shares rose by 1.19 percent to £ 2,696.30 in the morning trade on Wednesday, after approval by the GST track of rationalization of the interest rate that will improve the FMCG sector. The share was opened at £ 2,750 against the previous closure of £ 2,664.70.
The GST reforms will lower the rates on essential FMCG products from 18 percent to 5 percent, with regard to important categories, including hair oil, shampoo, toothpaste, toilet soaps and shaving foam -products that form a considerable part of the HUL’s portfolio. Bread will fully see GST elimination, while pasta and noodles will go from 12 percent to 5 percent.
Several brokers have expressed positive prospects for the consumer goods sector. CLSA identified HUL among top beneficiaries and noted that food and home and personal care products will benefit the most from the reforms. Goldman Sachs emphasized Hul alongside Britannia, Colgate and Dabur as important beneficiaries in the FMCG room.
The timing seems strategic and comes just before the festive season when consumer demand usually peaks. UBS noted that the reforms increase consumer sentiment and are particularly supportive for FMCG companies. Trade volume reached 11.35 Lakh shares worth £ 308.44 crore against the middle of the morning.
Market analysts expect companies to pass on the GST benefits to consumers, possibly higher volumes and improved income in the coming quarters, while the inflationary pressure on essential goods will be facilitated.
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Published on September 4, 2025
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