New Delhi:  Hindustan Unilever Limited (HUL), the Indian subsidiary of Unilever, has reported a nearly 5% decline in profit before tax and exceptional items for the second quarter of 2025. The company attributed this drop to a temporary slowdown in sales volumes as consumers anticipated upcoming Goods and Services Tax (GST) cuts.

The profit before tax and exceptional items fell to ₹33.89 billion (approximately $385.57 million), down from ₹35.64 billion during the same period last year. This decline was accompanied by a 90 basis point drop in the company's EBITDA margin.

Despite the profit dip, HUL's revenue increased by 2% year-on-year to ₹160.34 billion, driven by price hikes across its product range. Notably, the company's net profit after tax rose by 3.6%, bolstered by a one-time gain of ₹1.84 billion.

The company's beauty and personal care division, which includes brands like Dove, Lakmé, and POND'S, continued to perform well, contributing to the overall revenue growth. HUL's focus on premium products and innovation in this segment has helped offset challenges in other areas.

Looking ahead, analysts anticipate that the FMCG sector's performance will improve in the third quarter as consumers begin to benefit from the GST reductions. HUL has maintained its full-year outlook, expressing confidence in the resilience of its diversified portfolio and the long-term growth prospects in the Indian market.