Most brokerage firms have maintained their ratings on the stock following the Q2 results, though some have trimmed their price targets.
Goldman Sachs has reduced its price target to ₹2,850 from ₹2,900 earlier but retained its ‘Buy’ rating, despite near-term margin pressure and a slower-than-expected recovery.The brokerage said volume growth in Q2 was impacted by headwinds related to the Goods and Services Tax (GST) transition. It expects a gradual recovery in the second half of the year, though at a slower pace than earlier anticipated.
The new CEO has emphasised that driving volume-led revenue growth remains the company’s top priority.
Macquarie has an ‘Outperform’ rating on HUL, with a price target of ₹3,000.
The foreign brokerage said it expects steady demand recovery in the second half of the fiscal year (H2FY26) and said that the 200-basis-point impact from the GST transition should reverse, leading to sales growth above the 4% seen in the first half of FY26.
HUL has retained its EBITDA margin guidance of 22-23% for FY26 despite a Q2 earnings beat and expects a 50-60 basis point margin benefit from the upcoming ice cream business demerger, according to Macquarie.The company’s focus on premiumisation and volume growth aligns with improving demand conditions, the brokerage added.
CLSA, however, has an ‘Underperform’ rating with a price target of ₹1,966. It said HUL’s ongoing portfolio renovation, centred on volume-led growth, remains the key focus area.
By segment, HUL’s Home Care business saw growth led by liquid detergents, though price growth remained negative. In Beauty and Personal Care, skin care products drove growth, while the personal care segment saw a volume decline. The Foods business grew 3% year-on-year, led by low single-digit volume gains.
Morgan Stanley, which has an ‘Equalweight’ rating and a price target of ₹2,335, said price growth is expected to remain in low single digits in the second half of the fiscal year.
The brokerage mentioned that the second half should perform better than the first (H1FY26 > H2FY26), aided by the winter and harvest seasons, both key factors to monitor.
Morgan Stanley also said the GST transition affected Q2 volume growth by around 2%. Sequentially, gross margin improved by 135 basis points, offsetting higher trade support costs. It expects trading conditions to normalise from early November, though it may take a few months to restore trade inventory levels to the usual four- to six-week cycle.
Demand remains stable across both rural and urban markets, the brokerage added. The ice cream business demerger is expected to contribute an additional 50-60 basis points to overall margins, supporting HUL’s 22-23% EBITDA margin guidance.
Among the 44 analysts that have coverage on HUL, 33 of them continue to have a ‘Buy’ rating on the stock, nine say ‘Hold’, while two others have a ‘Sell’ rating.
Shares of Hindustan Unilever settled almost flat at ₹2,601. The stock has risen 12% on a year-to-date basis.
