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 Shares of Hindustan Unilever fell as much as 3.5% on Thursday to their lowest level since May after the Indian consumer goods maker forecast near-term margin pressure.

The stock was the top loser on the benchmark Nifty 50 index, which was up 0.23%.

The 'Clinic Plus' shampoo maker on Wednesday forecast near-term margins at the lower end of its previous forecast range of 23%-24% as costs of key commodities such as palm oil and tea continue to rise and urban demand hit a two-year low in November.

The company posted a marginal rise in its third-quarter profit and a 2% increase in revenue.

Hindustan Unilever appeared to be more cautious about the demand outlook than at the previous analyst meet, Jefferies analyst Vivek Maheshwari said, calling it "a worry".

For the consumer goods industry, growth in urban pockets - which also accounts for two-thirds of the company's revenue - has lagged that in rural areas over the past year and has been an area of concern for most firms.

The FMCG index was trading 0.2% lower on the day, with rival Nestle India, which is yet to report its quarterly results, falling about 1%.

Meanwhile, Citi analyst Vismaya Agarwal said the modest rise in revenue was "completely pricing led", referring to the higher commodity costs.

With inflation continuing to remain sticky and moderate price hikes in effect, consumers shifted to smaller product sizes, Hindustan Unilever said after reporting flat quarterly volumes.

Its shares, which are rated "buy", on average, extended their 12-month loss to nearly 7% on Thursday.