Kwality Wall’s India Reports ₹222 Crore Q3 FY26 Revenue After Demerger & Market Listing

Mumbai: India’s standalone ice-cream company story is beginning to take shape as Kwality Wall’s (India) Limited publishes its first quarterly performance after completing its demerger and stock market listing earlier this year.

The quarter marked a structural shift for the company as it formally completed its demerger from Hindustan Unilever Limited and listed its equity shares on Indian stock exchanges on February 16, 2026. During Q3 FY26, the company recorded revenue of Rs 222 crore. Organic sales declined by 6.5 percent year-on-year, although volume still grew 1.2 percent, reflecting steady demand in parts of its product portfolio.

Profitability remained under pressure during the quarter. Gross margin stood at 41.5 percent, impacted by one-off trade investments linked to higher MRP stock liquidation and commodity inflation, particularly in cocoa prices. As a result, the company reported an EBITDA loss of Rs 64.2 crore, while EBITDA before IND AS 116 stood at a loss of Rs 83.8 crore. Exceptional expenses of Rs 94 crore were also recorded during the period, mainly related to non-recurring costs.

Demand trends varied across product segments. The impulse ice-cream portfolio delivered mid-single-digit volume growth, supported by strong performance in premium offerings such as Magnum and Cornetto. However, the in-home consumption portfolio saw weaker demand during the quarter. Management indicated that the segment will be relaunched with an improved offering ahead of the 2026 season to revive growth.

Despite softer sales growth, the company continued investing in expansion. It increased the number of company-owned ice-cream cabinets to deepen retail penetration and strengthen distribution reach. Sales through quick-commerce platforms also posted robust double-digit growth, helping unlock new consumption occasions and support premium product adoption. The company is simultaneously upgrading supply chain capabilities and digitalising its route-to-market network to improve servicing and analytics.

Looking ahead, the company expects momentum to improve from the 2026 season onward. Its strategy centers on new product innovations, expanding consumption occasions, and further premiumising the portfolio while maintaining disciplined cost management across the value chain.

Disclaimer: This article is based solely on information contained in the company press release titled “Announcement of Results for the Quarter ended December 31, 2025” issued by Kwality Wall’s (India) Limited and submitted to stock exchanges. It does not include external reporting, verification, or additional sources beyond the disclosed document.