Key Highlights
- Kwality Wall’s India reported revenue of ₹222 crore in Q3 FY26.
- Organic sales declined by 6.5 percent year on year during the quarter.
- Volume growth stood at 1.2 percent in the December quarter FY26.
- EBITDA loss was reported at ₹64.2 crore for Q3 FY26.
- EBITDA loss before IND AS 116 stood at ₹83.8 crore.
- Exceptional expenses of ₹94 crore were recorded during the quarter.
- The company completed its demerger from Hindustan Unilever and listed on stock exchanges in February 2026.
Kwality Wall’s (India) Limited reported revenue of ₹222 crore for the third quarter of FY26 ended December 31, 2025, while posting an EBITDA loss of ₹64.2 crore as the company faced margin pressure due to commodity inflation and trade investments.
The company reported organic sales decline of 6.5 percent year on year during the quarter, while volume growth remained marginally positive at 1.2 percent. EBITDA loss before IND AS 116 stood at ₹83.8 crore.
Margin Pressure From Commodity Costs
The company reported gross margins of 41.5 percent during the quarter. Margins were impacted by one time trade investments related to higher maximum retail price stock liquidation, which reduced margins by around 600 basis points.
Additionally, commodity inflation, particularly rising cocoa prices, contributed another 400 basis points pressure on margins.
Exceptional expenses of ₹94 crore were also recorded during the quarter, largely linked to non recurring costs recognised during the period.
Demerger and Listing Completed
Kwality Wall’s India stated that the demerger of the ice cream business from Hindustan Unilever Limited was successfully completed on December 1, 2025. The company had been incorporated earlier on January 10, 2025.
Following the restructuring, the company’s equity shares were listed on Indian stock exchanges on February 16, 2026.
Portfolio Performance and Strategy
During the quarter, the company said its impulse ice cream portfolio delivered mid single digit volume growth. However, the in home portfolio recorded a muted response and the company plans to relaunch it with an improved product offering ahead of the 2026 season.
The company also continued to expand its distribution network through company owned cabinets to increase retail penetration.
Sales through quick commerce platforms recorded strong double digit growth, helping the company reach consumers through faster delivery channels and drive premium product consumption.
Kwality Wall’s premium brands including Magnum and Cornetto continued to support its premiumisation strategy during the quarter, helping the company expand its consumer base across key price points.
The company stated that its product roadmap for 2026 will include relaunching its in home portfolio and expanding consumption occasions through new product innovations.