Kwality Wall’s India is set to debut on Indian stock exchanges on Monday, February 16, following the demerger of the ice cream business from Hindustan Unilever Limited (HUL).
Hindustan Unilever, in its exchange filing today, February 13, informed investors that Kwality Wall’s has received approval from the stock exchanges for the listing and trading of its 2,34,95,91,262 equity shares, effective February 16, 2026.
The FMCG major demerged its Kwality Wall’s (ice cream) business and transferred it to a new standalone entity — Kwality Wall’s (India) or KWIL.
The demerger took effect on 1 December 2025 after regulatory approvals, and HUL shares started trading ex-ice-cream business from the record date of December 5, 2025.
Under the approved scheme of arrangement, shareholders received one equity share of KWIL for every one share held in HUL.
On the demerger date, ₹44 per share”>HUL’s share price was marked down by ₹44 per share to reflect the value of the demerged ice cream business. During FY25, the ice cream business contributed 3% to HUL’s turnover.
“The primary rationale for the demerger of the ice cream business stems from its limited complementarity and synergies with HUL’s broader business model. This business operates under a distinct model, characterised by a separate go-to-market strategy compared to the rest of HUL, and necessitates a dedicated cold chain infrastructure for both its supply chain and points of sale. Furthermore, its pronounced seasonality and capital intensity distinguish it significantly from other segments,” the company said in its latest annual report.
HUL Q3 results 2026
For the December quarter (Q3FY26), the company reported revenue growth of 6% year-on-year (YoY) to ₹16,235 crore, according to its exchange filings. Underlying volumes grew 4% YoY, compared with flat growth in the September quarter.
Profit after tax, before exceptional items, rose 1% YoY to ₹2,562 crore, against an estimated ₹2,597 crore. Reported profit after tax surged 121% to ₹6,603 crore during the quarter, driven by a one-time gain from the spinoff of ice cream maker Kwality Wall’s (India) Ltd.
However, its EBITDA (operating) margin narrowed by 70 basis points to 23.3%. Expenses rose 6.3% year-on-year, partly due to higher employee benefits under the new labour codes, adding pressure on margins.
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