Kwality Walls Ice Cream Ltd (KWIL) remains focused on executing its growth strategy with a strong emphasis on innovation and expanding consumption occasions following its demerger from Hindustan Unilever.
The company reported revenue of ₹222 crore in the December quarter, with organic sales declining 6.5% year-on-year, while volume growth remained positive at 1.2%.
During the quarter, the impulse portfolio delivered mid-single-digit volume growth. However, the in-home portfolio recorded a muted performance and is slated for a relaunch with an improved offering for the 2026 season.
The management said it expects growth momentum to strengthen beginning with the 2026 season. This will be supported by differentiated offerings at strategic price points, wider distribution and continued premiumisation of the portfolio—measures aimed at driving growth and deeper market penetration.
KWIL said it remains committed to disciplined cost management and productivity initiatives across the value chain. While investments in capability building and growth initiatives may keep the cost base elevated in the near term, these efforts are expected to generate operating leverage and support margin improvement as volumes scale up.
Input costs are expected to remain mixed in the near term. Dairy prices are likely to stay elevated due to tighter milk supply, lower yields and persistently higher fodder costs, which continue to keep dairy and derivative prices firm.
Sugar prices are expected to remain mildly inflationary, driven by anticipated increases in the minimum selling price. Although cocoa prices have moderated from recent highs, the benefits are partly offset by currency depreciation. Energy prices, meanwhile, remain volatile amid ongoing geopolitical developments, potentially limiting the pace of overall cost relief.
Deputy Managing Director Chitrank Goel said the quarter marked an important milestone as the company began external reporting following the completion of the demerger.
“This period has been both transformative and challenging. It marks the start of a new chapter, with a clear focus on delivering superior experiences for consumers, creating opportunities for our people and driving long-term shareholder value,” he said.
Goel noted that India’s ice-cream market is at an attractive inflection point, supported by low per capita consumption, scope for cabinet penetration, rising refrigerator ownership and new snacking occasions enabled by quick commerce.
He said growth in Q3 FY26 was affected by prolonged monsoon conditions and GST transition-related impacts. However, power brands Magnum and Cornetto delivered strong volume growth.
The company also continued strengthening digitalisation of its route-to-market capabilities to improve reach, servicing and analytics.