Kwality Wall’s India posts 16.6 per cent organic sales growth in Q1

MUMBAI: Kwality Wall’s is giving the ice cream market plenty to chew on. The company reported 16.6 per cent organic sales growth in the quarter ended 30 June 2026, with volumes rising 14.9 per cent, as premium products, new launches and wider distribution helped the newly listed business build momentum.

Revenue stood at Rs 8,678 million, while organic price growth was 1.5 per cent. EBITDA before exceptional items rose to Rs 1,049 million, taking the margin to 12.1 per cent, an improvement of 166 basis points year on year.

The quarter is particularly significant as it marks Kwality Wall’s India’s first full quarter as an independent listed company following its demerger from Hindustan Unilever (HUL) and stock market listing in February 2026. Since the business did not operate as a standalone entity previously, its Q1 FY26 figures are presented on a pro forma basis.

Kwality Wall’s said growth was supported by innovation, premiumisation and occasion-led demand creation. The company introduced more than 31 innovations and renovations during the first six months, spanning premium indulgence and everyday snacking.

The premium portfolio received additions including Magnum Caramel Pop, Magnum Pistachio and Cornetto Almond Crunch, while the company is also expanding its Kulfeez range onto Quick Commerce platforms.

Chitrank Goel, Deputy Managing Director, Kwality Wall’s India, said the performance was driven by premiumisation and the company’s occasion-led approach, while brands including Cornetto, Kwality Wall’s and Magnum remain central to its strategy.

The company’s In-home portfolio is undergoing a significant change, with Kwality Wall’s transitioning products towards a dairy-based formulation with a richer and creamier recipe.

The revamped range is being built around a “Made with Milk” proposition and delivered double-digit growth during the quarter, helped by innovation as well as Modern Trade and Quick Commerce.

New flavours including Hawaiian Nut Sundae and Kesar Bhog have also been added. Despite higher input costs from the dairy transition, gross margin improved to 45.6 per cent, supported by product mix and pricing discipline.

Quick Commerce has emerged as an important growth engine, delivering double-digit growth during the quarter. Kwality Wall’s is increasing the availability of products such as Kulfeez on these platforms as consumer buying habits shift towards faster delivery.

Modern Trade also recorded healthy growth, while General Trade benefited from wider distribution. The company has increased its physical reach through cabinet deployment, helping improve availability and retail penetration.

The strategy increasingly combines traditional retail with Modern Trade and Quick Commerce, while the company is also using analytics and technology to improve distributor productivity, service levels and decision-making.

The strong topline performance comes as Kwality Wall’s continues to invest in building its capabilities as an independent business. Employee and other operating expenses remained elevated during the quarter as the company invested in talent, infrastructure and organisational capabilities.

The company expects these investments to support scale and operating leverage over time, while maintaining a focus on productivity and cost discipline.

With seasonality remaining an inherent feature of the ice cream business, Kwality Wall’s is banking on volume-led growth, premiumisation, new consumption occasions, product innovation and broader distribution to sustain momentum.

For a business only recently separated from HUL, the first full quarter offers an early taste of its standalone strategy and the numbers suggest the appetite is strong.