HUL-Kwality Walls Demerger Big Update: FMCG Major’s ice cream unit shares to list on NSE, BSE – Check date

FMCG major Hindustan Unilever Ltd (HUL) has completed the demerger of its ice cream business into a separate entity, Kwality Wall’s (India) Ltd (KWIL). The approvals were granted on 12 February and apply to both exchanges. Each share has a face value of Rs 1.

The HUL’s ice cream business includes popular brands such as Kwality Wall’s, Cornetto, and Magnum. It will operate with a separate management team and a dedicated growth roadmap.

The National Stock Exchange (NSE) and BSE have approved the listing and trading of 2,34,95,91,262 equity shares of KWIL with effect from 16 February 2026.

The listing of Kwality Wall’s shares will allow investors to directly invest in the ice cream business, which had a distinct business model and supply chain from HUL’s other operations. Analysts estimate the valuation of the ice cream business at around Rs 12,000–15,000 crore, with potential share prices for KWIL in the range of Rs 50–60.

HUL’s consolidated financials for the December quarter of FY26 showed a two-fold jump in net profit to Rs 6,603 crore, mainly driven by a one-off positive impact from the ice cream demerger. In the same quarter last year, the company had posted a net profit of Rs 2,989 crore.

Excluding exceptional items, HUL’s profit after tax rose marginally by 1 per cent year-on-year to Rs 2,562 crore. Revenue from product sales increased 5.71 per cent to Rs 16,197 crore, while total expenses rose 6.37 per cent to Rs 13,078 crore.

HUL CEO and Managing Director Priya Nair said, “During the quarter, demand trends reflected early signs of recovery. Against this backdrop, we delivered 6 per cent revenue growth and 4 per cent Underlying Volume Growth.”

The demerger became effective from 1 December 2025, with a 1:1 entitlement ratio. For every one HUL share held, shareholders received one share of Kwality Wall’s for free. The last date to buy HUL shares to be eligible for KWIL shares was 4 December 2025, while the record date was 5 December 2025, when HUL traded ex-demerger. The new Kwality Wall’s shares were allotted to eligible shareholders on 29 December 2025.

The separation is expected to have a small positive impact on HUL’s financial performance. Since the ice cream business operates at a low single-digit EBITDA margin, the overall EBITDA of HUL is estimated to improve by 50–60 basis points post-demerger.

In a separate development, HUL has acquired the remaining 49 per cent stake in Zywie Ventures Private Limited for a total consideration of Rs 824 crore. The acquisition follows the Share Subscription and Share Purchase Agreement terms and gives HUL full control of Zywie, a company focused on digital and nutrition-led initiatives.

The ice cream unit will now function as an independent entity, focusing on expanding its product portfolio and market presence. The move is expected to unlock value for shareholders by providing clarity on HUL’s core FMCG operations and creating a dedicated platform for the growth of ice cream brands.