Hindustan Unilever Limited (HUL) has received listing and trading approvals from the BSE and the National Stock Exchange of India for its demerged ice-cream business, clearing the way for Kwality Wall’s (India) to list on the exchanges on February 16.
The approval covers 2,34,95,91,262 equity shares and marks the formal culmination of HUL’s first major portfolio separation in recent years.
The demerger of the ice-cream vertical became effective from December 1, with December 5 fixed as the record date to determine eligible shareholders. Under the scheme, shareholders received one share of Kwality Wall’s for every one share of HUL held as of the record date. With exchange approvals now in place, these shares will begin trading next week, creating India’s first pure-play listed ice-cream company.
The spin-off is part of HUL’s broader strategy to unlock value by separating a capital-intensive and seasonal business from its core FMCG operations. The ice-cream division includes brands such as Cornetto, Magnum, Feast and Creamy Delight and operates one of India’s largest cold-chain networks, with more than two lakh cabinets across the country.
Following the demerger, The Magnum Ice Cream Company will acquire a 61.9% stake in Kwality Wall’s from the Unilever Group, providing the standalone entity with global strategic backing.
Brokerage estimates suggest a potential valuation of ₹50–55 per share, implying around 5x EV/sales. This is lower than HUL’s broader FMCG multiple, reflecting the seasonal nature and relatively lower margins of the ice-cream business. While the recent reduction in GST on ice cream from 18% to 5% is expected to support affordability and volume recovery, the standalone entity faces profitability pressures.
Kwality Wall’s reported an EBITDA margin of 7.1% in FY25, which slipped to breakeven in the first half of FY26. Analysts have indicated that clarity on capital expenditure plans, manufacturing investments and cash position will be key triggers for margin improvement. Peers such as Vadilal and Havmor currently operate at higher margin profiles.
For HUL, the separation sharpens its focus on core categories including home care, personal care, beauty and foods. In Q3FY26, the company reported 2.8% year-on-year revenue growth with underlying volume growth of 4%, while EBITDA margin stood at 23%. Management has reiterated its guidance of maintaining margins in the 22–23% range.
The market debut of Kwality Wall’s will now serve as a test of investor appetite for a standalone ice-cream play, while marking a significant shift in HUL’s portfolio strategy.
