Mumbai: Kwality Wall’s India Limited reported revenue of ₹222 Crores in Q3 FY26. The company made continued
progress across its strategic growth pillars, reinforcing its commitment to expanding consumption occasions through consumer-centric innovations and strengthening its distribution footprint through company-owned cabinets.
During the quarter, the Company sustained its competitiveness in the price-piano strategy, despite ongoing commodity headwinds. The portfolio remained well-positioned at popular hot-snacking price points, supported by new product introductions that improved consumer accessibility.
The Company continued to expand physical availability, driven by the growth of company owned cabinets. The numeric distribution of company owned cabinets increased in line with our plans during the quarter, enabling deeper retail penetration that will support the growth outlook in the coming quarters.
Momentum in the Q-Commerce (Q-Com) channel remained strong, with sales delivering robust double-digit growth. The channel continues to unlock new consumption occasions, drive premiumisation and reach consumers through faster and more convenient shopper journeys.
The Company’s premiumisation strategy, led by Magnum and Cornetto range, delivered encouraging results. The building block of our strategy of differentiated innovations, expanding new snacking occasions and capturing strategic price points helped Magnum and Cornetto widen its consumer base.
In addition, the Company as part of its product roadmap has taken decisive steps to relaunch its in-home portfolio which will be available in the coming 2026 season. The Company continued to strengthen digitalisation of its route-to-market capabilities thereby enabling better quality of reach and improved servicing, supported by better analytics.
While the reported Gross Margin stood at 41.5%, it has been impacted by certain one offs as called out above and it is to be noted that conversion costs paid to third party contract manufacturers are recorded under purchase of stock‑in‑trade, and on an adjusted basis for these one‑offs and accounting impact, the margins remain healthy. Employee benefit and other expenses increased as the Company transitions to a standalone listed organisation and undertakes investments to upgrade its supply-chain infrastructure, strengthening the end-to-end value chain to manage peak-season demand. These investments are expected to create long-term value for shareholders, and the Company remains committed to prioritising growth-led investments to deliver its volume-driven growth strategy.
The Company has made strong progress on our cost productivity program, targeting non-consumer facing costs across the value chain. Our procurement initiatives have yielded encouraging results, driven by specification harmonization, strategic partnerships, and the development of alternative sourcing options leading to a competitive cost structure. On the manufacturing and distribution front, The Company has made progress across three key pillars: developing regional networks to reduce logistics costs, professional warehousing infrastructure to deliver productivity and improve the asset utilisation. These initiatives are expected to deliver benefits in the coming quarters.
Chitrank Goel, Deputy Managing Director of Kwality Wall’s (India) Limited stated, “This quarter marks an important milestone for our Company as we commence external reporting following the completion of the demerger. The period under review has been both transformative and challenging. This marks the start of a new chapter, with a clear focus on delivering superior experiences for our consumers, creating opportunities for our people, and
driving long-term shareholder value.
The ice cream category in India is at an attractive inflection point, with low levels of per capita consumption, headroom for cabinet penetration, improved refrigerator penetration at homes, and unlocking of new snacking consumption occasions enabled by the rise of quick commerce—providing a strong foundation for sustained volume growth.
Q3 FY26 growth was muted due to prolonged monsoon conditions and GST transition-related impacts. In this context, our power brands, Magnum and Cornetto, delivered strong volume growth, underscoring the resilience of our portfolio and continued consumer demand.
Performance of the in-home portfolio was muted, and corrective actions are underway. The Company has initiated structural cost control measures aimed at restoring margin discipline without compromising growth investments. The Company has laid the foundation for a focused Ice-Cream Company with sharper strategic intent and greater agility to deliver sustainable and profitable growth. I would like to thank our employees, customers, partners, and shareholders for their continued support during this transformative phase.”
