The company reported loss before exceptional item of Rs 109.22 crore during the quarter ended 31st December 2025 compared with loss before exceptional items of Rs 97 crore posted in corresponding quarter last year.

Exceptional loss stood at Rs 93.70 during the quarter. This includes one-off establishment cost of Rs 7.93 crore, impairment of assets related to a discontinued brand of Rs 46.47 crore, impairment allowance on property, plant and equipment of Rs 27 crore, interest on indirect tax litigation of Rs 7.65 crore and impact of change in labour code amounting to Rs 4.65 crore.

The company reported negative EBITDA of Rs 64 crore in Q3 FY26, reflecting the impact of lower gross margins, and continued growth led investment made across the value chain.

For Q3 FY26, the company posted negative organic sales growth (OSG) of 6.5% yea-on-year and volume growth of 1.2%. The impulse portfolio delivered mid-single digit volume growth during the quarter. However, the in-home portfolio saw a muted response and is planned to be relaunched with an improved offering for the 2026 season.

The company said that 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.

On commodity outlook front, the company said that input costs are expected to remain mixed in the near term. Dairy prices are likely to stay elevated, reflecting tighter milk supply, lower yields, and persistently higher fodder costs, which continue to keep dairy and its derivatives prices firm. Sugar is expected to remain mildly inflationary, driven by anticipated increases in the minimum selling price (MSP). While cocoa prices have moderated from recent highs, the benefit is partly offset by currency depreciation. Meanwhile, energy prices remain volatile amid ongoing geopolitical developments, which may limit the pace of overall cost relief.

Chitrank Goel, deputy managing director of Kwality Wall’s (India), said, “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. We have initiated structural cost control measures aimed at restoring margin discipline without compromising growth investments.

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.”

The stock was listed on 16 February 2026, following the demerger of Hindustan Unilever’s ice cream business into Kwality Wall’s (India), which became effective 1 December 2025 under a scheme approved by the National Company Law Tribunal (NCLT).

Kwality Walls (India) owns brands such as Magnum, Cornetto and Twister and operates in over 400 cities with a distribution network of more than 200,000 outlets.