Brand Makers
Dil Ka Jod Hai, Tootega Nahin
HUL targets Q4 FY26 listing for ice cream business after demerger
HUL’s ice cream business declined year-on-year in Q2 FY26, hurt by an extended monsoon and GST transition.
HUL currently has access to 2.5 lakh ice cream cabinets, with plans for further expansion post-demerger.
Hindustan Unilever Ltd (HUL) said the demerger of its ice cream business, comprising brands like Kwality Wall’s, Cornetto and Magnum, is underway and is expected to be completed by December, with a planned stock-market listing in Q4 FY26, subject to regulatory approvals. “In the March quarter at the end of the financial year, we’ll end up listing the company,” the management said.
HUL’s ice cream business declined year-on-year in Q2 FY26, hurt by an extended monsoon and GST transition. The business currently contributes around 3% of HUL’s revenue and operates at low single-digit EBITDA margins. The company said the demerger is expected to improve reported margins by 50–60 bps, given ice cream operates below the HUL average margin of 22–23%.
Shareholders had approved the demerger in August. HUL said the capital-intensive nature of the category, its distinct operating model, and limited synergy with the rest of HUL’s portfolio made it more suitable as an independent listed entity. The business also incurs high capex due to its national footprint and cold-chain infrastructure requirements.
According to the Indian Ice-Cream Manufacturers’ Association (IICMA), the Indian ice cream market, valued at Rs 30,000 crore in 2025, is expected to reach Rs 45,000 crore over the next three years, and Rs 50,000 crore by 2028.
HUL currently has access to 2.5 lakh ice cream cabinets, with plans for further expansion post-demerger. Former CFO Ritesh Tiwari earlier said capacity expansion and regionalising production would be critical to lowering distribution time and costs.
As part of the restructuring, HUL will transfer brand and technology rights for Kwality Wall’s, Magnum and Cornetto to the new entity. A royalty agreement will remain valid through 2028, covering trademarks, technical know-how, and innovation support. The demerged company will also retain access to Unilever’s global R&D and innovation pipeline.
India’s ice-cream sector has grown at a CAGR of 11–12% in recent years, supported by expanding cold-chain infrastructure and rising consumption.
SPOTLIGHT
"The raucous, almost deafening, cuss words from the heartland that Piyush Pandey used with gay abandon turned things upside down in the old world order."
Read MoreThe new face of the browser: Who’s building AI-first browsers, what they do and how they could upend advertising
From OpenAI’s ChatGPT-powered Atlas to Microsoft’s Copilot-enabled Edge, a new generation of AI-first browsers is transforming how people search, surf and interact online — and reshaping the future of digital advertising.