HUL demerger: What investors should track — record date, share ratio and Kwality Walls' upcoming listing
The ice-cream business accounts for roughly 3 per cent of HUL's total revenue, with historical EBIT margins in the 5–9 per cent range. According to Nuvama Institutional Equities, margins in recent quarters dropped to mid-single digits due to adverse weather conditions.
- Nov 19, 2025,
- Updated Nov 19, 2025 4:17 PM IST
Hindustan Unilever Ltd (HUL) has fixed December 5, 2025, as the record date for the demerger of its ice-cream division, which will be carved out into a separate entity named Kwality Walls India Ltd (KWIL). Under the approved structure, shareholders will receive one KWIL share for every HUL share held, ensuring mirror-image ownership in the new company.
The ice-cream business accounts for roughly 3 per cent of HUL's total revenue, with historical EBIT margins in the 5–9 per cent range. According to Nuvama Institutional Equities, margins in recent quarters dropped to mid-single digits due to adverse weather conditions.
The brokerage noted that HUL currently trades at approximately 9x EV/Sales, while the demerged ice-cream unit may command a lower valuation multiple because of its smaller scale and weaker margin profile. Nuvama values the ice-cream business at Rs 50–55 per HUL share, implying a potential market capitalisation (m-cap) of Rs 1,200–1,500 crore for KWIL upon listing.
Nuvama expects the pure-play ice-cream company to debut on the stock exchanges in February, though HUL has indicated during its Q2 FY26 earnings call that the listing may occur in Q4FY26. From Q3 FY26 onward, HUL's financial statements will exclude the ice-cream segment, which will be reported as a discontinued operation.
The brokerage believes HUL's EBITDA margin could improve by 50–60 basis points (bps) after the demerger. It also highlighted that the stock has corrected about 9 per cent following muted Q2 results, impacted mainly by GST transition-related issues. October performance is also expected to remain subdued before volumes normalise in November.
Nuvama anticipates a muted Q3 for HUL but expects a stronger Q4 driven by recovery in demand and benefits from transitioning processes. It sees the risk-reward turning favourable at current valuations, noting that the stock trades around 45x FY27E EPS. The brokerage retains its 'Buy' rating with an unchanged target price of Rs 3,195, valuing the company at 60x FY27E EPS.
Hindustan Unilever Ltd (HUL) has fixed December 5, 2025, as the record date for the demerger of its ice-cream division, which will be carved out into a separate entity named Kwality Walls India Ltd (KWIL). Under the approved structure, shareholders will receive one KWIL share for every HUL share held, ensuring mirror-image ownership in the new company.
The ice-cream business accounts for roughly 3 per cent of HUL's total revenue, with historical EBIT margins in the 5–9 per cent range. According to Nuvama Institutional Equities, margins in recent quarters dropped to mid-single digits due to adverse weather conditions.
The brokerage noted that HUL currently trades at approximately 9x EV/Sales, while the demerged ice-cream unit may command a lower valuation multiple because of its smaller scale and weaker margin profile. Nuvama values the ice-cream business at Rs 50–55 per HUL share, implying a potential market capitalisation (m-cap) of Rs 1,200–1,500 crore for KWIL upon listing.
Nuvama expects the pure-play ice-cream company to debut on the stock exchanges in February, though HUL has indicated during its Q2 FY26 earnings call that the listing may occur in Q4FY26. From Q3 FY26 onward, HUL's financial statements will exclude the ice-cream segment, which will be reported as a discontinued operation.
The brokerage believes HUL's EBITDA margin could improve by 50–60 basis points (bps) after the demerger. It also highlighted that the stock has corrected about 9 per cent following muted Q2 results, impacted mainly by GST transition-related issues. October performance is also expected to remain subdued before volumes normalise in November.
Nuvama anticipates a muted Q3 for HUL but expects a stronger Q4 driven by recovery in demand and benefits from transitioning processes. It sees the risk-reward turning favourable at current valuations, noting that the stock trades around 45x FY27E EPS. The brokerage retains its 'Buy' rating with an unchanged target price of Rs 3,195, valuing the company at 60x FY27E EPS.