Kwality Wall's reported a strong performance for the first quarter of FY27, with net profit rising 34.8% year-on-year to Rs 50.7 crore from Rs 37.6 crore, supported by robust sales growth and improved operating profitability.
Revenue increased 16.7% to Rs 868 crore in quarter ended June from Rs 744 crore in the year-ago quarter. EBITDA rose 49.5% to Rs 95.7 crore from Rs 64 crore, while EBITDA margin expanded 240 basis points to 11% from 8.6%.
The company's performance was supported by strong demand during the summer season, with the impulse portfolio continuing to deliver double-digit growth.
Kwality Wall's reported revenue of Rs 8,678 million in the first quarter, translating into organic sales growth of 16.6%. Organic volume growth stood at 14.9%, indicating that volume expansion remained a key contributor to the company's performance. The company said its impulse portfolio maintained strong momentum, recording double-digit growth during the quarter.
The ice cream maker also relaunched its in-home portfolio with an improved product formulation and a refreshed "Made with Milk" proposition. The company said the move is aimed at strengthening the portfolio's consumer appeal and creating additional consumption opportunities.
The company's Q1 results included exceptional items that had a significant impact on reported earnings. The company recorded a gain of Rs 39.4 crore from the reversal of royalty and central service fees payable to Magnum IP Holding B.V. for the period between October 1, 2025 and March 31, 2026. The reversal was made in accordance with the intellectual property agreement between Magnum and the company.
This gain was partly offset by an impairment allowance of Rs 16.6 crore on property, plant and equipment and establishment costs of Rs 9.3 crore. Despite these exceptional items, the company delivered strong growth in operating performance, with EBITDA increasing nearly 50% year-on-year.
Looking ahead, Kwality Wall's said seasonality remains an inherent characteristic of the ice cream business. However, the company plans to continue its growth agenda through innovation, creation of new consumption occasions and expansion of consumer reach.
The company also plans to maintain a disciplined approach to cost management while pursuing productivity initiatives across the value chain.
Kwality Wall's cautioned that investments in capabilities and strategic growth priorities could keep its cost base elevated in the near term. However, it expects these investments to accelerate growth, create scale and drive operating leverage as the business expands.
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