Kwality Wall's: Ice cream maker's stock falls 30% since listing
Kwality Wall's, the first dedicated ice cream company to list in India, had a rough start on the stock market—shares listed at ₹29.80 on the NSE (a c.25.9% discount to the NSE adjusted/discovered price of ₹40.20) on February 16, 2026 and subsequently fell over 30% in the following sessions.
The company was spun off from Hindustan Unilever (HUL), and HUL shareholders got one share each. Still, the stock opened much lower than expected and quickly slid further.
Over 3 crore shares changed hands on the NSE
Kwality Wall's shares opened at ₹29.80 on NSE and ₹29.90 on BSE—about 22-26% below their indicative prices.
Heavy selling pushed prices down to around ₹27.95 on the second day, with over three crore shares changing hands on the NSE around 1:40pm.
The company's market cap at listing was just over ₹7,001 crore.
The company's profit margins are shrinking
The company has been facing shrinking profit margins—falling from 7.1% in 2025 to nearly zero in 2026 to date—which is far below rival Vadilal's numbers.
Magnum Ice Cream Company is trying to buy a bigger stake with an open offer at ₹21.33 per share, while LIC recently picked up about a 6.6% stake.
Potential for recovery exists if GST on ice cream drops
There might be some relief ahead: if GST on ice cream drops from 18% to 5%, demand could bounce back.
Analysts once valued Kwality Wall's as high as ₹50-55 per share, so there's still potential if things improve down the line.