Kwality Wall's (India) Limited posts Rs 33.5 crore first-half profit

Kwality Wall's (India) Limited reported a Rs 33.5 crore profit for the six months ended 30 September 2026, reversing a Rs 62.6 crore loss a year earlier, as total income rose to Rs 1,347 crore from Rs 1,078.8 crore despite a Rs 17.2 crore loss in the September quarter.

How did Kwality Wall's perform in the first half?

Kwality Wall's returned to profit in the six months ended 30 September 2026, recording profit after tax of Rs 33.5 crore against a loss after tax of Rs 62.6 crore in the corresponding six months of 2025. Profit before tax was Rs 42.5 crore, compared with a loss before tax of Rs 61.8 crore a year earlier. Reported earnings per share, or EPS, was Rs 0.15, compared with a loss per share of Rs 0.27 in the prior-year period.

The turnaround came as total income increased by Rs 268.2 crore year on year to Rs 1,347 crore. Sale of products increased to Rs 1,320.8 crore from Rs 1,062.7 crore, while other operating revenue rose to Rs 21.1 crore from Rs 16.1 crore. Kwality Wall's also reported Rs 5.1 crore of other income, whereas no other income was recorded in the corresponding six months of 2025.

Total expenses rose by Rs 179.1 crore to Rs 1,317.3 crore, a slower increase than the Rs 268.2 crore rise in total income. Cost of materials consumed declined to Rs 279.9 crore from Rs 304.4 crore, while purchases of stock-in-trade increased to Rs 289.9 crore from Rs 274.2 crore. Employee benefits expense increased to Rs 114.7 crore from Rs 61.9 crore, and depreciation and amortisation rose to Rs 81.2 crore from Rs 70.1 crore.

Why did Kwality Wall's make a loss in the September quarter?

Kwality Wall's made a Rs 17.2 crore loss after tax in the quarter ended 30 September 2026, following a Rs 50.7 crore profit in the quarter ended 30 June 2026. Total income fell to Rs 467.2 crore in the September quarter from Rs 879.8 crore in the June quarter, a sequential reduction of Rs 412.6 crore. The September-quarter result nevertheless improved from the Rs 100.2 crore loss reported for the quarter ended 30 September 2025.

Kwality Wall's reported a Rs 24.5 crore loss before exceptional items and tax in the September quarter, versus a Rs 54.2 crore profit before exceptional items and tax in June. Total expenses were Rs 491.7 crore, exceeding total income of Rs 467.2 crore. Cost of materials consumed was Rs 100.2 crore, purchases of stock-in-trade were Rs 128.8 crore and other expenses were Rs 139.6 crore during the September quarter.

A Rs 7 lakh exceptional establishment cost was recorded in the September quarter, taking the loss before tax to Rs 25.2 crore. A deferred-tax credit of Rs 8 crore reduced the reported post-tax loss to Rs 17.2 crore. By comparison, the June quarter included Rs 13.5 crore of exceptional items and reported profit after tax of Rs 50.7 crore after a deferred-tax expense of Rs 17 crore.

What changed in Kwality Wall's costs and inventory?

Kwality Wall's reported inventory-related changes that differed sharply between the two 2026 quarters. Changes in inventories of finished goods, work-in-progress and stock-in-trade were Rs 14 crore in the September quarter, compared with Rs 131.4 crore in the June quarter. For the full six months, this line was Rs 145.4 crore, compared with Rs 14.4 crore in the corresponding period of 2025.

Other expenses fell to Rs 139.6 crore in the September quarter from Rs 245.4 crore in June, but the decline was smaller than the sequential Rs 412.6 crore reduction in total income. Employee benefits expense was nearly unchanged quarter on quarter at Rs 57.4 crore, compared with Rs 57.3 crore. Finance costs increased to Rs 10.8 crore from Rs 10.4 crore, while depreciation and amortisation was Rs 40.9 crore against Rs 40.3 crore.

On a year-on-year first-half basis, other expenses decreased to Rs 385 crore from Rs 402.5 crore. That reduction was partly offset by employee benefits expense, which rose by Rs 52.8 crore, and finance costs, which increased by Rs 10.5 crore. Kwality Wall's identifies ice-cream as its only primary reportable segment under Indian Accounting Standard 108, so the filing provides no separate product, geography or business-unit revenue split.

What do Kwality Wall's cash flow and balance sheet show?

Kwality Wall's generated net cash from operating activities of Rs 291.7 crore in the six months ended 30 September 2026, compared with Rs 8.1 crore in the prior-year six months. Cash generated from operations before tax paid was Rs 291.8 crore, supported by a Rs 165.7 crore decrease in inventories and a Rs 55.4 crore decrease in trade and other receivables. The company paid Rs 1 lakh in net income tax.

Cash and cash equivalents rose to Rs 214.4 crore at 30 September 2026 from Rs 14 crore at 31 March 2026. Net cash used in investing activities was Rs 18.7 crore, compared with Rs 60.2 crore in the prior-year six months, principally for purchases of property, plant and equipment, capital work-in-progress and intangible assets. Financing activities used Rs 72.6 crore, including Rs 26 crore of lease-principal payments and Rs 19.4 crore of lease-interest payments.

Total assets were Rs 1,744.2 crore at 30 September 2026, down from Rs 1,836.1 crore at 31 March 2026. Inventories declined to Rs 137.6 crore from Rs 303.3 crore, while trade receivables fell to Rs 44.2 crore from Rs 107.7 crore. Total equity increased to Rs 705.7 crore from Rs 672.2 crore over the same period.

Conclusion

Kwality Wall's shifted from a Rs 62.6 crore first-half loss to a Rs 33.5 crore profit as product sales increased by Rs 258.1 crore and total expense growth trailed income growth. The September-quarter Rs 17.2 crore loss, after a Rs 50.7 crore June-quarter profit, nevertheless coincided with total income falling from Rs 879.8 crore to Rs 467.2 crore sequentially.

The filing does not disclose a quantitative revenue, margin or capital-spending target. A disclosed comparability matter for subsequent assessment is that the quarter and six-month figures for the period ended 30 September 2025 were management-certified and were not subjected to statutory-auditor review or audit, while Kwality Wall's reports only the ice-cream segment.