HUL Demerger 2025: Shareholders Approve 1:1 Split; Kwality Walls to List on BSE, NSE Soon; Stock in Red

Hindustan Unilever Limited (HUL) shareholders have a major update as the company secures approval for the 1:1 demerger of its ice cream business into a separate listed entity, Kwality Wall's (India) Limited (KWIL). It is a major update for HUL shareholders, as the demerger is expected to create value and give the ice cream business operational independence, while HUL continues to focus on its core FMCG segments.

In a filing with stock exchanges on August 12, 2025, HUL confirmed that its shareholders approved the demerger resolution by the "requisite majority". The resolution, pursuant to Section 230(6) of the Companies Act, 2013, was passed through remote e-voting and e-voting at the meeting. HUL said, "The Resolution for approval of the Scheme of Arrangement amongst Hindustan Unilever Limited, Kwality Wall's (India) Limited and their respective shareholders... has been passed by the Members by requisite majority."

HUL Demerger Share Ratio and Details

HUL's board had initially approved the demerger of Kwality Wall's in January 2025. Regulatory approvals were later secured from both BSE and NSE in May 2025. After the demerger, Unilever Group shareholders will hold a 61.9% stake in Kwality Wall's.

Kwality Wall's is the parent company of some of India's most popular ice cream brands, including Cornetto, Magnum, Feast, and Creamy Delight.

Under the approved demerger scheme, eligible HUL shareholders will receive one equity share of Kwality Wall's for every one equity share held in HUL as of the record date. The official record date for the HUL demerger will be announced in due course. HUL management had earlier indicated that the ice cream business demerger is likely to be completed by Q1 FY26, with the full listing expected before the end of the current financial year, 2025-26.

HUL Shares Today

As of midday trade, Hindustan Unilever Limited shares were trading at Rs. 2,478.70, down Rs. 5.10 (-0.21%) today. The stock has seen a decline of 1.96% in the past 5 days and 1.58% over the past month, while showing gains of 6.69% in the past 6 months and 6.66% year-to-date.

PL capital in its report dated 31st July, "We expect volume/sales and margins to inch up gradually in coming quarters with expected PAT growth exit of FY26 in high single digits. We expect 5.6% sales CAGR and 4% EPS CAGR over FY25-27. We assign a DCF-based target price of Rs2686 (Rs2601 earlier) as we roll forward to Jun'27, implying a target PE of 55.6x June FY27 EPS. Retain Accumulate."

HUL Q1 FY26 Results

Hindustan Unilever Ltd (HUL) posted a net profit of Rs. 2,768 crore in Q1 FY26, up 6% from Rs. 2,612 crore a year ago. However, PAT before exceptional items dropped 5% to Rs. 2,526 crore due to operational challenges and lower other income. Revenue rose 5% YoY to Rs. 16,323 crore, supported by a 4% growth in underlying volumes despite weak consumer demand. EBITDA stood at Rs. 3,718 crore, slightly lower than Rs. 3,744 crore last year, with margins falling 130 basis points to 22.8% from 24.1%.

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