In its latest financial update, Kwality Wall’s India Limited disclosed a net loss of ₹17.2 crore for the September quarter (Q2 FY27), an improvement over the ₹100.2 crore loss recorded in the same period of the prior fiscal year. During this quarter, the company generated revenue from operations of ₹463.6 crore, with sales of products amounting to ₹453 crore.
The company reported organic sales growth of 42.2%, driven by organic volume growth of 31.8% and price growth of 7.9%, according to its earnings announcement. However, revenue from operations nearly halved sequentially, falling 47.3% from ₹879.8 crore in the June quarter (Q1 FY27). The company had reported a net profit of ₹50.7 crore in the previous quarter.
Profitability Improvements and Sales Expansion
Despite the net loss, Kwality Wall’s achieved positive earnings before interest, taxes, depreciation, and amortization (EBITDA) of ₹27.2 crore before exceptional items, translating to a 6% EBITDA margin. The gross margin expanded by 282 basis points year-over-year to 46.4%, supported by a favourable product mix, productivity measures, and disciplined pricing—even as input costs rose due to the transition of its in-home portfolio to dairy-based products.
Growth was broad-based across General Trade, Quick Commerce, and Modern Trade channels. Quick Commerce recorded high double-digit growth, while Modern Trade reported healthy growth. The company said that this quarter represented its highest organic sales growth in the past 16 quarters, with volumes contributing most of the growth. Its impulse portfolio recorded high double-digit volume growth, and the relaunched in-home range also reported strong double-digit growth; now featuring a richer, creamier dairy-based formulation.
For the six months ended September 2026, Kwality Wall’s reported revenue from operations of ₹1,341.9 crore and a net profit of ₹33.5 crore, compared with a ₹62.6 crore loss recorded in the same period last year. EBITDA for the first half stood at ₹132.1 crore, with a 10% margin. As of September 30, 2026, the company held ₹214.4 crore in cash and cash equivalents, up from ₹14 crore at the end of March 2026.
These results come against a backdrop of rising milk prices and increasing input costs for dairy companies. Milk procurement prices have remained raised due to higher cattle feed and fodder costs, while uneven rainfall has affected milk production in some regions. In September, industry players expected milk prices to remain high even during the October-February flush season, when supplies typically increase. Cattle feed costs were 15-20% higher year-on-year, while cow milk procurement prices had risen around 30%, according to industry estimates. Additionally, Karnataka increased Nandini milk prices by ₹8 per litre from November 1, citing rising production costs and the need to improve returns to dairy farmers.
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