HUL Demerger 2025: Share Price in Focus Today – Record Date Announced, 1:1 Share Ratio, Listing Timeline & Key Changes Investors Must Know

Mumbai| November 19
Hindustan Unilever Ltd (HUL) shares were up nearly 2%, trading between ₹2,426–₹2,442, after India’s largest FMCG company announced the final timelines for the demerger of Kwality Wall’s (India) Ltd (KWIL). The restructuring part of Unilever PLC’s global portfolio separation—has emerged as one of the most closely watched corporate actions of the year.

The announcement comes at a time when industry volumes remain uneven, but PL Capital expects sequential improvement from November onwards as GST-related disruptions fade and new stock reaches distributors

7 Key Changes Investors Must Know

1. HUL Demerger: Effective Date Confirmed as December 1, 2025

HUL announced that the demerger will legally take effect on December 1, 2025.
In its filing, the company stated: “The Scheme will come into effect from 1st December 2025, following the fulfilment of all conditions, including submissions to the Registrar of Companies and approvals linked to the NCLT.”

The NCLT approved the Scheme in October 2025, with a rectification order issued on November 6.

2. HUL Demerger: Record Date Fixed for December 5, 2025

The company has set Friday, December 5, 2025, as the record date to determine eligible shareholders who will receive shares of the new Kwality Wall’s (India) Ltd. “Fixing the Record Date as Friday, 5 December 2025, for ascertaining eligible equity shareholders entitled to equity shares of KWIL pursuant to the Scheme,” the company informed stock exchanges.

Any investor holding HUL shares on this date automatically qualifies.

3. HUL Demerger: Share Entitlement Ratio Set at 1:1

All eligible HUL shareholders will receive:

1 KWIL share (₹1 face value) for every 1 HUL share held. This 1:1 share ratio ensures smooth continuity and no dilution impact on existing investors.

4. HUL Demerger: Kwality Wall’s (India) to Become an Independent Listed Ice-Cream Company

Once separated, Kwality Wall’s (India) Ltd will list as a standalone FMCG company., owning popular brands like, Kwality Wall’s, Cornetto, Magnum, Feast and Creamy Delight

HUL executives have guided that the KWIL listing is expected in Q4 FY25–26, subject to regulatory clearances. The management said the demerger will give the business “greater strategic focus and flexibility suited to its distinctive model.”

Also Read: PL Capital Results Tracker Q2 FY26 | Coverage by Amnish Agarwal

5. HUL Demerger: Why the Ice-Cream Unit Is Being Split

HUL explained that the ice-cream business has a different supply chain, capital requirement and competitive environment.

The company noted: “Separating the ice-cream unit enables sharper strategic focus and more effective capital allocation.”

“The demerger is expected to boost HUL’s EBITDA margins by nearly 50bps, as the ice-cream portfolio operates at a lower margin compared to the rest of the company” says Amnish Aggarwal at PL Capital. “The segment was impacted by prolonged monsoon and GST 2.0, but the company expects a recovery from Q3 as pricing stabilises and volume-led growth returns” he adds

6. HUL Demerger: Board Changes Announced Alongside Split

HUL appointed Bobby Parikh as an Independent Director for five years starting December 1, 2025. He will:

• Chair the Risk Management Committee
• Serve on the Audit Committee

HUL management said: “We are delighted to welcome Bobby to the HUL Board. His experience in financial strategy and regulatory frameworks has helped organisations steer complex transformative changes. We look forward to his insights and contributions in the Company’s next phase of growth.”

7. HUL Demerger: Share Price Reaction & PL Capital’s Analyst Outlook

HUL’s stock rose nearly 2% today on strong trading volumes. While the shares are down 7% over the last month, they remain up 4% year-to-date, with investors turning increasingly constructive heading into the demerger.

PL Capital believes the business is positioned for a gradual volume recovery, supported by easing GST pressures, stable commodity prices and stronger execution under the new CEO.

Amnish Aggarwal, Director of Consumer Research at PL Capital, said: “The second quarter was disrupted by GST 2.0 implementation and an extended monsoon, but we expect volumes to pick up from November as the trade adjusts and fresh stock flows through.” He added that the demerger enhances the company’s profitability profile: “Management continues to guide for EBITDA margins of 22–23%, and the ice-cream separation should add close to 50 bps to margins once fully executed.”

Aggarwal said the company’s strategic priorities remain intact: “HUL is doubling down on premiumisation, modernising core brands and scaling high-growth platforms such as Beauty & Wellbeing and Nutrition. These areas are already showing strong momentum and should support mid-single-digit volume growth in the second half.”

PL Capital expects:

• Mid-single-digit volume growth in 2HFY26
• Margin stability at 22–23%, excluding the demerger benefit
• EPS CAGR of ~8.3% over FY26–28 (post ice-cream separation)

Outlook: What Investors Should Watch Next

Going forward, key triggers include:

1. Credit of KWIL shares post record date
2. Listing announcement for the standalone ice-cream company
3. Margin trajectory once the ice-cream drag is removed
4. Volume recovery as GST 2.0 normalisation completes
5. Execution of HUL’s premiumisation and Gen-Z-focused growth strategy

With structural levers strengthening and the demerger set to unlock margin upside, PL Capital believes the move positions HUL for sharper strategic clarity, improved profitability and stronger medium-term value creation.