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Informist, Thursday, Oct. 16, 2025

 

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--[I] Nestle India Jul-Sept net profit INR 7.53 bln 
--[I] Analysts saw Nestle India Jul-Sept net profit at INR 7.23 bln 
--[I] Nestle India Jul-Sept revenue INR 56.44 bln 
--[I] Analysts saw Nestle India Jul-Sept revenue at INR 53.37 bln 
--[I] Nestle India Jul-Sept net profit INR 7.53 bln vs INR 9.86 bln year ago 
--[I] Nestle India Jul-Sept revenue INR 56.44 bln vs INR 51.04 bln year ago 
--[I] Nestle India Jul-Sept EBITDA INR 12.37 bln vs INR 11.68 bln year ago 
--[I] Nestle India Apr-Sept net profit INR 14.12 bln vs INR 17.33 bln year ago 
--[I] Nestle India Apr-Sept revenue INR 107.40 bln vs INR 99.18 bln year ago 
--[I] Nestle India Jul-Sept domestic sales INR 54.11 bln vs INR 48.83 bln yr ago 
--[I] Nestle India Jul-Sept exports INR 2.19 bln vs INR 1.92 bln year ago 
--[I] Nestle India Jul-Sept EBITDA 22% of sales 
--[I] Nestle India: Domestic revenue growth in Jul-Sept led by volume growth 
--[I] Nestle India: Confectionery product group grew in double digits Jul-Sept 
--[I] Nestle: Powdered, liquid beverage pdts grew in high double digits Jul-Sept 
--[I] Nestle: Expect milk prices to soften after festive season 
--[I] Nestle: Coffee commodity prices may fall as Vietnam, India crops seem normal 
--[I] Nestle: Edible oil prices may rise due to tight supply, demand globally

 

By Avishek Rakshit

 

KOLKATA – With three of its four product groups registering strong volume-led double-digit growth in the September quarter, Nestle India Ltd. clocked its best-ever quarterly revenue since its inception in India. Not only was the company able to steer growth amid challenges in its trade channels arising from the recent cut in Goods and Services Tax, it was also able to beat the Street's view on both revenue and net profit.

 

Owing to an overall volume growth, revenue of the Indian arm of the world's largest foods company increased around 11% on year to INR 56.4 billion against the Street's estimate of INR 53.4 billion. Net profit, however, fell around 24% on year to INR 7.5 billion compared with Street's projection of INR 7.2 billion. The fall in Nestle India's profit after tax is on account of a one-time gain in the year-ago quarter accrued from two developments – first, the company's sale of its nutraceuticals business to Dr. Reddy's Ltd. Second, Nestle Health Science Ltd. and Nestle business services division were sold to Nestle Business Services India Pvt. Ltd. The company had reported a one-time gain of INR 2.9 billion from these slump sales in the same quarter a year ago.

 

Discounting the one-time exceptional item and the tax, Nestle India's profit rose by less than a percent on year in the September quarter due to higher stock-in-trade, raw material and other costs.

 

The company's revenue from domestic sales increased around 11% on year to INR 54 billion during the September quarter and revenue from exports increased 14% on year to INR 2.3 billion. 

 

The earnings before interest, tax, depreciation, and amortisation, which accounted for 22% of the September quarter sales, increased nearly 6% on year to INR 12.4 billion during the quarter under review.

 

SEGMENTAL PERFORMANCE
Although Nestle India does not provide segmental reporting based on its product groups, the company, in a statement said that the confectionery product group, which includes chocolates, grew at a strong double-digit rate, driven by significant underlying volume growth. The KitKat brand of wafer chocolates was the largest growth driver and continued to gain market share. India remains the second largest market globally for KitKat. The expansion of numeric distribution of KitKat, particularly in rural areas, contributed to this growth. The Munch and Milkybar brand of chocolates and confectionaries also grew at high double-digit rates, Nestle India said in a statement.

 

The powdered and liquid beverages product group, comprising Nescafe brand of instant coffee and ready-to-drink beverages continued to deliver high double-digit growth. Nescafe continued to lead the coffee category, gaining market share and increasing household penetration, Nestle India said.

 

The prepared dishes and cooking aids product group, which comprises the Maggi brand of instant noodles and ready-to-add spices, registered strong double-digit value growth on the back of accelerated volume growth. Maggi noodles delivered double-digit volume growth, while the Masala-ae-Magic brand continued its strong run, the company said.

 

The pet food business reported high double-digit growth during the quarter under review, achieving its highest turnover since its integration into Nestle India's business. However, milk products and nutrition products saw a mixed performance in the September quarter, with certain segments showing growth while others exhibited muted performance.

 

"The recent amendments in the GST rates announced by the Government of India is a positive step for consumers. It is expected to stimulate consumption, drive affordability and contribute to the overall growth of the FMCG sector and the economy," Manish Tiwary, chairman and managing director of Nestle India, said in the statement. "We have been working closely with our partners, distributors, wholesalers, and retailers, to pass on the benefits of the revised GST rates across our product groups to our consumers."

 

COSTS SURGE
Even as Nestle India registered its best-ever quarterly revenue, this failed to reflect on the company's profit – even after adjusting the exceptional gain in Jul-Sept of FY25 – owing to mounting costs. Raw material costs, which account for 52% of the total costs, increased nearly 19% on year to over INR 24 billion and stock-in-trade purchases increased around 54% on year to INR 1.6 billion.

 

Although the company was able to curtail its outgo on change in inventories of finished goods, work-in-progress, stock-in-trade, employee benefits expenses, finance costs, depreciation and amortisation costs and others increased, eventually leading the total costs to surge 13% on year to over INR 46 billion.

 

SIX-MONTH PERFROMANCE
During Apr-Sept, Nestle India's net profit fell almost 19% on year to INR 14 billion, primarily owing to the effect of the one-time gain in the September quarter of FY25. However, discounting that gain and taxes, the profit still fell around 5% on year to a little over INR 19 billion.

 

The FMCG major's revenue rose over 8% to over INR 107 billion during the six months ended September.

 

OUTLOOK
Nestle India said that as it continues to navigate a rapidly changing complex business environment, it remains firmly focussed on delivering high-quality products. The company's penetration-led volume growth strategy ensures it is present across diverse geographies and platforms.

 

"To support this vision, we will invest in growth by accelerating our investments in brands and manufacturing capacity, bringing forth innovations that are bolder, bigger, and better. In all our endeavours, we will remain 'fast, focussed, flexible', adapting to market dynamics as they evolve," Tiwary said in the statement.

 

In the coming months, Nestle India expects its milk procurement costs to soften after the festival season, coinciding with the onset of the flush season. Flush season refers to the period of highest milk production in terms of dairying. Additionally, the company expects the cost of coffee to stabilise and may decline as the upcoming crop in Vietnam and India appear to be normal.

 

Global supply and demand for cocoa are projected to balance, primarily due to a correction in demand over the past two years, Nestle India said. However, edible oil prices are expected to remain firm and may rise further due to tight supply and demand at the global level, the company said.

 

Shares of Nestle India Thursday surged nearly 5% to an intraday high of INR 1,281.20 on the National Stock Exchange, after the company's September quarter net profit and revenue beat analysts' estimates. At 1412 IST, the stock was at INR 1,267.90, up 3.8% from the previous close. It was also the top gainer in the Nifty 50.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Nishant Maher

 

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