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Informist, Tuesday, Apr. 21, 2026

 

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--Nestle India Jan-Mar net profit INR 11.14 bln vs INR 8.85 bln year ago
--Analysts saw Nestle India Jan-Mar net profit at INR 9.75 bln
--Nestle India Jan-Mar revenue INR 67.48 bln vs INR 55.04 bln year ago
--Analysts saw Nestle India Jan-Mar revenue at INR 62.72 bln
--Nestle India to pay INR 5 per share final dividend
--Nestle India final dividend record date Jul 10
--Nestle India FY26 net profit INR 35.45 bln vs INR 33.15 bln year ago
--Nestle India FY26 revenue INR 231.55 bln vs INR 202.02 bln year ago
--Nestle India Jan-Mar domestic sales INR 64.45 bln vs INR 52.35 bln year ago
--Nestle India Jan-Mar export sales INR 2.79 bln vs INR 2.13 bln year ago
--Nestle India Jan-Mar EBITDA INR 17.72 bln vs INR 13.88 bln year ago
--Nestle India Jan-Mar EBITDA 23% of revenue
--Nestle India: Recorded high double-digit growth in volumes in Jan-Mar
--Nestle India Jan-Mar EBITDA margin at 26.3%
--Nestle India: Domestic sales growth in Jan-Mar was broad based 
--Nestle India: Confectionery pdt sales, volume grew in high double digit Q4

 

By Avishek Rakshit

 

KOLKATA – With three of its five product groups registering double-digit volume growth in the March quarter, Nestle India Ltd. Tuesday reported its best year-on-year revenue growth for a quarter in nearly a decade. The top line of the Indian arm of the Swiss food and beverage giant rose nearly 23% on year. The last time it had reported higher revenue growth was in the September quarter of the financial year 2015-16 (Apr-Mar), according to data compiled by Informist.

 

Owing to the overall volume growth, Nestle India's revenue increased to INR 67.48 billion, against the Street's estimate of INR 62.72 billion. The net profit increased by around 26% on year to INR 11.14 billion. Analysts had estimated the net profit at INR 9.75 billion.

 

The company's revenue from domestic sales increased over 23% on year to INR 64.45 billion during the March quarter. The revenue from exports rose over 31% on year to INR 2.79 billion.

 

The company's earnings before interest, tax, depreciation, and amortisation, which amounts to 23% of its March quarter sales, increased nearly 28% on year to INR 17.72 billion.

 

For the year ended March, Nestle India's net profit rose nearly 7% to INR 35.45 billion. The revenue increased nearly 15% to INR 231.55 billion.

 

SEGMENTAL PERFORMANCE

Although Nestle India does not provide segmental reporting based on its product groups, the company, in a statement, said the confectionery product group, which includes chocolates, grew at a strong double-digit rate in both value and volume, underpinned by strong underlying transaction growth across its powerhouse brands, which includes KitKat and Munch. Increased distribution, enhanced freshness through the visi-cooler programme across retail outlets, and a slew of innovations helped sustain this momentum, the company said.

 

The powdered and liquid beverages product group, comprising the Nescafe brand of instant coffee and ready-to-drink beverages, continued to deliver high double-digit growth driven by increased penetration of coffee, accelerated premiumisation, and deeper category relevance across consumer segments, supported by strong brand equity and an expanded footprint.

 

The prepared dishes and cooking aids product group, which comprises the Maggi brand of instant noodles and ready-to-add spices, posted strong volume-driven growth by engaging urban consumers and expanding rural reach, leading to gains in both market share and penetration, Nestle said in its statement.

 

The milk products and nutrition product group showed resilience, delivering steady growth. Nestle expanded the portfolio accessibility and value by introducing new and larger pack sizes across the portfolio to support consumer needs, the company said.

 

The pet foods business reported high double-digit growth, driven by a strong innovation pipeline to expand penetration and trials, wider distribution, and a sharper focus on building deeper bonds between pets and owners.

 

"Nestle India delivered high double-digit growth and recorded its highest-ever domestic sales, at INR 6,445 crore (INR 64.45 billion). This performance was powered by double-digit volume growth, driven by over 50% increase in advertising spends, whilst delivering a healthy EBITDA margin of 26.3%," Manish Tiwary, chairman and managing director, said in the statement. "Encouragingly, all product groups contributed to this performance... Penetration and premiumization, combined with disciplined resource allocation and strong execution, have been key in driving growth."

 

COST SURGE, OUTLOOK

While Nestle India registered a decade's highest revenue growth, cost pressures also mounted. Raw material costs, which account for 54% of Nestle India's total costs, increased nearly 20% on year to over INR 28 billion. Stock-in-trade purchases increased by around 21% on year to INR 2 billion.

 

Although the company was able to curtail its outgo on employee benefit expenses and finance costs, depreciation and amortisation costs and other expenses increased, causing the total costs to surge by 21% on year to over INR 52 billion. 

 

Nestle India said coffee prices continued to trend lower, supported by a favourable crop in Vietnam and the forthcoming harvest in Brazil. Cocoa prices have remained subdued, reflecting improved supply and moderated demand. Sugar prices have also remained stable.

 

Edible oil prices are, however, firm and have moved higher in line with global crude oil prices, supported by increased diversion to biodiesel. The wheat crop was affected by unseasonal rains in April, resulting in a delayed harvest and lower quantity and quality. Milk prices have firmed up and are expected to remain high through the summer lean season, the company said.

 

OPERATIONAL STRATEGY 

Nestle said it continued to execute an omni-channel strategy aligned to the evolving retail ecosystem, scaling e-commerce and quick commerce, strengthening modern trade and chain pharmacy, and sustaining growth through general trade across semi-urban and rural markets. 

 

Nestle India remained focused on improving in-stock availability, reducing lead times, and enhancing execution consistency through sharper channel-wise assortment and pack roles, closer partner collaboration, and technology-enabled replenishment.

 

In rural markets, the company strengthened its route-to-market and accelerated reach expansion through a focused approach anchored on infrastructure, product portfolio, technology, visibility, and consumer communication. This integrated approach, the company said, delivered a strong scaling up of its reach across geographies, supporting the highest reach increase among industry peers, driven primarily by rural markets.

 

In the current financial year, the company said it will focus on four key priorities--consumer centricity, penetration-led volume growth, reinvestment behind brands and capacity, and accelerating technology-led sales and operations. Tuesday, its shares closed 7.3% higher at INR 1,379.90 per share on the National Stock Exchange.  End

 

Edited by Rajeev Pai

 

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