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Informist, Monday, Jul. 20, 2026

 

By Avishek Rakshit

 

KOLKATA – Continued demand momentum across urban and rural India is expected to help Nestle India Ltd. report strong volume growth for the June quarter. Additionally, price hikes taken by the company over the past two quarters are likely to drive strong revenue and profit growth for the June quarter. 

 

The company, which sells the Maggi brand of instant noodles and Nescafe coffee, is estimated to report a net profit of INR 7.71 billion, up 17% on year, for the June quarter, according to the average of estimates from 12 brokerages. Revenue is seen rising over 18% on year to INR 60.15 billion, the estimates showed. However, on account of a strong show in the March quarter, Nestle India's sequential net profit and revenues are likely to decline around 33% and 11%, respectively. 

 

The highest estimate for net profit is INR 8.86 billion from YES Securities (India) Ltd. and the lowest is INR 7.30 billion from Axis Securities Ltd. The highest estimate for revenue is INR 62.80 billion from YES Securities and the lowest is INR 56.91 billion from Axis Securities. 

 

The company's top line growth for the March quarter is expected to be driven by both sales volume and price hikes, brokerages said. Brokerages such as Nuvama Wealth Management Ltd. expect 19% on-year top line growth for the company for the June quarter, while Axis Securities expect it lower at a little over 12% on year. Kotak Securities Ltd. expects Nestle to register 15% on-year tonnage growth and 19% on-year value growth in the quarter ended June. 

 

Brokerages and industry officials alike said consumer sentiment improved during the June quarter after the government cut the goods and services tax on a large portion of consumer goods in September to boost consumption. Industry officials said sales volume improved in the June quarter despite price hikes, allowing consumer goods companies to report both volume-led and price-led growth. Most companies raised prices in Jan-Mar and then again in Apr-Jun to offset the rise in raw material costs amid volatility in key input prices.

 

Kotak Securities estimates that, except for milk products and nutrition, Nestle India would see continued volume-led consumer demand momentum across all segments, such as foods, beverages, and pet care. 

 

Despite price hikes, demand for coffee remained stable in southern markets where coffee consumption is high. Demand for Maggi noodles remained stable, with a slight uptick in demand in the northern and eastern states during the June quarter. 

 

However, Nestle India's margins may come under pressure owing to volatility in commodity prices and the company's inability to fully pass on cost inflation to consumers. Axis Securities said Nestle India's gross margins are expected to contract by 196 basis points on year, and earnings before interest, tax, depreciation, and amortisation margin may decline 29 bps on year to 21.4% on account of elevated input and fuel costs, coupled with sustained investments in advertising and brand promotions.

 

Nestle India is expected to report an EBITDA of INR 13.33 billion for the June quarter, according to the average of 12 estimates. The highest EBITDA estimate is INR 14.33 billion from Bank of America Global Research and the lowest is INR 12.17 billion from Axis Securities. 

 

The Indian arm of the world's largest foods company, Nestle S.A., will declare its results for the June quarter Wednesday. Monday, shares of Nestle India ended 1.3% higher at INR 1,446.30 on the National Stock Exchange. The stock is up over 3% since the company announced its March quarter results on Apr. 21.

 

Of the 15 research reports on the company available with Informist, 10 have a 'buy' recommendation on the stock at an average target price of INR 1,522, which is 7% higher than the current market price. Three brokerages have a 'hold' recommendation on the stock at an average target price of INR 1,395 and two have a 'sell' recommendation at an average target price of INR 1,298.

 

The following are the Apr-Jun earnings estimates for Nestle India from 12 brokerages, in descending order of the estimate of net profit, in INR billion:

 

Broker Name	Net Sales	Net Profit	EBITDA
YES Securities (India) Ltd	62.80	8.86	14.29
Bank of America Global Research	61.39	8.86	14.33
Prabhudas Lilladher Pvt Ltd	60.14	8.53	14.01
Elara Securities (India) Pvt Ltd	61.10	8.50	13.09
Kotak Securities Ltd	60.81	8.47	13.57
Motilal Oswal Financial Services Ltd	60.36	8.44	13.59
Nuvama Wealth Management Ltd	60.58	8.33	13.63
JM Financial Institutional Securities Pvt Ltd	60.07	8.28	13.60
PhillipCapital (India) Pvt Ltd	59.52	8.10	13.18
Systematix Shares and Stocks (India) Ltd	60.19	8.04	13.09
Emkay Global Financial Services Ltd	59.18	7.37	12.43
Axis Securities Ltd	56.91	7.30	12.17
Average	60.15	7.71	13.33

End

 

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

 

Edited by Shubhayan Bhattacharya

 

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