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Informist, Wednesday, Jul. 22, 2026

 

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--Nestle India Apr-Jun net profit INR 9.75 bln 
--Analysts saw Nestle India Apr-Jun net profit at INR 8.17 bln 
--Nestle India Apr-Jun revenue INR 63.78 bln 
--Analysts saw Nestle India Apr-Jun revenue at INR 60.31 bln 
--Nestle India Apr-Jun net profit INR 9.75 bln vs INR 6.59 bln year ago 
--Nestle India Apr-Jun revenue INR 63.78 bln vs INR 50.96 bln year ago 
--Nestle India Apr-Jun domestic sales INR 60.73 bln vs INR 48.60 bln year ago 
--Nestle India Apr-Jun export sales INR 2.90 bln vs INR 2.14 bln year ago 
--Nestle India Apr-Jun EBITDA INR 15.38 bln vs INR 11.00 bln year ago 
--Nestle India Apr-Jun EBITDA margin 24.2% 
--Nestle India: Advertising costs increasing by over 40% in Apr-Jun 
--Nestle India: All 4 segments delivered strong double-digit growth in Q1 
--Nestle India:Coffee supply seen intact led by production in Brazil, Vietnam 
--Nestle India: Cocoa, sugar remain under pressure on irregular rainfall 
 

 

By Avishek Rakshit

 

KOLKATA – Higher sales volume across all of its four business segments in the country led Nestle India Ltd. to report strong growth in its revenue and profit for the June quarter, both of which were ahead of the Street's projections.

 

The Indian division of the world's largest foods company Nestle S.A., reported nearly 48% on-year growth in its net profit for the June quarter at INR 9.75 billion, while the revenue increased over 25% on year to INR 63.78 billion. Analysts had estimated the net profit at INR 8.17 billion and revenue at INR 60.31 billion for the June quarter.

 

The 25% on-year top line growth in the June quarter was the strongest quarterly growth the company registered since the September quarter of 2016-17 (Apr-Mar), and the near 48% on-year growth in profit is the strongest since the December quarter of FY23. 

 

The company's domestic sales in the June quarter grew 25% on year, in line with total sales, and exports grew nearly 36% on year despite geopolitical headwinds, especially from the West Asia crisis. The company registered growth across all of its four categories of products offered in India in the June quarter. 

 

The confectionery product group, which largely comprises chocolates, recorded volume led double-digit growth in the June quarter, bolstered by premiumisation and rising e-commerce sales, with strong underlying transaction across powerhouse brands. Its bestselling brand KitKat gained market share in India in the June quarter. Globally, India is Nestle's largest market for the KitKat brand of chocolate wafer products. 

 

The powdered and liquid beverages product group, primarily comprising coffee, marked the 20th consecutive quarter of double-digit growth. This performance was powered by greater coffee penetration, accelerated premiumisation, and deeper category relevance across consumer segments, supported by sustained brand-building. 

 

In a statement, Nestle India said that over the past year, its NESPRESSO brand had expanded presence across Delhi-NCR, Mumbai, and Bengaluru through a range of retail formats, including boutique, pavilion and pop-up. 

 

The prepared dishes and cooking aids product group recorded strong double-digit growth, driven by sharper engagement with urban consumers, continued expansion in rural markets and focused innovation. This translated into gains in both market share and penetration, the company said in the statement.

 

The milk products and nutrition product group recorded strong, broad-based performance in the June quarter built on underlying volume growth across key brands and channels. The delivery was supported by disciplined brand investments in strengthening category fundamentals, including digital activation, consumer-needs oriented portfolio refinement and continued focus on execution excellence across the portfolio.

 

Apart from these four core portfolios, Nestle India's pet food business delivered strong double-digit growth, supported by portfolio expansion, wider distribution, and sharper consumer engagement in the June quarter. E-commerce continued to be the new growth driver for the company, with quick-commerce as a key growth lever portfolio in the June quarter. 

 

"General trade continued to deliver strong double-digit growth across town classes, with rural markets leading the momentum. Rural distribution touchpoints expanded during the quarter, strengthening direct reach and improving the quality of coverage," Manish Tiwary, the company's chairman and managing director, said in the statement. 

 

Tiwary said quick-commerce emerged as a key growth lever for the company and its sales performance on quick-commerce platforms was supported by improved product availability, a more tailored platform-specific pack portfolio across relevant categories, focused on- and off-platform media investments, and strong participation during key festive occasions.

 

While domestic sales continue to remain the backbone of Nestle India, exports are a key foreign exchange earner. Given the weakness of the Indian rupee, revenue earned in foreign currency is a boon for any company currently, including Nestle India. 

 

In the June quarter, Nestle India expanded its international footprint through new variants and stock keeping units of Maggi brand of instant noodles in Canada and introduced a wider portfolio of Maggi in Europe. Following the launch of Nescafe Sunrise brand in the UAE and Saudi Arabia, exports to Lebanon commenced in the June quarter.

 

While Nestle India's revenue from domestic sales grew nearly 25% on year to INR 60.73 billion, revenue from exports grew nearly 36% on year to INR 2.90 billion in the June quarter. In its endeavour to increase sales volumes and revenue, the company increased its advertising and promotions spends in the June quarter by 40% on year. 

 

However, highest costs did not have a negative bearing on its earnings before interest, tax, depreciation, and amortisation. The company's EBITDA for the June quarter increased 40% on year to INR 15.38 billion, with an EBITDA margin of 24.2%. 

 

The company's cost of materials used to manufacture edible products increased 25% on year to nearly INR 27 billion in the June quarter. This was primarily due to increased production and higher raw material costs, which have been volatile in the recent past. 

 

Being a foods company, Nestle is dependent on harvests to manufacture its products and, hence, the company closely monitors trends in commodity prices. 

 

For the near future, Nestle India's outlook on commodity markets remain mixed. It is of the view that coffee is expected to remain well supplied globally, supported by higher production in Brazil and Vietnam, though short-term volatility may persist due to fund activity and weather-related harvest delays in Brazil. 

 

Cocoa and sugar, however, continue to be under pressure, with cocoa impacted by erratic rainfall across key producing origins and sugar strengthening on lower-than-expected crop estimates, with uneven monsoon conditions linked to El Nino posing a risk to the next crop. 

 

While edible oil prices remain stable at elevated levels, wheat and milk are expected to remain range-bound, and the protein complex, including dairy-based proteins, continues to face inflationary pressure as demand from nutrition and protein-fortification trends outpaces supply expansion.

 

Shares of Nestle India rose further after the company announced its June quarter earnings and traded 3% higher after the results. Before the release of the June quarter results, the stock was nearly 2% higher. Nestle India's stock was the second top gainer in the Nifty 50. At 1239 IST, its shares traded nearly 2% higher at INR 1,474.60 on the National Stock Exchange. Over 4.3 million shares of the company have changed hands so far on the NSE, nearly eight times the number of shares traded until the same time Tueday.  End

 

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

 

Edited by Avishek Dutta

 

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