Market Performance
Nestle India share price remains under investor watch after the company posted a mixed set of numbers for the June 2025 quarter. The quarterly results released on July 24, 2025, highlighted a dip in profit but an uptick in revenue, reflecting the complex cost dynamics at play.
Main News
Nestle India reported a 13.4% year-on-year drop in consolidated net profit for Q1 FY26, bringing it down to ₹647 crore from ₹747 crore in Q1 FY25.
At the same time, the company's revenue from operations rose 6% YoY, reaching ₹5,096 crore, compared to ₹4,814 crore in the corresponding quarter last year.
The company's performance was notably impacted by rising operational costs and commodity prices.
Company Details
Nestle India, one of the top FMCG companies in the country and the maker of Maggi, NESCAFÉ, and KitKat, witnessed a healthy 5.5% growth in domestic sales during Q1 FY26. Domestic sales increased to ₹4,860 crore from ₹4,608 crore in Q1 FY25.
Export sales also showed a 16% YoY growth, rising to ₹214 crore in the June 2025 quarter, up from ₹184 crore in the same period the previous year.
Other income components such as product and operational revenue also contributed to the overall financial performance:
- Product Sales: ₹5,074 crore (vs ₹4,793 crore YoY)
- Other Operating Revenue: ₹22 crore (vs ₹21 crore YoY)
- Total Income: ₹5,100 crore (vs ₹4,853 crore YoY)
The company’s chairman noted the quarter was influenced by increased costs due to recent expansions and short-term borrowing needs.
Revenue
- Revenue from operations in Q1 FY26: ₹5,096 crore
- Revenue in Q1 FY25: ₹4,814 crore
- YoY Growth: 6%
EBITDA & Margins
Note: Specific EBITDA figures were not disclosed in the reference article.
However, the company did highlight elevated consumption prices across the commodity portfolio and higher operational costs due to recent manufacturing expansions.
Net Profits
- Q1 FY26 Net Profit: ₹647 crore
- Q1 FY25 Net Profit: ₹747 crore
- YoY Decline: 13.4%
Segment Highlights
The Powdered and Liquid Beverages category continues to be a major growth driver for Nestle India. This segment saw strong double-digit growth, led by NESCAFÉ products.
NESCAFÉ retained its leadership in the coffee category by:
- Gaining additional market share
- Launching affordable and premium offerings
- Expanding the reach of NESCAFÉ Gold and NESCAFÉ Roastery
- Reporting sustained growth in NESCAFÉ RTD
Cost Dynamics & Outlook
Operational and financial costs surged due to:
- Recent manufacturing expansions (past 7–8 months)
- Increased borrowing for cash flow requirements
- Elevated commodity prices, particularly for inputs like milk, cocoa, and edible oils
However, Nestle India also noted a stabilization trend in some raw material prices:
- Cocoa and edible oil prices have started stabilizing
- Coffee prices are showing a downward trend
- Milk prices remain stable with a modest increase
Summary of the Article
Nestle India share price could see fluctuations after its Q1 FY26 earnings report revealed a 13% drop in net profit despite a 6% rise in revenue. The company's domestic and export sales posted decent growth, led by strong performance in the beverages segment. Operational challenges and cost inflation impacted overall profitability, but product demand remained healthy.
With robust performance in key categories like NESCAFÉ and a broad product portfolio, Nestle India remains a key player in the FMCG sector.
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