Mumbai, July 24, 2025:
Nestlé India reported its financial results for the first quarter of fiscal year 2026 (Q1 FY26), ending June 30, 2025. While the FMCG major posted solid revenue growth, net profit witnessed a notable decline of 13.4% year-on-year, mainly due to rising operational and input costs.
📊 Key Highlights: Nestlé India Q1 FY26 Financial Performance
- Net Profit (PAT): ₹647 crore (YoY decline of 13.4%) — significantly below analyst expectations of ₹732 crore.
- Revenue from Operations: ₹5,096 crore, a YoY growth of 6%.
- Total Sales: ₹5,074 crore, up 5.9% from Q1 FY25.
- Domestic Sales: ₹4,860 crore, rising 5.5% YoY.
- Export Sales: ₹214 crore, marking a 16% YoY jump.
- Total Income: ₹5,100 crore — 5% growth compared to the previous year.
- EBITDA Margin: 21.7% of sales.
- Earnings Per Share (EPS): ₹6.84.
- Dividend: Final dividend of ₹10 per share for FY25, payable from July 24, 2025.
⚠️ Why Did Nestlé's Profit Decline?
The decline in profit is attributed to increased operating costs, including:
- Rising global prices of key raw materials like coffee and cocoa.
- Higher manufacturing costs due to factory expansions.
- Increased finance costs linked to commercial bank borrowings.
📈 Category-Wise Performance
Despite pressure on the bottom line, Nestlé’s core product segments showed strong growth momentum:
- NESCAFÉ-led Beverages: Continued double-digit growth.
- MAGGI Cooking Aids & Dishes: Volume-driven growth, especially in Rurban markets and quick commerce platforms.
- Confectionery: High double-digit growth driven by rural demand, premium product offerings, and innovative launches.
📉 Nestlé India Share Price Reaction
Following the Q1 earnings report:
- Nestlé India shares fell nearly 6% on the BSE.
- On the NSE, shares were trading at ₹2,323.90, down ₹128.60 or 5.24% as of July 24, 2025.
