Nestlé India Q1 profit jumps 48 per cent as sales climb 25 per cent

MUMBAI: Nestlé India has started the new financial year on a recipe for growth. The FMCG major reported a 47.9 per cent rise in standalone net profit for the quarter ended 30 June 2026, supported by broad-based volume growth across its food and beverage portfolio and continued momentum in domestic and export markets.

Nestlé India Limited reported standalone profit after tax of Rs 975.1 crore, up from Rs 659.2 crore in the corresponding quarter last year. On a consolidated basis, profit after tax stood at Rs 958.7 crore.

Total sales for the quarter increased 25.4 per cent to Rs 6,363.3 crore, while revenue from operations reached Rs 6,378.2 crore.

Domestic sales grew 25.0 per cent to Rs 6,073.1 crore, while exports rose 35.6 per cent to Rs 290.2 crore, reflecting stronger overseas demand despite geopolitical uncertainties.

The company’s EBITDA stood at Rs 1,538.1 crore, translating into an EBITDA margin of 24.2 per cent. Earnings per share increased to Rs 5.06, compared with a restated Rs 3.42 in the year-ago period following the bonus share issue.

Nestlé said all four of its core product groups delivered double-digit growth during the quarter.

The powdered and liquid beverages business recorded its 20th consecutive quarter of double-digit growth, driven by higher volumes of NESCAFÉ CLASSIC and NESCAFÉ SUNRISE. Premium offerings such as NESCAFÉ GOLD and ready-to-drink beverages also contributed to performance, while NESPRESSO expanded its retail presence with a new pavilion in Bengaluru.

In confectionery, KITKAT continued to gain market share through increased consumer penetration and brand investments, including a global collaboration with the anime franchise One Piece.

The prepared dishes and cooking aids portfolio maintained momentum as MAGGI strengthened its urban and rural presence. The company introduced seasonal and flavour-led variants, including Tandoori Masala, Curry Masala, Spicy Green Chilli and Veg Atta noodles.

The milk products and nutrition business delivered broad-based growth, with infant nutrition showing sequential improvement and EVERYDAY returning to positive momentum in key markets.

Outside its traditional food portfolio, Nestlé also reported strong double-digit growth in pet food, supported by launches such as FELIX Gravy Lover and PRO PLAN Cat. Its out-of-home business expanded through new offerings including NESCAFÉ Duo Gusto.

Reflecting confidence in its financial position, the board declared a special dividend of Rs 2 per equity share, amounting to Rs 385.7 crore. The payout will be made from residual reserves transferred to retained earnings under a National Company Law Tribunal-approved restructuring scheme.

The special dividend will be paid from 30 July 2026, alongside the previously approved final dividend of Rs 15 per share for FY26, representing a payout of Rs 964.2 crore.

On the distribution front, the company said general trade delivered strong double-digit growth, particularly in rural markets where direct distribution expanded. Quick commerce continued to emerge as a key growth driver within e-commerce, while exports benefited from wider international availability of MAGGI products in Europe and Canada and the launch of NESCAFÉ Sunrise in Lebanon. Nestlé India also received 4-Star Export House recognition during the quarter.

Looking ahead, the company expects global coffee supplies to improve as production recovers in Brazil and Vietnam, although short-term price volatility is likely to persist. Cocoa and sugar prices remain under pressure due to weather-related disruptions, while edible oils continue to trade at elevated levels. Wheat and milk prices are expected to remain largely range-bound, although dairy protein costs continue to face inflationary pressure.

With demand holding up across urban and rural markets and every major product category contributing to growth, Nestlé India has entered FY27 on a strong footing, even as it keeps a close eye on commodity costs that could shape margins in the quarters ahead.