Nestlé India Q2 profit jumps 36.3 per cent as sales rise 20.5 per cent

GURGAON: Nestlé India is selling more, spending more and still earning more. In the second quarter of financial year 2026-27, the maker of MAGGI, KITKAT and NESCAFÉ grew total sales by 20.5 per cent to Rs 6,782.2 crore, driven by robust, double-digit volume growth. Profit after tax climbed 36.3 per cent to Rs 1,026.8 crore, and earnings per share came in at Rs 5.32. All this while advertising and marketing spend rose 46 per cent.

Gurugram, October 15, 2026: The board of directors of Nestlé India today approved the results for the second quarter of financial year 2026-27. Domestic sales grew 20.4 per cent, and the EBITDA margin remained healthy at 23.8 per cent.

The numbers, and what they say

The headline figures tell a tidy story. Total sales growth was 20.5 per cent and domestic sales growth 20.4 per cent. Profit grew far faster than sales, which suggests the company is converting growth into earnings rather than simply buying it. Cost of materials consumed as a share of sales fell from 45.5 per cent to 43.1 per cent, a gain of 2.4 percentage points, even as the company put significantly more money behind its brands.

The six-month picture is just as firm. Sale of products reached Rs 13,145.4 crore, against Rs 10,704.2 crore a year earlier, and profit for the half year rose to Rs 2,001.9 crore from Rs 1,412.4 crore. On a consolidated basis, which includes its associate Dr Reddy’s and Nestlé Health Science Limited, profit for the quarter was Rs 1,009.6 crore and earnings per share Rs 5.24.

Tiwary on the quarter

Manish Tiwary, chairman and managing director, Nestlé India, said: “I am pleased to share that the quarter saw a continuation of strong and broad-based growth across all product groups, with total sales reaching Rs 6,782.2 crore, with a growth of 20.5 per cent, that was driven by robust, double-digit volume growth. We continued to focus on efficiencies across our operations while significantly increasing investments behind our brands, with advertising and marketing spends up by 46 per cent. EBITDA margin remained healthy at 23.8 per cent. Profit after tax for the quarter stood at Rs 1,026.8 crore, up 36.3 per cent over the corresponding quarter.

“Rising inflation, particularly food inflation, is a reality. We remain focused on navigating these external challenges through continuous innovation and renovation, sustained investments behind our brands, and an intensified focus on productivity and operational efficiencies to mitigate commodity cost pressures. I would like to thank our teams for their extraordinary commitment, resilience, and unwavering focus on execution in this challenging environment.

“At Nestlé India, food safety and quality are the foundation of consumer trust. I am proud of the unflinching commitment of our colleagues across our manufacturing units and would like to congratulate them for receiving the CII Food Safety & Quality Awards for our Sanand and Ponda factories and the Nestlé Global Quality Award for the Samalkha factory. These recognitions reaffirm our commitment to delivering safe, high-quality products to millions of consumers every day.”

Product groups: broad-based and volume-led

Confectionery recorded another strong quarter of volume-led double-digit growth, driven by continued market share gains in KITKAT and sustained momentum across MUNCH and MILKYBAR. The premium portfolio was strengthened with the launch of KITKAT Delights Choco Lava, while the MUNCH Onam Pack helped drive festive consumption. The global Formula 1 partnership was used to launch the F1 Tin Gift Pack, featuring Formula 1 car-shaped chocolates exclusively on e-commerce platforms, which received a strong consumer response.

Powdered and liquid beverages delivered another quarter of strong, volume-led growth, driven by sustained household reach, enhanced affordability and continued premiumisation across the coffee portfolio. NESCAFÉ CLASSIC continued to drive household recruitment, supported by a renewed communication campaign. The relaunch of NESCAFÉ SUNRISE with an improved consumer-preferred recipe and enhanced aroma strengthened the proposition in the chicory-coffee segment. The premium portfolio, led by NESCAFÉ GOLD, sustained strong double-digit growth, and NESCAFÉ Ready-to-Drink continued to scale rapidly, reinforcing cold coffee as a key future growth platform. NESPRESSO continued its strong momentum in e-commerce and retail, helped by premiumisation and by building seasonal relevance in summer through iced coffee.

Prepared dishes and cooking aids delivered strong growth. MAGGI noodles continued to expand through rural penetration, while MAGGI Masala-ae-Magic focused on driving household penetration by unlocking regional top dish usage across the country. MAGGI also widened its variety with MAGGI Double Masala, the Spicy range and the scaling-up of the new MAGGI veg atta with the taste of MAGGI masala.

Milk products and nutrition saw strong, broad-based growth, with investments in brand building and portfolio optimisation. The nutrition category continued to deliver sequentially strengthening performance, and toddler-specific products delivered strong growth with market share gains.

The pet food business delivered strong double-digit growth, supported by sharper consumer engagement on digital platforms and a focused route to market. Nestlé India continued to strengthen its presence in cat food through science-based nutritional solutions across mainstream and premium offerings, with FELIX Gravy Lover, PRO PLAN Cat and FRISKIES wet cat. Nestlé Professional continued its strong momentum, delivering robust, double-digit, volume-led growth through premium offerings, customer-centric solutions and innovative applications for the out-of-home space.

Channels: quick commerce and rural reach

E-commerce delivered strong growth, led by continued momentum in quick commerce, supported by improved product availability, a sharper channel-specific assortment and pack architecture, enhanced digital shelf execution and targeted shopper engagement. General trade delivered robust, double-digit growth across town classes, led by strong momentum in rural markets, where continued expansion of distribution touchpoints enhanced direct reach and market coverage. Organised trade delivered strong growth across key categories, backed by improved in-store execution, consumer activations, enhanced shelf visibility and continued expansion of the store network.

In out-of-home, growth was supported by customer retention and acquisition, innovation and premiumisation. The beverage portfolio was strengthened by the expansion of NESCAFÉ Duo Gusto, billed as an industry-first hot and cold machine, and an enhanced range of cold beverage solutions such as Nestlé SHIKANJI. In food, recipe-led innovations drove the expansion of MAGGI Coconut Milk Powder in coastal cuisines and increased the adoption of MILKMAID in café and bakery applications.

Exports maintained strong double-digit growth, driven by portfolio expansion and continued market development. During the quarter, MAGGI Masala-e-Magic was launched in Canada, NESCAFÉ SUNRISE expanded across five West African markets, and a new instant coffee variant was added in the Middle East.

Digital tools, village roots and a green power bet

Digitalisation continues to strengthen execution. Building on the success of NestMitra for retailers, the company is now putting data-enabled digital tools directly into the hands of its sales teams. Its sales officer app equips hundreds of sales officers with near real-time market insights, helping them identify opportunities and improve engagement.

Tiwary also spoke of a recent visit to Bathri, a village adopted under the company’s Village Development Programme near its Tahliwal factory in Himachal Pradesh. “During a recent visit to Bathri, a village adopted under our Village Development Programme near our Tahliwal factory in Himachal Pradesh, I spent time with the gram pradhan. As we walked through the village, he shared stories of children staying in school, families paying greater attention to nutrition and hygiene, and farmers looking to the future with renewed confidence. This was a reminder that the true measure of impact lies in helping communities believe that a brighter future is within reach.

“I would like to thank our Board, shareholders, employees, retailers, distributors, and partners for their continued confidence and our consumers for the trust they place in our brands.”

On sustainability, the company entered into a Share Subscription and Shareholders’ Agreement dated August 27, 2026 to acquire a 26 per cent equity stake in Radiance KA Sunshine Seven Private Limited, by subscribing to 7,612,500 equity shares of Rs 10 each. Radiance KA is establishing a captive renewable energy power plant to meet the power requirements of one of the company’s manufacturing facilities, supporting its commitment to increase the share of renewable energy in its operations.

Financial highlights: quarter 2, 2026-27

• Total sales of Rs 6,782.2 crore
• Total sales growth at 20.5 per cent, domestic sales growth at 20.4 per cent
• EBITDA margin of 23.8 per cent
• Profit after tax of Rs 1,026.8 crore, up 36.3 per cent over the corresponding quarter
• Earnings per share of Rs 5.32

Commodity outlook

Coffee and wheat are expected to remain range-bound, while sugar and edible oils have stabilised at elevated levels. Cocoa remains volatile due to weather-driven crop concerns in key origins. Milk prices have strengthened seasonally but should ease as flush supplies arrive.