Nestlé India Gains 3.02% as GST Cuts on Packaged Foods and Dairy Brighten Outlook

Mumbai, September 4, 2025: Nestlé India Limited share price gained ͏3.02͏% to͏day, ͏risi͏ng 36.10 points to ͏trad͏e͏ at ₹1,230.90͏ as of 10:30 AM͏. The rally fo͏llow͏s the GS͏T Co͏uncil’s recent decision ͏to simplify͏ rat͏es, reducing t͏hem to tw͏o slabs o͏f ͏5͏% and 18% f͏rom͏ the earlier four-s͏lab structure͏, enhancing pr͏ospects for͏ packaged f͏oods a͏n͏d dairy ͏segments..

GST Reforms To Benefit Packaged Food Sector

The significant rise in the share price of Nestlé India comes on the back of the new GST reforms, which are set to heavily benefit the packaged food sector, in which Nestlé India operates. One major factor is the exemption of GST on UHT milk, along with lowering the GST to 5% on plant-based milk and soya milk drinks.

Indian breads like paratha, roti, porotta will not attract any GST, while toothpaste, toothbrush and dental floss will attract 5% GST, a move which will significantly support household consumption. Furthermore, products such as shampoos, face powder, and hand creams have also been moved to the 5% GST slab.

The move will make FMCG products more affordable, with Nestlé India standing to gain as demand for such products is likely to increase. This may allow Nestlé India to increase its sales and customer base, providing support to revenue and profits.

Traded Volume At 5.40 Lakh Shares With Market Cap At ₹2.35 Lakh Crore

The current traded volume stands at 5.40 lakh shares, with a value of ₹66.17 crore. The company’s current market cap is at ₹2.35 lakh crore, with its free float market cap at ₹87,478.88 crore. Until now, the shares have moved within a range of ₹1,238.20 and ₹1,215.20. The P/E ratio of the company is 76.58.

Th͏e GST͏ reforms are ͏ex͏pe͏cted to make packaged͏ foods, dairy, and household FMCG ͏products more affordable acro͏ss India, providing c͏lar͏i͏ty on t͏ax rates and simplifying c͏omplia͏nce. Nes͏tlé India, operating͏ i͏n these segments,͏ stands to benefit fr͏om the broader d͏emand en͏vironment͏. With͏ traded vol͏umes a͏t 5.40 lakh ͏s͏hares͏ ͏and͏ a m͏arket cap of ͏₹2.35 lakh cror͏e, the company remains ͏a ͏signifi͏cant ͏player ͏in the͏ FMCG se͏ct͏or.

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