Nestlé India Net Profit Down by 13.4% in June Quarter

Gurugram, July 24, 2025 – Nestlé India Ltd (NSE: NESTLEIND, BSE: 500790) reported a consolidated net profit of ₹646.59 crore in Q1 FY26, down 13.4% YoY from ₹746.6 crore in Q1 FY25. The decline was mainly due to inflationary pressures on key inputs like cocoa and coffee, impacting margins despite a 6% rise in revenue, which reached ₹5,096 cr for the quarter, the company said.

The company’s board also announced the appointment of Manish Tiwary as Chairman and Managing Director effective August 1, 2025, succeeding Suresh Narayanan who retires on July 31.

Key Financial Highlights (Standalone)

Nestlé India Ltd reported a sequential and year-on-year decline in profitability for the quarter ended June 30, 2025 (Q1FY26). Revenue from operations stood at ₹5,096.2 crore, down from ₹5,503.9 crore in Q4FY25 but up from ₹4,813.9 crore in Q1FY25. Profit before tax came in at ₹900.5 crore, compared to ₹1,204.6 crore in the previous quarter and ₹1,009 crore in the year-ago period. Net profit declined to ₹659.2 crore from ₹885.4 crore in Q4FY25 and ₹746.6 crore in Q1FY25. Correspondingly, earnings per share (EPS) dropped to ₹6.84 in Q1FY26, from ₹9.18 in the previous quarter and ₹7.74 a year earlier.

Dividend Update: Nestlé India paid a final dividend of ₹10 per share for FY25, effective July 24, 2025.

Stock Performance

As of 12:26 PM IST on July 24, shares of Nestlé India Ltd were trading at ₹2,335.00, down ₹117.50 or 4.79% for the day, after opening at ₹2,452.80 and hitting an intraday high of ₹2,475.00 and a low of ₹2,315.40.

Segment-wise Performance (Domestic Q1FY26)

• Powdered & Liquid Beverages: Double-digit growth driven by strong performance of NESCAFÉ Classic, NESCAFÉ Sunrise, and NESCAFÉ Gold. Cold coffee activations helped lift sales in summer months.
• Prepared Dishes & Cooking Aids: Double-digit growth in the MAGGI portfolio, with robust demand from both Quick Commerce and Rurban markets. The “Spicy” MAGGI variants showed strong consumer traction.
• Confectionery: High double-digit growth led by KITKAT, MUNCH, and MILKYBAR. New launches such as KITKAT Duo and KITKAT Lemon n Lime gained popularity.
• Milk Products & Nutrition: Mixed results; MILKMAID posted single-digit growth, while the Growing Up Milk segment expanded its market share.

Business Channel Commentary

• E-commerce: Accounted for 12.5% of domestic sales. Growth supported by quick commerce and new launches.
• Out-of-Home Business: Maintained strong double-digit growth, with 1,000 retail kiosks (NESCAFÉ Corners, MAGGI Hotspots, KITKAT Break Zones) operational nationwide.
• Export Sales: Reported high double-digit growth despite commodity headwinds, with notable traction in categories like coffee and breakfast cereals.

Operational Challenges

Nestlé India faced increased raw material and operational costs, along with higher finance costs due to temporary bank borrowings. However, commodity prices (edible oil, cocoa) have started to stabilize, while milk prices are expected to ease during the flush season.

Leadership Transition

Mr. Suresh Narayanan, who led Nestlé India through a decade of strong growth, will retire on July 31, 2025. During his tenure, the company’s revenue grew at a 10.3% CAGR, PAT surged 490%, and TSR grew at 17% CAGR.

Mr. Manish Tiwary, currently a Director, will take over as Chairman and Managing Director from August 1, 2025.

About the Company

Nestlé India Limited, listed on BSE and NSE, is a leading FMCG player in the food and beverages segment. Its flagship brands include MAGGI, NESCAFÉ, KITKAT, MILKMAID, and MUNCH. The company operates across urban and Rurban markets and has demonstrated consistent earnings performance and brand equity growth over decades.

REF:https://www.bseindia.com/xml-data/corpfiling/AttachLive/1ea0fab8-fa47-4a59-979c-a5db4cfc973a.pdf

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