Nestlé India's Q1 profit soars 48% to ₹975 crore as sales jump 25% on strong volume growth across rural and urban channels.
Nestlé India Bets on Volume Growth Over Price Hikes

FMCG major posts ₹975 crore net profit as revenue climbs 25% across beverages, confectionery, and prepared food portfolios.

Nestlé India delivered a robust financial performance for the first quarter ended June 30 (Q1 FY27), reporting a 47.9% year-on-year surge in standalone net profit to ₹975.1 crore ($101.1 million). The consumer goods major achieved broad-based top-line and bottom-line expansion, with revenue from operations climbing 25.2% to ₹6,378.2 crore compared to ₹5,096.2 crore in the corresponding period last year. The earnings beat pushed Nestlé India’s stock up over 4%, touching a 52-week high of ₹1,510 on the National Stock Exchange.

The company’s performance was underpinned by volume-led demand across both urban centers and expanding rural distribution networks. Total domestic sales grew 25.0% to ₹6,073.1 crore, while export revenue surged 35.6% to ₹290.2 crore despite ongoing global trade and geopolitical headwinds. Managing Director Manish Tiwary noted that all four core product categories—powdered and liquid beverages, confectionery, milk products, and prepared dishes—recorded double-digit growth during the quarter, signaling sustained consumer confidence in core umbrella brands like Maggi, Nescafé, and KitKat.

Operational profitability showed significant expansion alongside the top-line growth. Earnings before interest, tax, depreciation, and amortization (EBITDA) advanced 39.8% year-on-year to ₹1,538.1 crore, expanding the company’s operating margin from 21.6% to 24.2%. This margin resilience was maintained even as Nestlé India ramped up brand-building investments, boosting advertising and promotional spending by more than 40% to strengthen market penetration across traditional, modern trade, and quick-commerce digital channels.

Category-level momentum was led by the beverages division, where Nescafé Classic and Nescafé Sunrise completed their 20th consecutive quarter of double-digit growth. Confectionery sales benefited from premiumization and rapid adoption in e-commerce, while the Prepared Dishes and Cooking Aids portfolio sustained steady momentum through distribution expansion in tier-2 to tier-4 markets. Quick commerce emerged as a key growth driver, supported by targeted, platform-specific packaging and impulse-purchase campaigns.

Looking ahead, management flagged potential commodity cost pressures stemming from global supply chain risks, specifically highlighting volatility in raw cocoa and sugar prices linked to recent climate events. However, with stable coffee supply expectations, accelerating operational cost-savings initiatives, and strong volume growth across rural and urban markets, Nestlé India enters the rest of the fiscal year with solid balance sheet fundamentals.

Source: Storyboard18 / Moneycontrol / NDTV Profit

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