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Nestlé India shares jumped up to 4% intraday after the FMCG giant reported a stronger-than-expected June quarter.
By the numbers:
- Net profit: ₹958.7 crore, up 48% YoY
- Revenue: ₹6,378.2 crore, up 25% YoY
- EBITDA margin: Improved to 25.9%, from 24.5% a year ago.
What worked: volume growth was the biggest driver. Domestic sales rose 25%, while exports jumped 35.6% from last year. Every major product category, from chocolates and coffee to Maggi and milk products, delivered double-digit growth.
“General Trade continued to deliver strong double-digit growth across town classes, with rural markets leading the momentum. Rural distribution touchpoints expanded during the quarter, strengthening direct reach and improving the quality of coverage,” said Manish Tiwary, Chairman and Managing Director of Nestlé India.
Zoom out: a recent Goldman Sachs report suggested that India's FMCG sector could be headed for its strongest year of growth since FY23. The earnings momentum to continue through the FY27 despite concerns over crude oil prices, inflation and monsoon conditions.
Meanwhile, FMCG companies had already signalled stable demand in their pre-quarter business updates. Lower crude oil prices, after tensions in West Asia eased, supported the sector. Going forward, companies will keep a close watch on the monsoon and any impact from El Niño.
