Newsletter
Nestlé India served a strong quarter with high single-digit volume growth and record domestic sales, beating street estimates. The stock gained over 3% following the results.
Note: this was the company’s highest-ever domestic sales quarter,
By the numbers:
- Revenue up 10.6% at ₹5,644 crore vs ₹5,104 crore (YoY)
- Net profit at ₹753 crore, slightly below last year’s ₹986 crore but above expectations
Rising input costs, especially in edible oils punhced margins a bit, at 21.9%, down 100 basis points from last year.
What worked: strong demand for everyday favourites like Maggi, Nescafé, and KitKat powered growth across three of its four categories.
Why it matters: beating forecasts in a tough cost environment shows Nestlé’s deep distribution and pricing power. The company is also banking on cooling milk and coffee prices post-festive season to ease cost pressures.
Zoom out: India’s FMCG sector is finding its rhythm again after months of rural slowdown. With inflation cooling and festive demand kicking in, brands like Nestlé, HUL, and Britannia are seeing steady pantry restocking.
