FMCG major Nestlé India Ltd has announced its financial results for the July–September quarter of FY26 on October 16, 2025, reporting a mixed performance marked by resilient revenue growth and moderated profitability.
The company’s consolidated net profit fell 17% year-on-year to ₹743 crore, compared to ₹899.5 crore in the same quarter last year. However, revenue from operations saw an 11% YoY increase, rising to ₹5,643 crore from ₹5,074.76 crore a year ago.
Despite higher input costs and a marginal contraction in operating margins, Nestlé India maintained a steady growth trajectory supported by strong domestic demand and strategic product expansion across categories.
Robust Domestic Sales and Segment Performance
Nestlé India recorded its highest-ever domestic sales in any quarter, reaching ₹5,411 crore, up 10.8% YoY. According to Chairman and Managing Director Manish Tiwary, this performance was “led by volume growth across key product segments,” with three out of four product groups registering strong double-digit expansion.
The company also witnessed an exports surge of 14.4%, contributing ₹219.21 crore to total revenue, driven by rising global demand for MAGGI noodles, NESCAFÉ, KITKAT, and MILKMAID products.
Segment-Wise Highlights
E-commerce: The company reported robust growth in the quick commerce segment, aided by festive campaigns, platform partnerships, and new product launches that improved consumer reach.
Organised Trade: Strong festive tie-ins and portfolio innovations fuelled broad-based growth across categories, further solidifying Nestlé India’s retail footprint.
Out-of-Home (OOH): The brand expanded its innovation footprint by launching the ‘MADE WITH KITKAT’ range in collaboration with chefs and dessert chains, enhancing its presence in newer consumption occasions.
Exports: Nestlé expanded its international offerings by introducing NESCAFÉ Sunrise in the UAE, Saudi Arabia, Singapore, and New Zealand, while also rolling out MILKMAID Doypack in Sri Lanka.
Financial and Operational Metrics
Nestlé India’s EBITDA for Q2 FY26 stood at ₹1,237 crore, up 6% year-on-year, while the EBITDA margin contracted slightly to 21.9%, compared to 22.8% in the same period last year.
Total expenses rose 12.9% to ₹4,616.73 crore, reflecting continued inflationary pressures on input materials, especially in edible oils and packaging.
Nevertheless, management remains optimistic about cost stabilisation in the coming quarters, citing an expected softening of milk and coffee prices post the festive season and a more balanced global supply-demand outlook for cocoa.
Management Commentary and Market Outlook
CMD Manish Tiwary expressed confidence in the company’s growth momentum, highlighting that “domestic sales grew at a double-digit rate, led by volume performance.” He also noted that Nestlé India continues to work closely with distributors and retailers to pass on the benefits of recent GST amendments, which are anticipated to boost affordability and spur consumption in the FMCG sector.
The management expects favourable commodity trends—including the normalisation of coffee and milk prices and stable demand for confectionery and packaged foods—to support earnings recovery in the coming quarters.
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- HDFC Life Insurance Q2 Results Highlights: Profit Up 3%, Net Premium Income Rises by 14%
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Conclusion
Nestlé India’s Q2 FY26 results reflect a period of sustained revenue growth and resilient domestic demand, despite temporary margin pressures. The record-breaking domestic sales, product innovation, and continued investment in e-commerce and exports underline the company’s strong fundamentals and adaptability in a dynamic FMCG environment.
As one of India’s leading consumer goods companies, Nestlé India remains poised to leverage festive consumption trends and long-term growth drivers across categories like noodles, beverages, dairy, and confectionery.
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