Nestle India’s quarterly results were quite impressive.
Nestle India, one of the largest FMCG companies in the country, reported a net profit of Rs 975 crore for the first quarter of FY 2027. This is 48 percent more than the profit of Rs 660 crore in the same quarter last year. Nestle said in its regulatory filing that the company’s revenue from operations in this quarter was Rs 6,378 crore, which is 25 percent more than last year’s Rs 5,096 crore. EBITDA for the quarter stood at Rs 1,538 crore, which is 40 percent more than Rs 1,100 crore in the same quarter of the last financial year.
Margin for the quarter increased by 250 basis points to 24.2 percent, compared to 21.6 percent in the first quarter of the last financial year. Nestle said that there is a mixed situation in the commodity market. Coffee supply is expected to remain good due to higher production in Brazil and Vietnam, although there may be short-term volatility due to fund activity and weather-related delays in harvesting in Brazil.
Cocoa and sugar prices are under pressure. Cocoa has been hit by irregular rains in key growing regions, while sugar prices have risen after a lower-than-expected crop was forecast. Uneven monsoon conditions associated with El Nino are also posing risks to the next crop. Edible oil prices remain stable but high, while wheat and milk prices are expected to remain range bound. Protein complexes, including dairy-based proteins, remain under inflationary pressure as demand is increasing faster than supply due to nutrition and protein fortification trends.
Nestle’s performance in different segments
- Prepared dishes and cooking aids: Maggi continued to focus on strengthening brand engagement through exclusive product launches and collaborations. These included a limited-edition Maggi bowl on the QuickCommerce platform and an on-ground merchandise collaboration with Uniqlo.
- Milk products and nutrition: Nestlé’s science-based nutrition products for children have seen continued improvement, driven by efforts to increase trust among parents and healthcare professionals. Daily use milk powder again gained strong momentum in key markets, while products for toddlers continued to achieve strong growth and market share gains.
- Confectionery: The confectionery business continued to perform well in its category, which was largely contributed by increased market penetration. Higher investment in core brands, partnerships like KitKat and One Piece and greater focus on premium products were the main reasons for growth.
- Powder and Liquid Beverages: The segment saw strong volume-based growth (high double-digit) for Nescafe Classic and Nescafe Sunrise, with the premium portfolio led by Nescafe Gold also delivering good performance. Ready-to-drink (RTD) business also grew rapidly in this quarter. This strengthened Nescafe RTD as a key pillar of growth by meeting consumers’ growing demand for indulgence.
Increase in company’s shares
After the quarterly results, Nestle India shares also saw a good rise. If we look at the data, the company’s shares appeared at a 52-week high during the trading session. The company’s shares reached a record level of Rs 1509.75 with a rise of about 4 percent. Whereas a day earlier the shares of the company were at Rs 1453. At 12:40 pm, the company’s shares are trading at Rs 1472.80 with a rise of 1.36 percent. In the current year, the company’s shares have seen a rise of about 14 percent.
