Synopsis: FMCG major’s share gained attention after reporting a 49 percent YoY jump in Q1 FY27 profit to Rs 975 crore, driven by strong sales growth, better operating performance, and healthy demand across key product categories.
The share of this company, which is a major food and beverage company operating as a subsidiary of Swiss-based Nestlé S.A., featuring iconic brands like Maggi, Nescafé, and KitKat, gained focus after posting Q1 numbers
With a market capitalization of Rs 2,88,836 crore, Nestle India Ltd’s share on Wednesday made a day high of Rs 1,509.75 per share, up by 3.9 percent, from its previous close price of Rs 1,453 per share. The share of this company has given 17.32 percent over the last year.
Result Overview
QoQ View
On a QoQ basis, sales decreased by 5.5 percent to Rs 6,378 crore in Q1 FY27 from Rs 6,748 crore in Q4 FY26, and EBIDT decreased by 13.2 percent to Rs 1,538 crore in Q1 FY27 from Rs 1,772 crore in Q4 FY26. Accompanied by a net profit decrease of 12.5 percent to Rs 975 crore in Q1 FY27 from Rs 1,114 crore in Q4 FY26, resulting in an EPS decrease of 12.5 percent to Rs 5.06 per share in Q1 FY27 from Rs 5.78 per share in Q4 FY26.
YoY View
The sales grew by 25 percent YoY to Rs 6,378 crore in Q1 FY27 from Rs 5,096 crore in Q1 FY26, and EBIDT grew by 40 percent to Rs 1,538 crore in Q1 FY27 from Rs 1,100 crore in Q1 FY26. Accompanied by a net profit growth of 49 percent to Rs 975 crore(including an exceptional item) in Q1 FY27 from Rs 659 crore in Q1 FY26, resulting in an EPS growth of 48 percent to Rs 5.06 per share in Q1 FY27 from Rs 3.42 per share in Q1 FY26.
Q1 Key Highlights
- Strong financial performance: Nestlé India reported a strong start to Q1 FY27, with sales rising 25.4 percent to Rs 6,363.3 crore, driven by healthy volume growth across its portfolio. The company posted an EBITDA margin of 24.2 percent, while net profit jumped 47.9 percent YoY to Rs 975.1 crore, reflecting better operating performance.
- Growth across businesses: All four major product categories delivered double-digit growth during the quarter. The company also saw strong momentum in e-commerce, quick commerce, organised retail, exports, and rural markets. Exports grew 35.6 percent YoY, while Nestlé Professional and the pet food business also recorded healthy growth.
- New launches and expansion: During the quarter, Nestlé India expanded its product portfolio with new MAGGI flavours, FELIX Gravy Lover and PRO PLAN Cat in pet food, and continued to strengthen its premium coffee business through NESPRESSO expansion. The company also increased its advertising spend by over 40 percent to support brand growth and market expansion.
How Did Nestlé India Achieve 49% Profit Growth in Q1?
Strong sales growth supported profitability
Total sales increased 25.4 percent YoY to Rs 6,363.3 crore, driven by strong volume growth across all four product groups and growth across distribution channels. Export sales also increased 35.6 percent YoY despite global challenges.
Better cost management supported margins
The company improved cost efficiency as the cost of materials consumed as a percentage of sales declined to 42.9 percent from 45 percent in Q1 FY26. Operational savings helped offset pressure from higher commodity costs.
Premium products and new channels boosted growth
Premium offerings such as Nespresso, Nescafé Gold, KitKat, and pet food products supported growth, while Quick Commerce and e-commerce continued to emerge as key growth drivers.
Improved operating efficiency lifted margins
EBITDA increased 39.8 percent YoY to Rs 1,538.1 crore, with the EBITDA margin at 24.2 percent despite a more than 40 percent increase in advertising spends to strengthen brands.
Conclusion
Nestlé India delivered a strong Q1 FY27, supported by healthy volume growth, better operating performance, and strong demand across its key product categories. The company’s focus on premium products, digital channels, and wider distribution helped drive growth, while continued investments in brands strengthened its market position.
Looking ahead, the company expects commodity prices to remain mixed. While coffee supply is likely to improve, prices of cocoa, sugar, and dairy-based proteins may remain under pressure due to weather conditions and strong demand. Despite these challenges, Nestlé India remains focused on managing costs efficiently and sustaining growth in the coming quarters.
About the Company
Nestlé India Limited is the Indian subsidiary of Nestlé, which is a Swiss multinational company. The company is headquartered in Gurgaon, Haryana. The company’s products include food, beverages, chocolate, and confectionery.
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