Nestlé India said it recorded its strongest quarterly sales growth in almost a decade, aided by double-digit volume gains and broad-based demand across categories. The company’s shares surged.
The maker of Maggi noodles and KitKat chocolates posted a 26% rise in standalone net profit to ₹1,114 crore in the March quarter from a year earlier, while revenue from operations climbed 22.6% to ₹6,747.7 crore, the company said in a stock exchange filing on Tuesday.
“We remained focused on the fundamentals and executed with resilience, delivering double-digit, volume-led growth alongside strong market share gains,” Manish Tiwary, chairman and managing director of Nestlé India, said in the filing. Tiwary added that the company will be focussed on consumer centricity, penetration-led volume growth, reinvestment behind brands and capacity, and accelerating tech-led sales and operations.
Earnings before interest, taxes, depreciation and amortization rose 27.6% to ₹1,771.6 crore, with the Ebitda margin at 26.3%. Domestic sales increased 23.1% as advertising spending jumped 50% from a year earlier.
The company said its integrated approach delivered a strong scale-up in total reach across geographies. Nestlé said it has the highest reach increase among peers, driven primarily by the rural markets, expanding its presence to about 216,000 villages.
“All product groups contributed to growth, with confectionery and beverages delivering high double-digit momentum, while Maggi-led prepared dishes saw strong volume expansion and milk and nutrition posted steady growth," said Meet Mewada and Somil Popat, analysts at Sunrise Gilts & Securities Pvt. Ltd. “Looking ahead, El Niño-related weather volatility could create mixed demand conditions, with rural consumption and out-of-home categories such as confectionery and beverages vulnerable to irregular rainfall patterns.”
Nestlé India shares gained 7.27% to ₹1,379.90 at the close on the National Stock Exchange, off a 52-week high of ₹1,396 on Tuesday. The company recommended a final dividend of ₹5 per share for FY26.
Cocoa, coffee prices
Nestle said the prices of its key raw materials like coffee and cocoa prices have reduced. Coffee prices continue to trend lower and cocoa prices remain subdued, it said.
“Wheat has been affected by unseasonal rains in April, resulting in a delayed harvest and lower quantity and quality. Milk prices have firmed and are expected to remain elevated through the summer lean season,” the company said.
Nestlé said its milk products and nutrition product group “showed resilience, delivering steady growth” in the fourth quarter. The company introduced larger pack sizes to expand portfolio accessibility and value.
The prepared dishes and cooking products group including products like Maggi reported a “volume-driven growth, fuelled by engaging urban consumers and expanding rural reach,” Tiwary said.
Powdered and liquid beverages reported high double-digit growth. The company credits this to increased coffee penetration and accelerated premiumization. Confectionery products including KitKat and Munch grew at a “high double-digit pace in both value and volume,” the company said.
The pet food business with brands Purina and Friskies reported high double-digit growth, driven by a strong innovation pipeline to expand penetration and trials and wider distribution.
