Nestle India Earnings Summary — Q2 FY2026
Nestle India Achieves Record Domestic Sales with Volume-Led Double-Digit Growth
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 5.5% sequentially in Q1 FY2027.
- Revenue of ₹6,378 Cr is 25.2% higher year-on-year.
- Revenue has compounded at 15.6% annualised over the last 10 quarters.
- Net profit of ₹959 Cr is 48.3% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 18.4% annualised across the period.
- Operating margin stands at 23.9% in Q1 FY2027.
- Operating margin expanded by 252 bps year-on-year.
- Over the last two years operating margin has expanded by 71 bps.
- PBT margin is 20.5%.
- Expense growth of 21.1% remained below revenue growth of 25.2%.
- Operating profit of ₹1,522 Cr is 39.9% higher year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 75/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q3 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 6,378 | 6,748 | 5,667 | 5,644 | 5,096 | 5,504 | 4,780 | 5,104 | 4,814 | 4,600 |
| Expenses | Improving | 4,856 | 4,979 | 4,486 | 4,417 | 4,009 | 4,128 | 3,685 | 3,940 | 3,700 | 3,505 |
| Operating Profit | Improving | 1,522 | 1,768 | 1,181 | 1,227 | 1,087 | 1,376 | 1,095 | 1,164 | 1,114 | 1,095 |
| Operating Margin | Stable | 23.9% | 26.2% | 20.9% | 21.7% | 21.3% | 25.0% | 22.9% | 22.8% | 23.1% | 23.8% |
| Other Income | Volatile | 16 | -18 | 170 | 2 | 4 | 9 | 4 | 190 | 39 | -77 |
| Interest | Improving | 42 | 37 | 28 | 46 | 47 | 38 | 35 | 32 | 32 | 23 |
| Depreciation | Improving | 188 | 205 | 174 | 163 | 157 | 155 | 150 | 122 | 113 | 109 |
| Profit Before Tax | Improving | 1,308 | 1,509 | 1,148 | 1,018 | 888 | 1,192 | 914 | 1,200 | 1,009 | 886 |
| Tax | Volatile | 349 | 398 | 150 | 275 | 241 | 319 | 226 | 301 | 262 | 231 |
| Net Profit | Improving | 959 | 1,111 | 998 | 743 | 647 | 873 | 688 | 899 | 747 | 656 |
| Net Margin | Stable | 15.0% | 16.5% | 17.6% | 13.2% | 12.7% | 15.9% | 14.4% | 17.6% | 15.5% | 14.3% |
Key Takeaways
- Achieved highest-ever quarterly domestic sales of INR 5,411 crore, growing 10.8% YoY.
- Three out of four product groups delivered volume-led double-digit growth, indicating healthy demand.
- KITKAT remains a standout performer, making India the second-largest market for the brand worldwide.
- Significant cost pressure observed as materials consumed as a % of sales rose to 45.8% from 43.6% YoY.
- E-commerce maintained strong momentum, supported by festive season unlocks and new product launches.
- Out-of-Home (OOH) business recorded strong double-digit growth, with India being the fastest-growing market in the Zone.
- New production line for MAGGI Noodles at the Sanand Factory in Gujarat is now operational.
- Bonus shares in the ratio of 1:1 were allotted on August 11, 2025, with EPS figures restated accordingly.
Management Guidance
Management is focused on a penetration-led volume growth strategy and plans to accelerate investments in brands and manufacturing capacity. They expressed a 'Fast, Focused, Flexible' approach to adapt to evolving market dynamics and recent GST rate amendments to drive affordability.
Sentiment Shift
Improving
Despite higher commodity costs, strong volume-led growth across major categories and record topline performance signal robust underlying demand and market share gains.
Outlook
The company anticipates stimulation in consumption and affordability following recent GST rate reductions. Continued focus on rural distribution expansion and e-commerce innovation is expected to drive future growth.
From the Annual Report (Key Quotes)
“Domestic sales grew at a double-digit rate, led by volume growth... domestic sales reached INR 5,411 crore, the highest ever recorded in any quarter.”
“India remains the second largest KITKAT market for Nestlé worldwide.”
“We will invest in growth by accelerating our investments in brands and manufacturing capacity, bringing forth innovations that are bolder, bigger, and better.”
Official Quarterly Documents
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This summary is AI-generated from Nestle India's latest quarterly filing and earnings call. For informational purposes only — not investment advice.