Nestlé India Delivers Powerful 25.4% Sales Growth in Q1 FY 2026-27 Powered by Volume Expansion and Premiumisation

Nestlé India Limited has announced its un-audited consolidated and standalone financial results for the first quarter ended 30th June 2026. The FMCG giant delivered a stellar performance for the quarter, reporting total sales of INR 6,363.3 crore-marking a robust 25.4% growth compared to INR 5,073.96 crore in the corresponding period of the previous year.

The surge in performance was primarily volume-driven, with domestic sales jumping 25.0% to INR 6,073.05 crore, while export sales expanded by an impressive 35.6% to reach INR 290.22 crore despite prevailing geopolitical headwinds.

Strong Profitability and Margin Expansion

Profitability metrics saw significant gains during the quarter:

Profit After Tax (PAT): Consolidated net profit for the quarter surged by 48.3% to INR 958.68 crore, up from INR 646.59 crore in Q1 FY 2025-26. Standalone profit stood at INR 975.12 crore, registering a 47.9% increase over the previous year's corresponding quarter.

EBITDA: Operating performance remained strong, with Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) reaching INR 1,538.13 crore, delivering a healthy EBITDA margin of 24.2%.

Cost Efficiencies: The cost of materials consumed as a percentage of sales improved to 42.9%, compared to 45.0% in the corresponding quarter of the previous year, supported by operational cost savings and raw material optimization.

Earnings Per Share (EPS): Standalone EPS for the quarter reached INR 5.06 (face value of Re 1 per share), compared to INR 3.42 in Q1 FY 2025-26.

In addition to operational growth, the company announced that the Special Dividend 2026 of INR 2.00 per equity share (approved on 3rd July 2026) will be paid starting 30th July 2026, alongside the final dividend of INR 5.00 per equity share for the financial year 2025-26.

Segment-Wise Business Highlights

All four major product groups achieved strong double-digit growth during the quarter:

Confectionery: KITKAT continued its strong momentum, gaining market share and driving volume-led double-digit growth. Key growth levers included higher brand investments, premiumisation, and targeted consumer partnerships, such as the KITKAT collaboration with One Piece.

Powdered and Liquid Beverages: Marked its 20th consecutive quarter of double-digit growth, led by high double-digit volume expansion in NESCAFÉ CLASSIC and NESCAFÉ SUNRISE, alongside premium growth in NESCAFÉ GOLD. The Ready-to-Drink (RTD) segment scaled rapidly. Additionally, NESPRESSO expanded its retail footprint with a new pavilion launch in Bengaluru.

Prepared Dishes and Cooking Aids: Driven by MAGGI, the segment saw expanded market penetration in both urban and rural areas. Key highlights include the national roll-out of MAGGI Spicy Green Chilli, seasonal monsoon flavours (Tandoori Masala and Curry Masala), and the launch of the new MAGGI Veg Atta with Masala Tastemaker.

Milk Products and Nutrition: Registered broad-based volume growth across key brands. The science-based infant nutrition portfolio continued to perform well sequentially, while EVERYDAY returned to positive momentum in priority markets.

Pet Food & Out-of-Home: Petcare recorded double-digit growth following portfolio additions like FELIX Gravy Lover and PRO PLAN Cat. Nestlé Professional maintained strong volume momentum in the out-of-home space with innovations such as NESCAFÉ Duo Gusto and low/zero-sugar options.

Channel Performance & Sustainability Initiatives

General Trade delivered strong double-digit growth led by rural markets, where direct reach expanded through sub-distributor technology adoption via Distributor Management System (DMS) integration. In digital channels, Quick Commerce emerged as a standout growth engine, driven by platform-tailored packs and high availability.

On the international front, Nestlé India was recognized with 4-Star Export House status under the Make in India initiative, expanding its export footprint for MAGGI SKUs across Europe and Canada, as well as launching NESCAFÉ Sunrise in Lebanon following successful introductions in the UAE and Saudi Arabia.

"We delivered a strong quarter with sales growth of 25.4% led by volume growth... During the quarter, we further accelerated operational cost savings, and continued to step up investments behind our brands with advertising spends increasing by over 40%." - Mr. Manish Tiwary, Chairman and Managing Director, Nestlé India.

On the sustainability front, Nestlé India highlighted ongoing investments in a climate-resilient dairy supply chain around its Moga plant in Punjab. Interventions include total mixed ration feeding, automated milking systems, energy-efficient operations, and biodigesters to turn farm waste into renewable energy and soil nutrients.

Commodity Outlook

Looking ahead, Nestlé India noted a mixed outlook across key input costs:

Coffee: Expected to remain well supplied due to higher harvests in Brazil and Vietnam, though short-term market volatility may persist.

Cocoa and Sugar: Remain under inflationary pressure due to erratic rainfall in cocoa-producing regions and lower-than-expected sugar crop estimates linked to El Niño.

Edible Oils, Wheat, & Milk: Edible oils remain stable at elevated levels, while wheat and milk are expected to stay range-bound. Dairy-based protein inputs face continued upward cost pressure as global demand outpaces production.

Source : Equity Bulls

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NestleIndia Q1FY27 Q1FY2027 ResultUpdate