Packaged food giant Nestlé India Ltd reported a 13.4 per cent year-on-year fall in consolidated net profit for the June quarter (Q1FY26), impacted by elevated input costs and finance expenses. The company’s net profit came in at Rs 646.6 crore, down from Rs 746.6 crore in the year-ago period and below analyst expectations of around Rs 751 crore.
The FMCG major posted 5.9 per cent revenue growth to Rs 5,096.2 crore, supported by volume-led gains in core categories such as prepared meals, beverages, and confectionery. However, the bottom line was dented by the rising cost of cocoa, coffee, and finance charges, the company said in an exchange filing.
Nestlé India Q1FY26 – Key Financial Highlights
Consolidated Net Profit: Rs 646.6 crore (↓ 13.4% YoY)
Standalone Net Profit: Rs 659.2 crore (↓ 11% YoY)
Revenue from Operations: Rs 5,096.2 crore (↑ 5.9% YoY)
Domestic Sales: Rs 4,860 crore (↑ 5.5% YoY)
Export Sales: Rs 213.95 crore (↑ 15% YoY)
Nestlé India’s domestic revenue stood at Rs 4,860 crore, up 5.5 per cent YoY, while exports surged 15 per cent to Rs 213.95 crore. On a standalone basis, net profit declined 11 per cent YoY to Rs 659.2 crore.
CMD Suresh Narayanan, in a statement, said, “The quarter was impacted by elevated commodity prices and higher operational costs due to our manufacturing expansion. Also, temporary financing from banks led to higher finance costs.”
He added that price trends for cocoa and edible oils have now stabilised, coffee prices are expected to stay low, and milk prices may ease as monsoon improves supply.
Manish Tiwary to take over
The board has approved the appointment of Manish Tiwary as the new Chairman and Managing Director, effective August 1, 2025. He will succeed Suresh Narayanan, who will retire on July 31. This leadership change comes as part of a broader management reshuffle across India’s consumer goods sector amid muted growth and evolving investor expectations.
Despite margin pressure, the company reported robust volume growth across categories. Flagship products such as NESCAFÉ Classic, NESCAFÉ Sunrise, and NESCAFÉ GOLD recorded strong performance. KitKat was the standout performer with double-digit growth, especially in rural and semi-urban (Rurban) markets.
Nestlé also said its pet food business, particularly the cat portfolio, continued to see “strong traction”.
Following the results, Nestlé India’s share price fell 5 per cent to Rs 2,325.60 on the NSE, making it the top loser on the Nifty 50 index as of Thursday afternoon.
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