Nestlé India Q1FY26 Net Profit Falls 13.4%; Revenue Rises 5.86%

25 Jul 2025 , 11:23 AM

Nestlé India reported a dip in its quarterly profit for the June 2025 quarter, with margins coming under pressure due to elevated commodity prices and rising operating costs. The company posted a net profit of ₹646.59 crore, registering a 13.4% decline compared to ₹746.6 crore in the same period last year.

Revenue from the sale of products stood at ₹5,073.96 crore, marking a 5.86% growth from ₹4,792.97 crore a year ago. According to the management, the quarter was weighed down by higher prices across raw materials and increased operating expenses, which stemmed from recent manufacturing expansions.

“The last few months have seen significant additions to our production footprint. Naturally, that comes with higher operating costs. On top of that, commodity inflation across categories added to the pressure,” said Chairman and MD Suresh Narayanan. The company also faced increased finance costs, as it borrowed from commercial banks to manage temporary cash flow requirements.

Narayanan pointed out early signs of softening in input prices. Edible oil and cocoa prices are stabilising, while coffee has started showing a downward trend. Milk prices remain largely steady, with only a mild increase.

Nestlé’s total expenses rose 9.25% during the quarter to ₹4,199.73 crore, in line with cost inflation and expansion-driven spending. Domestic sales were up 5.45% year-on-year, coming in at ₹4,860.01 crore, compared to ₹4,608.50 crore last year. The company also saw a 16% jump in exports, which reached ₹213.95 crore.

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