Nestle India Q2 FY26 Results: Profit Falls 23.6%, Revenue Rises

16 Oct 2025 , 12:32 PM

Nestle India reported a 23.6% year-on-year (YoY) drop in standalone net profit to ₹753.2 crore for the July–September quarter of FY26. Revenue from operations grew 10.6% YoY to ₹5,643.6 crore. It was supported by robust domestic demand and double-digit growth across key product categories.

Following the results, Nestle India’s shares rose 3.3%, trading around ₹1,262 on the NSE during the afternoon session.

Domestic sales of the company climbed 10.8% YoY to ₹5,411 crore. This marks the company’s highest-ever quarterly revenue in India. Chairman and Managing Director Manish Tiwary said, “Three out of four product groups delivered strong, volume-led double-digit growth.” He also noted that the recent GST rate revisions are likely to boost consumption and affordability across categories.

Nestle’s confectionery division saw continued momentum, led by KITKAT, which remains the biggest growth driver and helped India maintain its status as the second-largest KITKAT market globally. Other brands like MUNCH and MILKYBAR also recorded high double-digit growth, supported by better rural distribution.

The powdered and liquid beverages segment, led by NESCAFÉ, reported strong double-digit growth and higher market share. The prepared dishes and cooking aids segment also saw double-digit gains due to higher volumes, while the milk products and nutrition category showed mixed performance.

Nestle India’s EBITDA margin stood at 22% of sales for Q2 FY26. Earnings per share (EPS) came in at ₹3.90, compared with ₹3.88 in the same period last year, excluding the one-time income of ₹290.8 crore from a divestiture recorded previously. The decline in net profit primarily reflects the absence of exceptional gains seen in the prior year.

Nestle expects milk prices to soften after the festive season as the flush season begins, while coffee prices may ease with normal crop expectations in India and Vietnam. The cocoa market is likely to stabilize after recent demand corrections, though edible oil prices may remain elevated due to tight global supplies.