Nestle India Reports 36% Profit Surge in Q2 Amid Stock Decline

Nestle India has announced a remarkable 35.9% year-on-year growth in its consolidated net profit, reaching Rs 1,009.6 crore for the quarter ending September 2026. Revenue from operations also saw a significant increase of 20.3%, totaling Rs 6,788.3 crore. Despite these positive financial results, the company's stock experienced a sharp decline of nearly 7% on Thursday, primarily due to management's warnings about rising inflation, particularly in food prices, and ongoing pressures from commodity costs.

On a standalone basis, Nestle India's net profit increased by 36.2% year-on-year to Rs 1,026.8 crore, with revenue from operations matching the consolidated figures at Rs 6,788.3 crore. This standalone profit surpassed the expectations set in a CNBC-TV18 poll, which estimated profits at Rs 1,018 crore, while revenue figures were closely aligned with the forecast of Rs 6,789 crore.

Chairman and Managing Director Manish Tiwary highlighted that the company achieved broad-based growth across its product categories, driven by robust double-digit volume growth. Total sales rose by 20.5% to Rs 6,782.2 crore, with domestic sales increasing by 20.4%. The company's EBITDA margin stood at 23.8%, despite a significant 46% rise in advertising and marketing expenses as Nestle ramped up its brand investments.

Tiwary acknowledged the reality of rising inflation, particularly in food products, and emphasized the company's commitment to innovation, productivity enhancements, and operational efficiencies to counteract commodity cost pressures. In its commodity outlook, Nestle India indicated that coffee and wheat prices are expected to remain stable, while sugar and edible oil prices have stabilized at high levels. Cocoa prices, however, remain volatile due to weather-related issues in key production areas.

Nestle India also reported strong growth in its e-commerce segment, fueled by the momentum in quick commerce and improved product availability. The organized retail sector showed robust growth across key categories, supported by effective in-store execution and consumer promotions. Additionally, the company's out-of-home business benefited from innovations in beverages and food products, while exports continued to grow at a strong double-digit rate, aided by new product launches and international market expansion.