Shares of Nestlé India surged 3.37% to Rs 1,262.60 on the NSE in Thursday’s session after the FMCG giant reported better-than-expected Q2 FY26 results. The stock gained Rs 41.20 from its previous close of Rs 1,221.40, taking the company’s market capitalization to Rs 2.42 trillion.
The rally came after Nestlé’s revenue and operating margins surpassed Street estimates, even as profit fell on a year-on-year basis.
Earnings snapshot (Q2 FY26):
- Total Sales: Rs 5,630.2 crore, up 10.9% YoY
- Domestic Sales: Up 10.8% YoY, marking the highest-ever quarterly domestic sales
- EBITDA Margin: 22%
- Profit After Tax (PAT): Rs 753.2 crore
- Earnings Per Share (EPS): Rs 3.90 versus Rs 3.88 last year (excluding exceptional gains)
What analysts expected:
According to a CNBC-TV18 poll, Nestlé India was estimated to post a 3.5% revenue growth to Rs 5,285 crore, while EBITDA was expected to rise 0.2% to Rs 1,170 crore with margins around 22.1%, nearly flat YoY. Profit after tax was projected to fall 28% to Rs 710 crore.
The company’s reported performance, therefore, beat revenue and margin forecasts, while PAT came in slightly higher than the consensus estimate.
Management commentary:
Chairman and Managing Director Manish Tiwary credited the strong results to volume-led double-digit growth across three of four product categories. He said,
“Our domestic sales grew at a double-digit rate, reaching Rs 5,411 crore — the highest in any quarter so far. GST rate amendments are expected to boost consumption, affordability, and overall FMCG growth.”
Segment performance highlights:
- Confectionery: Double-digit growth led by KITKAT, which continues to expand rural reach; India is now the second-largest market globally for KITKAT.
- Powdered & Liquid Beverages: High double-digit growth, with NESCAFÉ gaining share and improving household penetration.
- Prepared Dishes & Cooking Aids: Strong growth from MAGGI Noodles and Masala-ae-Magic.
- Milk Products & Nutrition: Mixed performance, with improving trends in select segments.
Key factors to watch:
- GST-led trade transition impact estimated at 350–400 bps.
- Domestic business expected to grow 3–4%, exports 7–10%.
- Margins may see an 80–100 bps impact due to raw material inflation.
- Demand recovery post-GST transition and growth in the pet-care segment to be closely tracked.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions.
