Nestle India slumps as Q1 PAT slides 12% YoY to Rs 659 crore

However, revenue from operations jumped 5.86% to Rs 5,096.2 crore in Q1 FY26, compared to Rs 5,096.2 crore in Q1 FY25.

Total sales stood at Rs 5,074 crore in the June 2025 quarter, up 5.86% from Rs 4,793 crore recorded in the same period a year ago.

During Q1 FY26, domestic sales grew by 5.45% YoY to Rs 4,860 crore, while export sales jumped 15.98% YoY to Rs 213.95 crore.

Profit before tax tumbled 10.76% year on year (YoY) to Rs 900.47 crore in the quarter ended 30 June 2025.

The company?s e-commerce growth was driven by targeted on-platform interventions, strategically aligned with portfolio relevance and the evolving preferences of shoppers.

The firm stated that organized trade saw widespread growth across categories, driven by store expansions and bolstered by effective in-store activations, which enhanced consumer accessibility and strengthened connections with shoppers.

The company?s out of home segment continued to deliver strong growth, establishing itself as a total solution provider for every operator's needs.

The company?s export segment registered high double-digit growth, driven by food categories such as coffee, instant tea, and breakfast cereals, despite commodity headwinds. Additionally, the company launched Masala-Ae-Magic in the United Kingdom.

Nestl?s domestic performance in Q1 FY26 saw strong results across various product groups, particularly in prepared dishes and cooking aids.

The MAGGI portfolio showed robust growth, with consumption trends showing a positive uptick. Both Quick Commerce and RUrban contributed significantly to the overall performance. Notably, products like Double Masala Classic Noodles and the Spicy range (including Spicy Garlic, Spicy Cheesy, Spicy Pepper, and Spicy Manchurian) generated considerable momentum.

In the Milk Products and Nutrition category, MILKMAID posted single-digit growth. The growing up milk segment continued to gain market share, supported by product renovations.

Confectionery growth was fueled by rural acceleration, premiumization, and increased in-home penetration, further supported by Quick Commerce. New product launches, including KITKAT Duo, KITKAT Lemon n Lime, and KITKAT Dark Sharebag, also contributed positively.

The Powdered and Liquid Beverages segment experienced strong performance, particularly with NESCAF? Classic, NESCAF? Sunrise, and NESCAF? GOLD, which achieved double-digit growth, driven by successful cold coffee activations during the summer. NESCAF?s premium portfolio further boosted the development of the coffee market in India, contributing positively to both top-line and bottom-line growth.

Regarding commodity prices, Nestl? India?s outlook indicates that coffee prices are expected to remain stable in the lower range, with the upcoming Vietnam crop projected to be normal. Cocoa and edible oil prices have stabilized and are expected to stay range-bound. Milk prices are anticipated to decrease with the arrival of a favorable monsoon and the flush season.

Suresh Narayanan, chairman and managing director (MD), Nestl? India said, ?I am pleased to inform you that we have delivered a balanced growth in three out of our four product group categories. Prepared Dishes and Cooking Aids, Powdered and Liquid Beverages and Confectionery have bounced back to volume-led growth. Seven out of twelve top brands grew at double-digit.

I would like to extend my gratitude to the resilience and resolve of our employees, the commitment of our sales force, the relentless efforts of our distributors and retailers and the trust of our consumers and shareholders. The quarter was impacted by elevated consumption prices across the commodity portfolio.

Over the past ten financial years, Nestl? India has achieved remarkable progress, with our revenue growing at a CAGR of 10.3%. During this period, profits from operations as a percentage to sales increased by 500 basis points, profit after tax soared by 490%, and sales rose by 150%. Our market capitalization grew 3.9 times, and we achieved a total shareholder return (TSR) CAGR of 17%. These accomplishments would not have been possible without your faith and commitment.

As Narayanan prepares to step down from his role, he expressed his heartfelt thanks to partners, distributors, retailers, and suppliers for their collaboration and support. He also wished success to Manish Tiwary, who will take over as chairman and managing director of Nestl? India, effective 1st August 2025.

Furthermore, Suresh Narayanan will retire from his position as chairman and managing director on 31st July 2025.

Nestl? is the world's largest food and beverage company. It manufactures internationally famous brand names such as Nescaf?, Maggi, Milkybar, Kit Kat, Bar-One, Milkmaid, and Nestea.

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