Nestlé India Ltd. reported its Q2FY26 earnings on Thursday, October 16, registering high-single-digit volume growth domestically and the highest-ever domestic sales in any quarter.
Key Highlights of Q2FY26
- Domestic Sales: Nestlé India’s domestic business saw double-digit growth, driven by three out of four product categories, marking a record for the company.
- Net Profit: ₹753 crore, down 24% from ₹986 crore in Q2FY25, but above CNBC-TV18’s poll estimate of ₹710 crore.
- Revenue: ₹5,644 crore, up 10.6% year-on-year (vs ₹5,104 crore in Q2FY25), slightly above poll projections of ₹5,285 crore.
- EBITDA: ₹1,237 crore, up 6% YoY from ₹1,167.7 crore.
- EBITDA Margin: 21.9%, down 100 basis points from last year and slightly below the poll expectation of 22.1%.
Following the earnings announcement, Nestlé India shares rose 3.31% to ₹1,261.80 in Thursday’s trading session.
Management Commentary and Market Outlook
Manish Tiwary, Chairman and Managing Director of Nestlé India, highlighted key trends impacting the FMCG sector:
- Milk Prices: Expected to soften after the festive season with the onset of the flush season.
- Coffee Prices: Anticipated to stabilize and possibly decrease due to normal upcoming crops in Vietnam and India.
- Cocoa: Global supply-demand expected to balance, following lower demand over the past two years.
- Edible Oils: Prices likely to remain firm and may rise further amid tight global supply-demand conditions.
Tiwary also noted the positive impact of recent GST rate amendments:
“The revisions are expected to stimulate consumption, improve affordability, and support growth across the FMCG sector. We are actively collaborating with partners, distributors, wholesalers, and retailers to pass on these benefits to consumers across our product portfolio.”
Conclusion
Nestlé India’s Q2FY26 performance reflects resilient domestic demand, efficient cost management, and strategic adaptation to commodity price fluctuations. While net profit declined YoY, the record domestic sales and robust volume growth underscore strong operational execution and growth potential in the Indian FMCG market.
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