Nestlé India Limited has announced its financial results, showcasing a steady performance with volume-led growth across multiple product categories. The company reported a total sales growth of 5.9%, with domestic sales increasing by 5.5%.

Key Financial Highlights

The company achieved a 3% growth in domestic volume, aligning with market estimates of 2-3%. This performance met analyst expectations, demonstrating Nestlé India's resilience in a challenging market environment.

Category-wise Performance

Nestlé India reported balanced growth across three of its four product group categories:

1. Powdered and Liquid Beverages: This category remained a significant growth driver, registering strong double-digit growth. NESCAFÉ further solidified its leadership in the coffee category by gaining additional market share.

2. Prepared Dishes and Cooking Aids: The category returned to volume growth, with MAGGI noodles recording double-digit growth. Masala-Ae-Magic also demonstrated strong performance with double-digit growth.

3. Confectionery: The segment saw high double-digit growth, driven by robust underlying volume growth. KITKAT emerged as the largest growth driver, achieving double-digit growth, particularly in RUrban markets.

4. Milk Products and Nutrition: This category showed mixed performance, with certain segments displaying growth while others had muted performance.

Business Highlights

• E-commerce maintained its growth momentum, contributing 12.5% to domestic sales.
• The Out-of-Home business consistently grew at double-digit rates.
• Nestlé Professional achieved a milestone with 1,000 Retail One kiosks operational across India.
• The Pet Food business witnessed strong performance, primarily driven by the Cat portfolio.

Management Commentary

Mr. Suresh Narayanan, Chairman and Managing Director of Nestlé India, commented on the results: "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."

He also noted that the quarter was impacted by elevated consumption prices across the commodity portfolio and higher operations costs due to significant manufacturing expansion in recent months.

Future Outlook

While the company faces challenges from commodity prices and operational costs, there are positive signs on the horizon:

• Coffee prices are expected to remain range-bound at current lower levels.
• Cocoa and Edible Oil prices have stabilized.
• Milk prices are anticipated to decrease with the onset of a favorable monsoon and flush season.

As Nestlé India continues to navigate these market conditions, its focus on volume-led growth and strategic expansion in key categories positions it well for future growth.

Leadership Transition

The company also announced a leadership change, with Mr. Manish Tiwary set to assume the role of Chairman and Managing Director of Nestlé India from August 1, 2025, following Mr. Suresh Narayanan's retirement on July 31, 2025.

Nestlé India's results demonstrate the company's ability to maintain growth momentum despite market challenges, setting a positive tone for the rest of the financial year.

Nestlé India , the Indian subsidiary of the global food and beverage giant, has reported its latest financial results for the first quarter ended 30th June 2025.

Q1 FY26 Performance

Nestlé India achieved total sales of INR 5,074.00 crore, representing a 5.9% growth compared to the same period last year. The company's domestic sales grew by 5.5% to INR 4,860.00 crore.

Key Financial Highlights

Product Category Performance

The company achieved volume-led growth in three out of four product categories:

• Prepared Dishes and Cooking Aids
• Powdered and Liquid Beverages
• Confectionery

Notably, seven out of twelve top brands recorded double-digit growth.

Challenges and E-commerce Growth

The quarter was impacted by elevated commodity prices and higher operational costs due to manufacturing expansion. Despite these challenges, e-commerce continued to show strong performance, contributing 12.5% of domestic sales.

Leadership Change

In a significant development, the Board has appointed Mr. Manish Tiwary as Chairman and Managing Director, effective 1st August 2025. Mr. Tiwary will succeed Mr. Suresh Narayanan, who is set to retire on 31st July 2025.

Dividend Announcement

The company has declared a final dividend of INR 10.00 per equity share for the financial year 2024-25, which will be paid from 24th July 2025.

Conclusion

Nestlé India's Q1 FY26 results demonstrate resilience in a challenging economic environment, with modest growth across key metrics. The company's focus on volume-led growth in core product categories and the strong performance of its e-commerce channel are positive indicators. As Nestlé India prepares for a leadership transition, investors and industry observers will be keenly watching how these strategies evolve under the new management.