Nestlé India has reported a mixed set of financial results for the first quarter, with volume-led growth returning to most product categories despite margin pressures from elevated input costs and higher operational expenses.

Sales Growth and Performance

The company reported total sales of ₹5,074.00 crore for Q1, representing a 5.9% year-on-year increase. Domestic sales grew by 5.5%, indicating a recovery in consumer demand. Notably, seven out of Nestlé's twelve top brands achieved double-digit growth during the quarter.

Category-wise Performance

Powdered and Liquid Beverages

This category emerged as a significant growth driver, registering strong double-digit growth. NESCAFÉ further solidified its leadership in the coffee category, gaining additional market share. The brand's strategy of offering affordable packs while expanding its premium segment with NESCAFÉ Gold and NESCAFÉ Roastery proved successful.

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 rates.

Confectionery

The Confectionery category 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. MUNCH and MILKYBAR also posted strong growth figures.

Milk Products and Nutrition

This category showed mixed results, with some segments growing while others experienced muted performance. MILKMAID delivered single-digit growth, while the Growing Up Milk segment continued to gain momentum.

Financial Highlights

Challenges and Outlook

The quarter was impacted by elevated commodity prices across the portfolio, leading to higher input costs. The company also faced increased operational expenses due to significant manufacturing expansion over the past 7-8 months. Additionally, higher finance costs resulted from borrowing to fund temporary operational cash-flow requirements.

However, the company noted stabilizing prices for edible oil and cocoa, a declining trend in coffee prices, and a stabilizing to modest increase in milk pricing.

E-commerce and Out-of-Home Business

E-commerce maintained its growth momentum, contributing 12.5% to domestic sales, driven by Quick Commerce and new product launches. Nestlé India's Out-of-Home business consistently grew at double-digit rates, emerging as the fastest-growing segment across the company's Beverages and Foods portfolio.

Management Commentary

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."

As Narayanan concludes his tenure as Chairman and Managing Director, he expressed confidence in the company's future growth trajectory under the incoming leadership of Manish Tiwary, who will assume the role from August 1, 2025.

Looking Ahead

While facing near-term challenges from input cost pressures, Nestlé India appears well-positioned for growth with its strong brand portfolio and strategic initiatives in e-commerce and out-of-home channels. The company's focus on volume-led growth and market share gains in key categories bodes well for its future performance.

Nestlé India Limited , a leading food and beverage company, has announced significant corporate actions and reported robust financial performance for the first quarter of 2025-26.

Bonus Share Issue and Increased Authorized Share Capital

At an Extraordinary General Meeting (EGM) held on July 24, 2025, Nestlé India's shareholders approved two key resolutions:

1. The issuance of bonus equity shares in a 1:1 ratio, meaning shareholders will receive one bonus share for every existing share held. This will be accomplished by capitalizing up to ₹96.42 crore from the company's retained earnings.

2. An increase in the authorized share capital from ₹100.00 crore to ₹200.00 crore, along with corresponding amendments to the company's Memorandum of Association.

The EGM was conducted through video conferencing and chaired by Suresh Narayanan, Chairman and Managing Director. The voting results will be submitted to stock exchanges separately.

Q1 2025-26 Financial Highlights

For the quarter ended June 30, 2025, Nestlé India reported:

Business Performance

Suresh Narayanan, Chairman and Managing Director, commented on the results, stating that the company delivered balanced growth in three out of four product group categories. Key highlights include:

• Prepared Dishes and Cooking Aids, Powdered and Liquid Beverages, and Confectionery categories returned to volume-led growth.
• Seven out of twelve top brands grew at double-digit rates.
• The MAGGI portfolio registered strong growth, with positive consumption trends.
• NESCAFÉ further solidified its leadership in the coffee category.
• The Confectionery category saw high double-digit growth, driven by KITKAT, MUNCH, and MILKYBAR.
• E-commerce maintained growth momentum, contributing 12.50% to domestic sales.
• The Out-of-Home business consistently grew at double-digit rates.

Challenges and Outlook

The quarter was impacted by elevated commodity prices and higher operations costs due to manufacturing expansion. However, the company noted stabilizing prices for edible oil and cocoa, a declining trend in coffee prices, and stabilizing milk prices.

Looking ahead, coffee prices are expected to remain range-bound at current lower levels. Cocoa and Edible Oil prices have stabilized, while milk prices are anticipated to decrease with the onset of a favorable monsoon.

Leadership Transition

Suresh Narayanan will conclude his tenure as Chairman and Managing Director on July 31, 2025. Manish Tiwary will assume the role of Chairman and Managing Director of Nestlé India effective August 1, 2025.

Nestlé India continues to demonstrate resilience and adaptability in a challenging market environment, positioning itself for sustained growth and shareholder value creation.