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.

Nestle India is poised to unveil its quarterly results on Thursday, with analysts anticipating moderate growth despite ongoing margin pressures. The food giant's performance is expected to reflect a gradual recovery in rural demand, potentially outpacing urban areas.

Revenue and Profit Projections

According to Bloomberg estimates, Nestle India is forecasted to achieve:

The company's EBITDA margin is expected to stand at 23.10%.

Volume Growth and Pricing Strategy

Analysts suggest that the rural recovery is driving a gradual increase in volume growth, projected to reach the low to mid-single digits. To counter margin pressure from high input costs, particularly in palm oil and wheat, Nestle India has implemented significant price hikes. The volume growth is estimated at around 3%, with price increases of approximately 3%, mainly affecting coffee and premium chocolate products.

Factors Influencing Performance

Several key factors are expected to impact Nestle India's performance:

1. Declining Food Inflation: This could potentially ease some of the cost pressures faced by the company.
2. Potential Income Tax Cuts: If implemented, these could support consumption recovery.
3. Palm Oil Duty Reduction: The recent cut in palm oil duty from 20% to 10% is anticipated to benefit raw material costs.

Analyst Perspectives

Analyst ratings on Nestle India stock vary:

• Goldman Sachs maintains a Neutral stance with a target price of Rs 2,335.00.
• Nuvama has issued a Buy rating with a target price of Rs 2,825.00.

The divergence in analyst opinions reflects the complex market dynamics and varying expectations for Nestle India's growth trajectory.

Looking Ahead

As Nestle India prepares to release its quarterly results, investors and market watchers will be keen to see how the company has navigated the challenges of input cost pressures while capitalizing on the recovering rural demand. The balance between volume growth and pricing strategy will be crucial in determining the company's performance in this competitive landscape.