India: Packaged food major Nestle India, the maker of household brands like Maggi and Nescafé, reported a mixed bag of financials for the first quarter of FY26. While revenue continued to grow steadily, profit took a noticeable hit amid rising costs.
For the quarter ending June 30, 2025, Nestle India’s consolidated net profit fell 13.4% YoY to ₹647 crore, compared to ₹747 crore in the same quarter last year. The company attributed this decline to rising raw material costs and increased expenses tied to its aggressive manufacturing expansion.
On the flip side, revenue from operations rose 6% year-on-year to ₹5,096 crore, up from ₹4,814 crore in Q1FY25. This growth was mainly driven by solid performance in both domestic and export markets.
Domestic & Export Growth Stays Strong
Domestic sales saw a 5.5% YoY growth, climbing to ₹4,860 crore from ₹4,608 crore. Export sales also jumped by 16% YoY, reaching ₹214 crore compared to ₹184 crore last year.
Nestle’s total income for Q1FY26 increased 5% to ₹5,100 crore, while product sales rose to ₹5,074 crore from ₹4,793 crore. Other operating revenue remained stable at ₹22 crore, marginally higher than ₹21 crore a year ago.
However, other income declined sharply to just ₹4 crore, a steep drop from ₹39 crore last year, adding pressure on overall profitability.
Stock Falls After Results Announcement
The results, which were announced during market hours, triggered a 4.5% drop in Nestle India’s share price, closing at ₹2,341.55 on the BSE.
Leadership Change: Manish Tiwary to Take Charge
In a key leadership update, Nestle India announced the appointment of Manish Tiwary as Chairman and Managing Director, effective August 1, 2025. He will succeed Suresh Narayanan, who is set to retire on July 31 after a successful tenure.
Why Profit Dropped?
The company pointed out several factors behind the dip in profits:
Elevated input prices across key commodities
Higher operational costs due to large-scale manufacturing expansion in the last 7–8 months
Increased finance costs, driven by borrowings from commercial banks to manage short-term cash flow needs
That said, there were some positive signals — prices of edible oil and cocoa are stabilizing, coffee prices are trending downward, and milk prices rose only modestly, which could ease cost pressures in the coming quarters.
Category-Wise Performance: Maggi, Coffee, and Pet Food Shine
Here’s a breakdown of how Nestle’s various product segments performed:
Powdered & Liquid Beverages: Strong double-digit growth, driven by brands like Nescafé
Prepared Dishes & Cooking Aids: Maggi noodles bounced back with solid double-digit volume growth
Confectionery: Saw robust double-digit growth backed by higher volume sales
Milk Products & Nutrition: Performance was mixed — some products grew, while others remained flat
Breakfast Cereals: Continued high double-digit growth
Pet Food: Strong momentum, especially in the Cat Food segment
E-Commerce: Contributed 12.5% to domestic sales, powered by quick commerce and new launches
Out-of-Home Business: Delivered consistent double-digit growth, making it the fastest-growing vertical within Nestle’s Beverages and Foods portfolio