World's Largest FMCG Company's Indian Subsidiary Reports 48% YoY Jump in Q1 FY27 Profit Despite 2% Fall in Share Price

On Thursday, Indian equity benchmark indices traded lower, with the benchmark Nifty 50 index declining 24.50 points, or 0.10 per cent, to 23,971.75. During the same session, Nestle India share price declined 2.37 per cent to Rs 1,458.20. The stock remained in focus after the company announced its financial results for the quarter ended June 30, 2026.

Nestle India Q1 FY27 Financial Performance

Nestle India reported revenue from operations of Rs 6,378.18 crore in Q1 FY27, registering a 25.16 per cent YoY increase from Rs 5,096.16 crore in the corresponding quarter last year. Total income rose 25.49 per cent YoY to Rs 6,400.65 crore from Rs 5,100.33 crore.

Profit before Tax (PBT) increased 47.08 per cent YoY to Rs 1,324.39 crore compared with Rs 900.47 crore in Q1 FY26. Profit after tax (PAT) jumped 47.91 per cent YoY to Rs 975.12 crore from Rs 659.23 crore in the year-ago period. Earnings per share (EPS) increased to Rs 5.06 from Rs 3.42 in the corresponding quarter last year. EBITDA stood at Rs 1,538.13 crore, while the EBITDA margin remained healthy at 24.2 per cent.

Business Performance

The company said total sales increased 25.4 per cent YoY, driven by strong volume growth, while domestic sales grew 25.0 per cent and exports rose 35.6 per cent despite geopolitical headwinds. All four product groups recorded strong double-digit growth during the quarter.

The Confectionery business delivered another quarter of volume-led double-digit growth, supported by premiumisation and e-commerce. The Powdered and Liquid Beverages segment recorded its 20th consecutive quarter of double-digit growth, driven by increased coffee penetration and premiumisation. Prepared Dishes and Cooking Aids registered strong growth through innovation and rural expansion, while the Milk Products and Nutrition business reported broad-based growth across brands and channels. The Pet Food business also delivered strong double-digit growth supported by portfolio expansion and wider distribution.
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Dividend Announcement

The company informed that the Board of Directors had earlier declared a Special Dividend of Rs 2 per equity share (face value Re 1 each). The special dividend will be paid on or after July 30, 2026, along with the final dividend of Rs 5 per equity share for FY26, which was approved by shareholders at the Annual General Meeting held on July 3, 2026.

Key Operational Highlights

Nestle India continued to witness strong growth across e-commerce, organised trade and out-of-home channels. Quick commerce remained a key growth driver, while rural distribution expanded further through technology-led initiatives. During the quarter, the company also strengthened its export footprint by launching new MAGGI variants in Canada, expanding its portfolio across Europe and commencing exports of NESCAFÉ Sunrise to Lebanon after successful launches in the UAE and Saudi Arabia.

About Nestle India

Nestle India Limited is one of India's leading food and beverage companies with a diversified portfolio that includes MAGGI, NESCAFÉ, KITKAT, MILKMAID, EVERYDAY, CERELAC and PURINA. The company manufactures and markets a wide range of nutrition, dairy, beverages, confectionery, prepared dishes and pet food products across domestic and international markets.

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Disclaimer: The article is for informational purposes only and not investment advice.