Nestle India Q1 Results: Stock soars after 40% operating profit growth, margin expansion

Nestle India Ltd. announced its results for Q1 FY27 on Wednesday, July 22. The company's shares rose by a major 3% after the company outperformed estimates.

Nestle Beats Estimates Again

The FMCG giant saw a rise in its topline numbers, as the company reported revenue of ₹6,378 crore, a growth of 25.2% from the year-ago period, and was higher than the CNBC-TV18 poll figure of ₹6,065 crore.

When we look at the operational profitability, the Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter grew by 40% year-on-year to ₹1,538 crore, also higher than the CNBC-TV18 poll figure of ₹1,375 crore.

The net profit for the quarter rose by 45%, jumping to ₹975.1 crore, compared to ₹659.2 crore in the previous cycle. The poll suggested a figure of

Nestle India's margins expanded by over 300 basis points to 24.1% from 21.6%. A CNBC-TV18 poll had put the margin at 22.70%.

 

A Look Back At Nestle's Q4

This comes after the company outperformed estimates in theprevious quarter (Q4FY26

). In Q1, the company reported revenue of ₹6,748 crore. Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) stood at ₹1,773 crore. In addition, the Gurugram-based company's margins had expanded to 26.3%.

In the previous quarter, the company had also set out its commodity outlook, in which the company had underscored dipping prices of Coffee and Cocoa. Meanwhile, the company also spoke about high prices of edible oil and wheat has been affected by unseasonal rains in April. Furthermore, the company had also announced a dividend of ₹5 per share as well.

Commenting on the results, Manish Tiwary, Chairman and Managing Director, Nestlé India, said: “We delivered a strong quarter with sales growth of 25.4% led by volume growth. Sales stood at ₹6,363.3 crore, powered by continued consumer trust in our brands and a strong focus on execution. Exports delivered 35.6% growth, despite ongoing geopolitical headwinds.

Talking about the company shares today, the stock started the day on a positive note ahead of the result announcement. The stock has hit the 52-week high mark of ₹1,510.00 per share after rising over 3% from yesterday's close. The stock has seen a rise of over 14% in the past 6 months of trade. The stock price is now at ₹1,496.80 per piece.

 

Read Also: Nestlé India's returns to shareholders hit a six-year low. Here's why