FMCG major Nestle India on Thursday reported a 36.32 per cent year-on-year rise in consolidated net profit at Rs 1,026.77 crore for the September quarter of FY27, led by double-digit volume growth.
The company had posted a consolidated net profit of Rs 743.17 crore in the corresponding period last fiscal year, Nestle India said in a regulatory filing.
Nestle India’s revenue from sale of products rose 20.45 per cent to Rs 6,782.17 crore in the July-September quarter of FY27. This was Rs 5,630.23 crore in the corresponding period a year ago.
“The quarter saw a continuation of strong and broad-based growth across all product groups, with total sales reaching Rs 6,782.2 crore, with a growth of 20.5 per cent, which was driven by robust, double-digit
volume growth,” said Chairman and Managing Director Manish Tiwary.
The company continued to focus on operational efficiencies while significantly increasing investments behind its brands, with advertising and marketing spend up 46 per cent in the September quarter, he said
“EBITDA margin remained healthy at 23.8 per cent,” Tiwary added.
Nestle India’s total expenses in the quarter under review were 17 per cent higher at Rs 5,405.55 crore.
Its domestic sales climbed 20.4 per cent to Rs 6,514.74 crore in the September quarter of FY27 compared to Rs 5,411.02 crore in the corresponding period of the previous fiscal.
Nestle said confectionery business recorded another quarter of strong double-digit, volume-led growth, driven by market share gains in KitKat and sustained momentum in Munch and Milkybar. Its powdered and liquid beverages business also posted strong growth, supported by wider household reach, affordability and premiumisation in its coffee portfolio, including Nescafe and Nespresso.
The prepared dishes and cooking aids business also delivered strong growth, with Maggi noodles expanding its rural reach and Maggi Masala-ae-Magic focusing on increasing household penetration. Milk products and nutrition also saw broad-based growth, supported by brand-building investments and portfolio optimisation.
The company’s pet food business recorded strong double-digit growth, driven by digital consumer engagement and focused distribution, alongside expansion in the cat food segment through mainstream and premium offering
Nestle India’s revenue from exports climbed 22 per cent to Rs 267.43 crore, driven by portfolio expansion and continued market development.
“During the quarter, MAGGI Masala-e-Magic was launched in Canada, while NESCAFE Sunrise expanded its footprint across five West African markets…The addition of a new instant coffee variant in the Middle East,” it said.
Total income in the second quarter of FY27 stood at Rs 6,808.6 crore, up 20.52 per cent, as against Rs 5,649.150 crore in the year-ago period.
Over the channels, Nestle India reported “strong growth” in E-commerce and Organised Trade, while in the Out-of-Home (OOH) segment, the growth was average. As per its ‘Rurban’ strategy, Nestle India continued expanding rural distribution touchpoints, enhancing its direct reach.
“E-commerce also continued its strong trajectory, driven by sustained shopper engagement, portfolio breadth, and focused channel-specific execution. General Trade delivered robust, double-digit growth across town classes, led by strong momentum in rural markets,” said Tiwary.
However, Tiwary also raised concerns over “Rising inflation, particularly food inflation”, which, according to him, is a “reality”.
“We remain focused on navigating these external challenges through continuous innovation and renovation, sustained investments behind our brands, and an intensified focus on productivity and operational efficiencies to mitigate commodity cost pressures,” he said.
According to Nestle India, coffee and wheat prices are expected to remain range-bound, while sugar and edible oils have stabilised at elevated levels in the third quarter.
“Cocoa remains volatile due to weather-driven crop concerns in key origins. Milk prices have strengthened seasonally but should ease as flush supplies arrive,” the company said in its commodity outlook.
Shares of Nestle India were trading at Rs 1,304.8 in mid-day trade, down 5.73 per cent, on the BSE.
/images/ppid_59c68470-image-179224506050142452.webp)
/images/ppid_59c68470-image-179224502465840401.webp)
