Nestle India Q2 Net Profit Down 24% To Rs 753 Crore YoY, Domestic Sales Hit Record High

Nestle India Ltd Q2 standalone net profit fell 23.6 per cent year-on-year to Rs 753.2 crore, beating Street expectations. The FMCG major’s July-September revenue rose 10.6 per cent to Rs 5,643.6 crore.

Nestle India shares jumped over 3.3% after the company reported its September quarter results, trading at Rs 1,262 on the NSE in early afternoon trade.

Record Domestic Growth

The company’s domestic sales rose 10.8% year-on-year to ₹5,411 crore, marking its highest-ever quarterly performance, driven by broad-based volume growth. Chairman and Managing Director Manish Tiwary said that three out of four product groups delivered strong, volume-led double-digit growth, adding that recent GST rate revisions are expected to further boost consumption and affordability across product categories.

Segment Performance: Broad-Based Strength

Nestle’s confectionery segment maintained robust momentum, with KitKat remaining the largest growth driver and gaining additional market share. India continues to be the second-largest market for KitKat globally, supported by deeper rural penetration. Munch and Milkybar also recorded high double-digit growth. The powdered and liquid beverages division posted strong double-digit gains, with Nescafé continuing to lead the coffee segment and expanding household reach. The prepared dishes and cooking aids category also saw double-digit growth on the back of higher volumes, while the milk products and nutrition segment showed mixed trends.

Profitability and Financials

Nestle India’s EBITDA stood at 22% of sales during the fiscal second quarter. Earnings per share were Rs 3.90, compared to Rs 3.88 in the year-ago period, after excluding a one-time divestiture income of Rs 290.8 crore booked last year. The net profit of Rs 753 crore, lower than last year’s figure, reflected the absence of those exceptional gains.

Commodity Outlook

Looking ahead, the company expects milk prices to soften after the festive season as the flush season begins. Coffee prices are anticipated to stabilise or decline, supported by normal crop prospects in Vietnam and India. Meanwhile, the cocoa market is expected to move toward balance after recent demand corrections, while edible oil prices may stay firm due to tight global supplies.

Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.