Nestle India Q2 Results: Muted volume growth seen, margin impact in focus

Maggi instant noodles maker Nestle India Ltd. will announce its earnings for the second quarter of FY26 (Q2FY26) on Thursday, October 16.

According to a CNBC-TV18 poll, the company is expected to report a revenue growth of 3.5% at ₹5,285 crore, compared to ₹5,104 crore in the same quarter last year.

EBITDA is likely to remain largely flat, up 0.2% at ₹1,170 crore versus ₹1,167.7 crore a year ago. Margins are expected at 22.1% against 22.9% in the year-ago period.

The company's profit after tax (PAT) is seen declining 28% to ₹710 crore from ₹986.3 crore in Q2FY25.

Here's what to watch

- Impact of GST-led trade transition estimated between 350-400 basis points

- 3-4% growth expected in domestic business; 7-10% growth seen in exports

- Domestic volume growth likely between 1-2%

- Price growth expected at 2-3%, led by inflation in key inputs

- 80-100 bps impact anticipated on gross and EBITDA margins

Management commentary on demand trends post-GST transition, raw material inflation, and growth in the pet-care segment will be key to track.

Strategy and direction under the company's new leadership will also be important to watch.

The Nestle India stock is down 10% from its 52-week high and is trading at 62 times its estimated FY27 earnings.

Shares of Nestle India Ltd. settled about 4% higher on Wednesday at ₹1,222.30, a day ahead of its earnings announcement.