Nestlé India Q2 Profit Falls, Revenue Up By 10% Domestic sales reached INR 5,411 crore, the highest ever recorded in any quarter
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Nestle India Ltd reported a 23.6 percent year-on-year decline in standalone net profit to INR 753.2 crore for the July-September quarter of FY26. Revenue from operations rose 10.6 per cent on-year to INR 5,643.6 crore, driven by strong domestic demand and double-digit growth across most product segments.
"Domestic sales grew at a double-digit rate, led by volume growth. Three out of four product groups delivered strong volume led double-digit growth. Our domestic sales reached INR 5,411 crore, the highest ever recorded in any quarter," said Manish Tiwary, chairman and MD, Nestlé India.
The recent amendments in the Goods and Services Tax (GST) rates announced by the government is expected to stimulate consumption, drive affordability and contribute to the overall growth of the FMCG sector and the economy.
"We have been working closely with our partners, distributors, wholesalers, and retailers, to pass on the benefits of the revised GST rates, across our product groups to our consumers," the MD added.
The company has an omni-channel approach, ensuring that the brands are available at locations and channels that are most convenient for consumers. E-commerce continued to maintain its growth momentum, supported by festive unlocks, thematic interventions, and new product launches such as the KITKAT Delights Range and MAGGI Double Masala.
This momentum was further strengthened by a sharpened focus on ensuring availability and strategic partnerships with key platforms specifically in e-commerce.
"Witnessed acceleration in quick commerce, supported by festive integrations, product launches, targeted demand generation, and improved platform availability," the CEO added.
The Confectionery product group grew at a strong double-digit rate, driven by significant underlying volume growth. The Powdered and Liquid Beverages product group delivered another quarter of high double-digit growth. NESCAFÉ continued to lead the coffee category, gaining market share and increasing household penetration.
The Prepared Dishes and Cooking Aids product group registered a strong double-digit value growth on the back of accelerated volume growth. The Milk Products and Nutrition product group had mixed performance, with certain segments showing growth while others exhibited muted performance. The Pet Food business reported high double-digit growth, achieving its highest turnover since its integration into the Nestlé India business. Nestlé Professional, the Out-of-Home (OOH) business, displayed strong double-digit growth.
"We are committed to evolve business portfolio into a comprehensive solution provider for operator needs within the Food & Beverage sector. India is the fastest growing market for the Nestlé OOH business in the Zone and now ranks as the second largest in size in Zone Asia, Oceania and Africa," he said.
Furthermore, the company stated that milk prices are expected to soften after the festive season, coinciding with the onset of the flush season. Coffee prices are anticipated to stabilize and may decrease as the upcoming crops in Vietnam and India appear to be normal. The global supply and demand for cocoa are projected to balance, primarily due to a correction in demand over the past two years. Edible oil prices are expected to remain firm and may rise further due to a tight supply and demand at the global level.
