Nestlé India Reports Strong Q4 Sales Growth Driven by Volume Increase and 26% Profit Surge

Nestlé India Records Strongest Quarterly Sales Growth in Almost a Decade

Nestlé India has announced its strongest quarterly sales growth in almost a decade, driven by double-digit volume gains and broad-based demand across categories. The company's shares surged in response, with a 26% rise in standalone net profit to ₹1,114 crore in the March quarter from a year earlier.

According to a stock exchange filing on Tuesday, revenue from operations climbed 22.6% to ₹6,747.7 crore. Earnings before interest, taxes, depreciation, and amortization (Ebitda) rose 27.6% to ₹1,771.6 crore, with the Ebitda margin at 26.3%. Domestic sales increased 23.1% as advertising spending jumped 50% from a year earlier.

Nestlé's integrated approach delivered a strong scale-up in total reach across geographies, with the company expanding its presence to about 216,000 villages, the highest reach increase among its peers. The company attributed this growth to its rural markets, which contributed significantly to its overall sales.

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All product groups contributed to growth, with confectionery and beverages delivering high double-digit momentum, while Maggi-led prepared dishes saw strong volume expansion and milk and nutrition posted steady growth.

Despite the company's strong performance, analysts at Sunrise Gilts & Securities Pvt. Ltd. have cautioned that El Niño-related weather volatility could create mixed demand conditions, with rural consumption and out-of-home categories such as confectionery and beverages vulnerable to irregular rainfall patterns.

Nestlé India shares gained 7.27% to ₹1,379.90 at the close on the National Stock Exchange, off a 52-week high of ₹1,396 on Tuesday. The company recommended a final dividend of ₹5 per share for FY26.

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The company attributed the reduction in prices of its key raw materials, such as coffee and cocoa, to the current market trends. However, Nestlé noted that wheat prices have been affected by unseasonal rains in April, resulting in a delayed harvest and lower quantity and quality. Milk prices have firmed and are expected to remain elevated through the summer lean season.

Nestlé's milk products and nutrition product group showed resilience, delivering steady growth in the fourth quarter, while the prepared dishes and cooking products group, including products like Maggi, reported a volume-driven growth, fueled by engaging urban consumers and expanding rural reach. Powdered and liquid beverages reported high double-digit growth, driven by increased coffee penetration and accelerated premiumization. Confectionery products, including KitKat and Munch, grew at a high double-digit pace in both value and volume. The pet food business, with brands Purina and Friskies, reported high double-digit growth, driven by a strong innovation pipeline to expand penetration and trials and wider distribution.