Nestle India Posts FY26 Sales Revenue of ₹23,071 Crore, Pays ₹1,024.5 Crore in Royalties to Parent Entity

Nestle India Sees Significant Increase in Licence Fees Paid to Parent Firm

Nestle India, a leading FMCG major, has reported a substantial increase in licence fees paid to its Switzerland-based parent entity, Société des Produits Nestlé S.A. According to the company's latest annual report, the general licence fees paid to Société des Produits Nestlé S.A. rose by 13.91% to ₹1,024.5 crore in financial year 2026.

In addition to the licence fees, Nestle India also paid a withholding tax on general licence fees of ₹102.47 crore for the financial year ended March 2026. In comparison, the company paid ₹899.41 crore as general licence fee and ₹89.71 crore as withholding tax on general licence fees in the preceding year of FY25.

As a part of its General Licence Agreements, Nestle India obtains access to the Nestlé Group's technology and intellectual property for manufacturing and marketing its products. The company benefits from technological advancements and innovations across its product categories. Nestle India pays a royalty of 4.5% of net sales to its parent firm.

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The promoter entities, Nestlé S.A. and Maggi Enterprises Ltd, together hold a 62.76% stake in Nestle India as of March 31, 2026. The company's financials also show that Nestle India's revenue from sales increased by 14.2% to ₹23,071.46 crore in FY26.

Nestle India's employee base saw a marginal decline to 8,382 in FY26, although the company is investing in capex and setting up its tenth factory in India. The median remuneration of employees increased by 7.3% in FY26, higher than the 4.9% increase in the preceding fiscal. The remuneration ratio of the company's Chairman and Managing Director, Manish Tiwary, and its employees stands at 134:1.

Tiwary was appointed as Chairman and Managing Director on August 1, 2025. Interestingly, last year, shareholders of Nestle India rejected a proposal to increase the royalty payment to its parent firm by 0.15% per year for the next five years, raising it to 5.25% of net sales. The company had proposed implementing the increase from July 1, 2024.

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