Nestle India Shares Edge Up 1.87% Ahead of Quarterly Results

Nestle India Shares Gain Ahead of Q4 FY26 Earnings Announcement

Shares of Nestle India, the domestic subsidiary of Nestle S.A., were trading higher on Tuesday, ahead of the company's Q4 FY26 earnings announcement later in the day. The latest NSE data showed the FMCG major's stock was up 1.87% at Rs 1,310.80 in morning trade.

Nestle India is scheduled to announce its March quarter results on April 21, with the company expected to post steady growth, supported by healthy volume expansion. According to the CNBC-TV18 poll, revenue is projected to rise 13.5% year-on-year to Rs 6,250 crore from Rs 5,503.9 crore. Profit after tax is estimated to increase 12.7% to Rs 998 crore from Rs 885.4 crore.

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EBITDA is expected to grow 10% to Rs 1,530 crore from Rs 1,388.9 crore. EBITDA margin, however, may moderate to 24.5% compared with 25.2% in the year-ago period. Growth is likely to be driven by domestic volume expansion of 9%-11%, while pricing and product mix are expected to contribute another 4%-5%. Export revenue is also seen rising 12%-14% year-on-year.

The March quarter may also benefit from normalisation in trade channels after GST-related disruptions. Gross margins, however, could remain under pressure, with analysts expecting a contraction of 50-60 basis points due to higher raw material costs. While cocoa prices have eased, inflation in milk and coffee continues to be a key concern.

Management commentary will be monitored for updates on the impact of unseasonal rains on out-of-home consumption, as well as any supply chain issues or higher logistics costs arising from tensions in the Middle East. Nestle India continues to target margins in the 22%-24% range, while rural demand is expected to grow at least 1.5 times overall business growth. Emerging businesses such as Nespresso, pet care, and B2B operations are expected to expand at 2-3 times the pace of the core portfolio.

The company has also indicated that its next Rs 20,000 crore revenue milestone is expected to be achieved faster than the previous one.

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