FMCG major, Nestle India reported a 13.4 per cent fall in consolidated net profit for the June 2025 quarter at Rs 646.59 crore compared to Rs 746.6 crore in the same period last year. The drop was mainly due to higher commodity prices and increased operating costs, the company said in its regulatory filing.
Here are 5 key highlights from Nestle’s Q1FY26
1. Revenue grows despite margin pressure
Despite the profit dip, Nestle India’s revenue from product sales rose 5.86 per cent to Rs 5,073.96 crore, up from Rs 4,792.97 crore in the corresponding quarter last year. Domestic sales climbed 5.45 per cent to Rs 4,860.01 crore, while exports saw a 16 per cent surge to Rs 213.95 crore.
“The quarter was impacted by elevated consumption prices across the commodity portfolio. In addition, we witnessed higher operations costs as a result of significant expansion in manufacturing in the last seven to eight months,” said Suresh Narayanan, Chairman and Managing Director of Nestle India.
2. Cost inflation dents margins
Nestle is facing inflationary pressures in key ingredients like cocoa, milk, and coffee—staples for its popular products such as KitKat and Nescafe. The company increased select product prices to absorb these costs, but this move affected demand in its milk products and nutrition segment, which includes brands like Cerelac and Milkmaid. The company did not specify which products underperformed.
Nestle India said milk prices are likely to ease, while coffee prices are expected to remain steady and low.
However, the company said prices of edible oil and cocoa are stabilising, coffee prices are showing a declining trend, and milk prices may ease with a favourable monsoon and the onset of the flush season.
3. Domestic sales up 5.45% to Rs 4,860 crore
The company’s total expenses rose 9.25 per cent to Rs 4,199.73 crore during the quarter. It also incurred higher finance costs due to short-term borrowings taken to support operational cash flow. Domestic sales climbed 5.45 per cent to Rs 4,860.01 crore, up from Rs 4,608.50 crore in the corresponding period of the previous fiscal. Exports surged 16 per cent to Rs 213.95 crore.
“Export registered high double-digit growth, driven by foods, coffee, Instant Tea, and breakfast cereals, despite commodity headwin,” the Company noted.
4. Suresh Narayanan set to retire; Manish Tiwary to take over
In its regulatory filing announcing the quarterly results, the company also announced the retirement of its current Chairman and MD & CEO, Suresh Narayanan. He will retire on July 31 and will be succeeded by Manish Tiwary.
5. Urban demand drives Nestlé India’s revenue growth
Nestle India’s revenue from operations, meanwhile, rose 6% to Rs 5096.1 crore, led by growth in urban markets. Nestle India said it has committed Rs 6,500 crore towards capacity expansion between 2020 and 2025 to meet rising demand, particularly from urban markets.
The company also said that dividend of Rs 10 per equity share (face value of Rs 1 each) for the financial year 2024-25 will be paid on or after 24th July 2025.