Food major Nestle India‘s March quarter profit, revenue and operating margins beat street estimates, as demand for packaged food & beverages, including Munch chocolates, Maggi noodles and Nescafe remained robust. The company posted a 26% year-on-year increase in standalone net profit for Q4FY26 at Rs 1,114 crore, ahead of Bloomberg consensus estimates of Rs 926 crore for the period.
Standalone revenue from operations grew 22.6% year-on-year to Rs 6,748 crore in Q4, ahead of the Rs 6,186 crore forecast by analysts for the period. The standalone financial performance was powered by double-digit volume growth and driven by an over 50% increase in advertising spends during the quarter.
The company also delivered its highest-ever domestic sales in a decade, at Rs 6,445 crore, for the quarter. Shares of Nestle India advanced over 7% on the BSE on Tuesday, following announcement of its results in the afternoon session, closing trade at Rs 1,378.70 apiece.
EBITDA grows 27.6% Y-o-Y
Earnings before interest tax depreciation and amortisation (Ebitda) grew 27.6% year-on-year to Rs 1,772 crore versus a consensus estimate of Rs 1,498 crore for the period. Ebitda margins stood at 26.3% for the period, ahead of the 25.2% number reported last year.
“Total sales and domestic sales for the quarter increased by 23.4% and 23.1%, respectively. Encouragingly, all product groups contributed to this performance,” Manish Tiwary, chairman & MD, Nestle India, said.
“Penetration and premiumisation, combined with disciplined resource allocation and strong execution, have been key in driving growth,” he said. The company will focus on four key priorities including consumer centricity, penetration-led volume growth, reinvestment behind brands and capacity, and accelerating tech-led sales and operations, he added.
The company declared a final dividend of Rs 5 per share with a face value of Re 1 each.
On a consolidated basis, revenue rose to Rs 6,766.24 crore from Rs 5,679.87 crore in the same quarter last year. Consolidated profit rose 11.3% to Rs 1,110.90 crore, the company said.
The maker of Kitkat said that its confectionery product group grew at a high double-digit pace in both value and volume underpinned by strong underlying transaction growth across its powerhouse brands.
Prepared dishes and cooking aids, which includes Maggi, posted strong volume-driven growth in Q4, fuelled by engaging urban consumers and expanding rural reach, leading to gains in both market share and penetration.
It also noted high double-digit growth in its powdered and liquid beverages, which includes Nescafe, driven by increased coffee penetration, accelerated premiumisation, and deeper category relevance across consumer segments, supported by strong brand equity and an expanded footprint.
Milk products and nutrition, the company said, showed resilience, delivering steady growth. Portfolio accessibility in milk products and nutrition was increased by introducing new and larger pack sizes, it said.
“We continued to execute an omni-channel strategy aligned to the evolving retail ecosystem, scaling e-commerce and quick commerce, strengthening modern trade and chain pharmacy. We sustained growth through general trade across semi-urban and rural markets,” Tiwary said.
Commenting on the coffee prices, the company said it expects prices to continue to trend lower, supported by a favourable crop in Vietnam and the forthcoming crop in Brazil.
However, it pointed to higher edible oil prices, in tandem with global crude oil prices, supported by increased diversion to biodiesel. Meanwhile, unseasonal rains have impacted wheat production, resulting in a delayed harvest and lower quantity and quality, the company said.