Nestle India reported a 13.4% year-on-year (YoY) drop in its consolidated net profit for the first quarter of the financial year 2025–26 (Q1 FY26), with earnings slipping to ₹646.5 crore compared to ₹746.6 crore in the corresponding quarter of FY25, according to the company’s latest stock exchange filing on Thursday.
Though it reported a decline in profit, the consumer goods giant witnessed a 6% YoY revenue growth from operations at ₹5,096 crore for April–June 2025 compared with ₹4,814 crore in the corresponding quarter last year.
The revenue growth was largely driven by a 5.5% increase in local sales, which rose to ₹4,860 crore, as against ₹4,608 crore in Q1 FY25. Export sales too performed well, growing 16% to ₹214 crore from ₹184.5 crore in the same period last year.
Nestle India's revenue from operations for the quarter was ₹5,100 crore, 5% higher than ₹4,853 crore in the same quarter last year. Product sales increased to ₹5,074 crore, up from ₹4,793 crore, while other operating income inched higher to ₹22 crore from ₹21 crore in the earlier-year quarter.
Analyzing the financial performance, Suresh Narayanan, Nestle India's Chairman and Managing Director, attributed the decline in profit to higher commodity prices and increased operating costs due to recent manufacturing expansion activities.
He further noted that short-term bank borrowings to service operations added to higher finance expenses.
But Narayanan mentioned some relief in input cost pressures. "Edible oil and cocoa prices have begun to stabilise, coffee prices are declining, and milk prices are increasing moderately," he said.
He also pointed out the beverages segment's contribution to overall growth. "The Powdered and Liquid Beverages category was among the strong growth drivers for the company, with strong double-digit growth," he said.
Nescafe maintained market leadership with more market share gained. The brand concentrated on both low-cost coffee packs and upper-grade offerings such as Nescafe Gold and Nescafe Roastery," Narayanan further said.
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