Nestlé India Q4: Volume boost drives best sales growth in a decade; profit jumps 26%

Nestlé India said it recorded its strongest quarterly sales growth in almost a decade, helped by double-digit volume gains and broad-based demand across categories. The company’s shares started to rise.

The maker of Maggi noodles and KitKat chocolates reported a 26% increase in net profit alone. ₹1,114 crore in the March quarter compared to the previous year, while revenue from operations increased by 22.6%. ₹6,747.7 crore, the company said in a statement to the stock exchange on Tuesday.

“We continued to focus on fundamentals and executed with flexibility, delivering strong market share gains as well as double-digit, volume-led growth,” Manish Tiwary, chairman and managing director of Nestlé India, said in the filing. Tiwary added that the company will focus on consumer centricity, penetration-driven volume growth, reinvesting in brand and capacity, and accelerating technology-driven sales and operations.

Also Read | Nestle India’s premium growth reflects in premium valuation

Earnings before interest, taxes, depreciation and amortization increased by 27.6% ₹1,771.6 crore, with EBITDA margin at 26.3%. Domestic sales increased by 23.1%, as advertising expenditures increased by 50% compared to the previous year.

The company said its integrated approach has enabled strong scale-up in overall reach across geographies. Nestlé said it had the highest reach growth among its peers, driven primarily by rural markets, and expanded its presence to around 216,000 villages.

“All product groups contributed to growth, with confectionery and beverages providing high double-digit momentum, while volume of ready meals, led by Maggi, recorded strong growth, while dairy and nutrition recorded steady growth,” said Meet Mewada and Somil Popat, analysts at Sunrise Gilts & Securities Pvt. Ltd. “Looking ahead, El Niño-related weather variability could create mixed demand conditions, with rural consumption and out-of-home categories such as confectionery and beverages vulnerable to erratic rainfall patterns.”

Nestlé India shares gained 7.27% ₹At the close of the National Stock Exchange, it was at 1,379.90, a 52-week high. ₹1,396 on Tuesday. Company recommends final dividend ₹5 per share for FY26.

Also Read | First-class personal care move begins to bear fruit for FMCG companies

Cocoa, coffee prices

Nestle said prices of basic raw materials such as coffee and cocoa prices have fallen. It was stated that coffee prices continued to fall and cocoa prices remained low.

“Wheat was affected by unseasonal rainfall in April, resulting in a delayed harvest and reduced quantity and quality. Milk prices have strengthened and are expected to remain high throughout the summer lean season,” the company said.

Nestlé said its dairy and nutrition products group “demonstrated resilience and delivered steady growth” in the fourth quarter. The company introduced larger pack sizes to increase portfolio accessibility and value.

Tiwary said the ready meals and cooking products group, which includes products such as Maggi, reported “volume-led growth driven by participation of urban consumers and expansion of rural reach”.

Also Read | Nestle flirts with luxury through its First Nespresso boutique in India; more to follow

High double-digit growth was recorded in powdered and liquid beverages. The company attributes this to increased coffee penetration and accelerated premiumisation. The company said its confectionery products, including KitKat and Munch, were growing “at a high double-digit pace in both value and volume.”

The pet food business, which owns the Purina and Friskies brands, reported high double-digit growth, driven by a strong innovation pipeline to expand penetration, trials and broader distribution.