Nestle India Q2 net profit falls 24% but stock hits record high, here's why
Nestle India Q2 net profit: The fall in profit was led by a rise in input costs, with higher cocoa and milk prices weighing on margins. Operating expenses also climbed amid the ongoing festive season.
- Oct 16, 2025,
- Updated Oct 16, 2025 1:41 PM IST
Nestle India shares rose 5% to a record high on Thursday even as the packaged foods firm said domestic sales grew at a double-digit rate, led by volume growth. Two out of four product groups delivered strong volume, led by double-digit growth in Q2. The firm reported a 23.6% fall in consolidated net profit for the quarter ended September 2025.
The company's standalone net profit fell to Rs 753.2 crore in the last quarter. However, revenue from operations saw a 10.6% increase to Rs 5643.6 crore in Q2.
The fall in profit was led by a rise in input costs, with higher cocoa and milk prices weighing on margins. Operating expenses also climbed amid the ongoing festive season.
The company’s domestic sales climbed 10.8 percent year-on-year to Rs 5,411 crore -- its highest-ever quarterly level -- led by broad-based volume growth. Chairman and Managing Director Manish Tiwary said, “Three out of four product groups delivered strong volume-led double-digit growth.”
The company's share price rose 4.74% to Rs 1279.50 following the announcement of quarterly results. Market cap of the firm fell to Rs 2.24 lakh crore.
CLSA said Q2 was a beat on sales and profitability front. They came above the brokerage's & consensus estimates. Domestic sales were driven by volumes, the brokerage said.
Morgan Stanley said the Q2 results were a good surprise on topline growth.
The global brokerage sees 12-month EPS moving higher in the future after all segments clcok double-digit volume-led growth.
Chairman and Managing Director Manish Tiwary said, “Three out of four product groups delivered strong volume-led double-digit growth.”
"We will invest in growth by accelerating our investments in brands and manufacturing capacity, bringing forth innovations that are bolder, bigger, and better," Tiwary added.
Nestle India shares rose 5% to a record high on Thursday even as the packaged foods firm said domestic sales grew at a double-digit rate, led by volume growth. Two out of four product groups delivered strong volume, led by double-digit growth in Q2. The firm reported a 23.6% fall in consolidated net profit for the quarter ended September 2025.
The company's standalone net profit fell to Rs 753.2 crore in the last quarter. However, revenue from operations saw a 10.6% increase to Rs 5643.6 crore in Q2.
The fall in profit was led by a rise in input costs, with higher cocoa and milk prices weighing on margins. Operating expenses also climbed amid the ongoing festive season.
The company’s domestic sales climbed 10.8 percent year-on-year to Rs 5,411 crore -- its highest-ever quarterly level -- led by broad-based volume growth. Chairman and Managing Director Manish Tiwary said, “Three out of four product groups delivered strong volume-led double-digit growth.”
The company's share price rose 4.74% to Rs 1279.50 following the announcement of quarterly results. Market cap of the firm fell to Rs 2.24 lakh crore.
CLSA said Q2 was a beat on sales and profitability front. They came above the brokerage's & consensus estimates. Domestic sales were driven by volumes, the brokerage said.
Morgan Stanley said the Q2 results were a good surprise on topline growth.
The global brokerage sees 12-month EPS moving higher in the future after all segments clcok double-digit volume-led growth.
Chairman and Managing Director Manish Tiwary said, “Three out of four product groups delivered strong volume-led double-digit growth.”
"We will invest in growth by accelerating our investments in brands and manufacturing capacity, bringing forth innovations that are bolder, bigger, and better," Tiwary added.