Nestle India Q2 net profit falls 24% but stock hits record high, here's why 

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.