Nestle India shares climb 4% to hit record high after Q1 results

Shares of Nestle India Ltd surged in Wednesday's late morning trade after the FMCG major reported a decent set of earnings for the June quarter (Q1 FY27). The stock climbed 3.91 per cent to hit a record high of Rs 1,509.75 shortly after the company announced its quarterly results.

Nestle India reported a consolidated net profit of Rs 958.68 crore for the April-June quarter, up 48.27 per cent year-on-year (YoY) from Rs 646.59 crore in the corresponding period last year.

Revenue from operations increased 25.16 per cent YoY to Rs 6,378.18 crore in Q1 FY27 from Rs 5,096.16 crore in the year-ago quarter.

Commenting on the performance, Manish Tiwary, Chairman and Managing Director, Nestlé India, said, "We delivered a strong quarter with sales growth of 25.4 per cent led by volume growth. Sales stood at Rs 6,363.3 crore, powered by continued consumer trust in our brands and a strong focus on execution. Exports delivered 35.6 per cent growth, despite ongoing geopolitical headwinds."

He added that the company continued to improve operational efficiencies while increasing investments in its brands.

"We further accelerated operational cost savings, and continued to step up investments behind our brands with advertising spends increasing by over 40 per cent, with a healthy EBIDTA margin of 24.2 per cent," Tiwary said.

According to the company, all four product groups -- Prepared Dishes and Cooking Aids, Milk Products and Nutrition, Confectionery, and Powdered and Liquid Beverages -- posted strong double-digit growth during the quarter, supported by high double-digit growth across channels.

Tiwary said, "The Confectionery product group recorded another strong quarter of volume-led double-digit growth that was bolstered by premiumisation and e-commerce, with strong underlying transaction across powerhouse brands. KITKAT continued to gain market share."

He also said, "The Powdered and Liquid Beverages product group recorded another quarter of strong and consistent performance, marking the 20th consecutive quarter of double-digit growth. This performance was powered by increased coffee penetration, accelerated premiumisation, and deeper category relevance across consumer segments, supported by sustained brand-building that continues to strengthen our equity and by an expanding footprint."