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Nestle India (Nestle)’s total revenues grew by 25% YoY

ICICIdirect Research 23 Jul 2026 DISCLAIMER

News: Nestle India (Nestle)’s total revenues grew by 25% YoY to Rs6,378.2cr, ahead of our expectation of Rs6,055.5cr. Q1 was 4th consecutive quarter of sequential improvement in the revenue growth. Domestic business grew by 25% (largely volume led growth) while exports grew by 35% during the quarter. Confectionary, Power and liquid beverages and Prepared dishes categories maintained volume led double digit revenue growth. Gross margins improved by 209bps YoY to 57.2% with some of the key inputs including coffee corrected from its high. This along with cost saving initiatives aided the EBIDTA margins to improve by 253bps YoY to 24.1% (ahead of our expectation of 22.6%). EBIDTA grew by 40% YoY to Rs1,538.1cr. Adjusted PAT grew by 49.0% YoY to Rs963.4cr (ahead of our expectation of Rs821cr) in Q1FY27.

View: Nestle delivered a strong all-round performance in Q1FY27 continuing its momentum witnessed in last two quarters. We believe domestic volume growth will be in high teens driven by improved demand, distribution expansion (especially in rural market) and capacity expansion in key product categories. We expect the momentum to sustain in quarters ahead, while revenue growth might taper down a bit on a normalise base. Raw material prices remained mix and any inflationary pressure in key input prices might act as a risk to margins. With a large preference to food companies in the FMCG space, we continue to like Nestle amongst the large companies under our coverage. Stock has already reacted positively to the strong performance.

Impact: Positive

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