Nestlé India clocks ₹975 crore Q1 profit as 25.4% sales growth rides on quick commerce, premiumisation

Nestlé India kicked off FY27 with its fastest quarterly growth in recent years, reporting a 25.4% rise in sales and a 47.9% jump in profit after tax, as broad-based volume growth, rising premiumisation and rapid expansion across quick commerce and rural markets helped the FMCG major outperform despite an uncertain global backdrop. 

The maker of Maggi noodles, Nescafé and KitKat reported total sales of ₹6,363.3 crore for the quarter ended June 30, 2026, while profit after tax rose to ₹975.1 crore from ₹659.2 crore in the year-ago period. EBITDA margin stood at 24.2%, even as the company stepped up investments in its brands, with advertising expenditure increasing by more than 40% during the quarter. Earnings per share came in at ₹5.06. 

Revenue from operations rose to ₹6,378.2 crore from ₹5,096.2 crore a year ago, while domestic sales increased 25% and exports climbed 35.6%. The company said lower raw material costs as a percentage of sales also supported profitability during the quarter. 

"We delivered a strong quarter with sales growth of 25.4% led by volume growth. Sales stood at INR 6,363.3 crore, powered by continued consumer trust in our brands and a strong focus on execution. Exports delivered 35.6% growth, despite ongoing geopolitical headwinds," said Manish Tiwary, chairman and managing director, Nestlé India. 

He added that the company accelerated operational cost savings while continuing to invest behind its brands. "Advertising spends increased by over 40%, with a healthy EBITDA margin of 24.2%. Profit After Tax for the quarter stood at Rs. 975.1 crore, up 47.9% over the corresponding quarter." 

Quick commerce, coffee and rural markets drive growth

Nestlé said all four of its product groups posted strong double digit growth during the quarter, supported by high double digit expansion across sales channels. Confectionery continued its momentum, aided by premiumisation and e-commerce, with KitKat gaining market share. The powdered and liquid beverages business registered its 20th consecutive quarter of double digit growth, driven by rising coffee consumption, premium products and wider distribution. 

The company also continued to expand its premium coffee business. Over the past year, Nespresso widened its presence across Delhi NCR, Mumbai and Bengaluru through boutiques, pavilions and pop up formats, while opening a new Nespresso Pavilion in Bengaluru during the quarter. 

Prepared Dishes and Cooking Aids, led by Maggi, recorded strong growth through urban engagement, rural expansion and product innovation, while the Milk Products and Nutrition business delivered broad-based volume growth across brands and channels. Nestlé also reported strong double digit growth in its pet food business, supported by wider distribution and the launch of Felix Gravy Lover and Pro Plan Cat products. 

Digital channels remained a major growth engine. The company said e-commerce maintained strong momentum, with quick commerce emerging as a key driver through improved product availability, platform-specific packs and targeted marketing investments. Organised retail and the out-of-home business also delivered double digit growth, while exports expanded into newer international markets, including Lebanon, and helped Nestlé India secure 4-Star Export House status. 

General trade continued to deliver strong double digit growth across town classes, with rural markets leading the momentum. Nestlé said it expanded rural distribution touchpoints during the quarter and strengthened retailer engagement through technology-led initiatives at the sub-distributor level. 

Alongside its financial performance, the company highlighted investments in building a more resilient dairy value chain through climate resilient farming practices and technology adoption among milk suppliers, particularly around its Moga factory in Punjab. 

Looking ahead, Nestlé expects commodity trends to remain mixed. Coffee supply is likely to improve, supported by higher production in Brazil and Vietnam, although weather-related disruptions could create short-term volatility. Cocoa and sugar continue to face supply pressures, edible oil prices remain elevated, while dairy-based proteins continue to see inflationary pressure as demand outpaces supply. Wheat and milk prices, however, are expected to remain largely range-bound.