Fast-moving consumer goods (FMCG) major Nestlé India on Thursday said that its board will consider issuing bonus shares at a meeting next week, subject to requisite approvals. Ahead of the announcement, the shares of Nestlé India closed 1.28% lower at ₹2,309.10 on the BSE, with a market capitalisation of ₹2.22 lakh crore.

“This is to inform you that a meeting of the board of directors of the company is scheduled to be held on Thursday, 26th June 2025, to inter alia consider and approve the proposal for issue of bonus shares, subject to requisite approvals,” Nestlé India said in a BSE filing today.

If approved, this would be the first bonus issue by Maggie-maker Nestlé India in nearly three decades. Nestlé India, which made its market debut in 1962, has reportedly issued bonus shares way back in 1996 in a 1:2 ratio. 

In the past 12 months, Nestlé India has declared an equity dividend amounting to ₹25.50 per share. While announcing its March quarter earnings this year, the company declared a final dividend of ₹10 per share for its eligible shareholders, and has fixed July 4 as the record date for determining the eligibility. At the current share price, the stock’s dividend yield stands at 1.10%.

In January this year, Nestlé India announced a stock split in a 1:10 ratio to make the shares more accessible to retail investors.

For Q4FY25, Nestlé India's profit fell by 6.5% to ₹873.4 crore from ₹934.17 crore in the corresponding period a year ago, primarily due to high raw material costs. The FMCG major's Q4 revenue grew 4% to ₹5,503.8 crore YoY on double-digit growth in beverages and confectionery.

Among the various verticals Nestlé India operates, powdered and liquid beverages were the largest growth contributor throughout the year, with high double-digit growth. Its Nescafé brand gained market share and brought more than 5.1 million households into the coffee category. The company's pet care business also reported high double-digit growth.

For FY25, total sales stood at ₹20,077.5 crore, while profit from operations stood at 21.5% of sales at ₹3,314.5 crore. Earnings per share for FY25 were recorded at ₹34.38. The company's board has recommended a final dividend of ₹10 per share of the face value of ₹1 each for FY25, while the earnings per share fell to ₹9.06 in Q4FY25 against ₹9.69 in the year-ago period.

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