Shares of Nestlé India surged 7.3% to hit a 52-week high of ₹1,380.7 apiece on the NSE on Tuesday after the FMCG major reported a strong March-quarter performance, driven by volume-led growth and margin expansion.

The rally came as investors reacted positively to the company’s broad-based growth across categories, strong domestic demand and improved profitability.

Nestlé India reported a consolidated net profit of ₹1,111 crore, up 27.19% from ₹873.4 crore in the year-ago quarter.

Revenue from operations rose 22.6% to ₹6,748 crore, compared to ₹5,504 crore a year earlier, reflecting robust demand across product segments.

Operationally, the company delivered a strong performance with EBITDA at ₹1,771.5 crore, up 27.6% YoY and EBITDA margin at 26.25%, compared to 25.22% last year.

The margin expansion indicates improved operating leverage, supported by higher scale and cost efficiencies.

Management flags strongest growth in years

Chairman and managing director Manish Tiwary has called the quarter one of the best in recent years.

“I am pleased to share that this quarter, Nestlé India delivered high double-digit growth and recorded its highest-ever domestic sales, at INR 6,445 crore. This performance was powered by double-digit volume growth, driven by over 50% increase in advertising spends, whilst delivering a healthy EBITDA margin of 26.3%.”

He added that growth was broad-based across the portfolio.

“Total sales and domestic sales for the quarter increased by 23.4% and 23.1%, respectively. Encouragingly, all product groups contributed to this performance.”

The company said it continued to focus on fundamentals during the year, with a clear emphasis on volume growth and market share expansion.

“During the financial year ended 31st March 2026, we remained focused on the fundamentals and executed with resilience, delivering double-digit, volume-led growth alongside strong market share gains.”

Management also pointed to structural initiatives supporting long-term growth.

“We progressed on our structural cost-efficiency agenda and delivered our highest-ever operational cost savings, which enabled higher reinvestments behind brands.”

Growth across categories and channels

Nestlé India said growth was broad-based across categories and channels, with all business segments contributing.

The company highlighted strong momentum in confectionery and beverages, steady growth in milk products and nutrition, and continued expansion in newer segments such as pet food and premium coffee.

It also noted strong traction across channels including e-commerce, quick commerce, modern trade and rural markets, with expansion in distribution reach.

Commodity outlook mixed

On the input cost front, the company flagged a mixed outlook.

“Coffee prices continue to trend lower… Cocoa prices remain subdued… Sugar prices remain stable… Edible oil prices are firm… Milk prices have firmed and are expected to remain elevated through the summer lean season.”

Dividend announcement

The board has recommended a final dividend of ₹5 per equity share for FY26. The company has fixed July 10, 2026 as the record date, and the dividend, if approved by shareholders at the upcoming AGM, will be paid on and from July 30, 2026. Including the interim payout, total dividend for the year stands at ₹12 per share.

Nestlé India shares have surged nearly 14% over the past year, outperforming the benchmark Nifty 50 index, which has delivered returns of about 2% during the same period.