Nestle India Q1FY26 profit drops 13.4% YoY to Rs 647 crore; revenue up 6%, Manish Tiwary named CMD
Mumbai: Nestle India, which makes products like Maggie and EveryDay dairy whitener among other popular packaged food items, on Thursday posted a 13.4% year-on-year decline in its consolidated net profit for the first quarter of FY26, with profit after tax falling to Rs 647 crore from Rs 747 crore in the corresponding period last year.
According to Economic Times, revenue from operations rose 6% YoY to Rs 5,096 crore, compared to Rs 4,814 crore in Q1FY25, aided by stronger domestic and export sales.
Domestic sales increased 5.5% to Rs 4,860 crore from Rs 4,608 crore, while export revenue grew 16% year-on-year to Rs 214 crore, up from Rs 184 crore in the same quarter of the previous year.
The company reported a 5% YoY rise in total income to Rs 5,100 crore for the quarter ended June 30, 2025, compared to Rs 4,853 crore a year earlier.
Product sales rose to Rs 5,074 crore from Rs 4,793 crore, while other operating revenue showed a marginal uptick to Rs 22 crore from Rs 21 crore in the year-ago period.
However, other income declined sharply to Rs 4 crore from Rs 39 crore.
The quarterly results, released during market hours, triggered a 4.5% fall in Nestle India shares, which traded at Rs 2,341.55 on the BSE.
Alongside its earnings, the company also announced the appointment of Manish Tiwary as Chairman and Managing Director, effective August 1.
He will succeed Suresh Narayanan, who will retire on July 31.
The company attributed the decline in profitability to elevated input prices across its commodity portfolio and higher operational costs arising from manufacturing expansion over the past seven to eight months.
Additional pressure came from increased finance costs due to short-term borrowings from commercial banks to support operational cash flows.
Nestle India, however, pointed to stabilisation in the prices of edible oil and cocoa, a softening in coffee prices, and a modest rise in milk prices, indicating some relief on the cost front.
Segment-wise, the powdered and liquid beverages category remained a key growth driver, delivering another quarter of strong double-digit growth.
The prepared dishes and cooking aids category, which includes MAGGI noodles, returned to volume-led growth, also recording double-digit expansion.
The confectionery business showed high double-digit growth, underpinned by strong volume performance.
Milk products and nutrition delivered a mixed performance, with some segments showing momentum while others remained subdued.
Nestlé’s breakfast cereals business saw high double-digit growth, and the pet food category performed well, led primarily by its cat food portfolio.
The company’s e-commerce business continued its strong showing, contributing 12.5% to domestic sales, bolstered by the quick commerce segment and new product launches.
Its out-of-home segment also maintained robust double-digit growth, emerging as the fastest-growing contributor across the beverages and foods portfolio.
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