Nestle India Q2 PAT drops 24% YoY to Rs 753 cr

Nestle India reported a 23.64% decline in standalone net profit to Rs 753.20 crore despite a 10.57% increase in revenue from operations to Rs 5643.61 crore in Q2 FY26 over Q2 FY25.

Profit before tax (PBT) declined 21.58% to Rs 1,028.52 crore in Q2 FY26 compared with Rs 1311.59 crore in Q2 FY25.

In Q2 FY26, revenue from domestic sales stood at Rs 5,411.02 crore, up 10.6% compared with Rs 4,883.14 crore in Q2 FY25. Revenue from export sales jumped 14.4% YoY to Rs 219.21 crore in Q2 FY26.

The company recorded high double-digit growth in exports, driven by strong demand across product groups. MAGGI Noodles and its variants continued to perform well. The company expanded its portfolio by extending NESCAFbulk into the Middle East. It Introduced NESCAFSunrise in the United Arab Emirates, Saudi Arabia, Singapore, and New Zealand. It also launched the Kitkat range in Singapore and introduced Milkmaid Doypack in Sri Lanka.

On the commodity outlook front, the company expects milk prices to soften after the festive season, coinciding with the onset of the flush season. Coffee prices are expected to stabilize and may decrease as the upcoming crops in Vietnam and India appear to be normal. The global supply and demand for cocoa projected to balance, primarily due to a correction in demand over the past two years. Edible oil prices are expected to remain firm and may rise further due to a tight supply and demand at the global level.

Manish Tiwary, chairman and managing director of NestlIndia stated, I am happy to report that domestic sales grew at a double-digit rate, led by volume growth. Three out of four product groups delivered strong volume led double-digit growth. Our domestic sales reached Rs 5,411 crore, the highest ever recorded in any quarter. I would like to thank our employees for their commitment and resolve.

The confectionery product group grew at a strong double-digit rate, driven by significant underlying volume growth. Kitkat was the largest growth driver and continued to gain market share. India remains the second largest Kitkat market for Nestlworldwide. The numeric distribution expansion of Kitkat, particularly in rural areas, contributed to this growth. Munch and Milkybar also grew at high double-digit rates.

The powdered and liquid beverages product group delivered another quarter of high double-digit growth. NESCAFcontinued to lead the coffee category, gaining market share and increasing household penetration.

The prepared dishes and cooking aids product group registered a strong double-digit value growth on the back of accelerated volume growth. MAGGI Noodles delivered a double-digit volume growth, while Masala-ae-Magic continued its strong run.

Nestlis the world's largest food and beverage company. It manufactures internationally famous brand names such as Nescaf Maggi, Milkybar, Kit Kat, Bar-One, Milkmaid, and Nestea.

The scrip jumped 3.91% to Rs 1,269.30 on the BSE. It also hit a 52-week high at Rs 1,279.50 in intraday today.

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