Nestle India logs strongest volume growth in 5 years, net rises 45%

FMCG major reports 45.1% year-on-year jump in Q3 FY26 net profit, driven by volume-led sales growth, with confectionery and beverages leading performance

Nestle India’s net profit surged 45.1 per cent year-on-year to Rs 998 crore in the third quarter of FY26, as volume-led sales growth hit a five-year peak for the maker of KitKat chocolates and Nescafé coffee.

 

“This performance demonstrates our resilience and adaptability in a competitive market. The growth trajectory is a result of the passion and hard work of our teams, distributors and partners, backed by faster and sharper decision-making, supplemented by the positive momentum from GST rate rationalisation,” Manish Tiwary, chairman and managing director of Nestle India, said in a statement.

 

The company reported an 18.6 per cent growth in consolidated net sales to Rs 5,667 crore from Rs 4,780 crore in the year-ago period, led largely by volume growth — “the strongest in nearly five years”.

 

 

Confectionery was the fastest-growing product group, witnessing “robust double-digit growth fuelled by strong underlying volume increases”, the company said, adding that this was supported by significant advertising spends, expansion of stores, and expanded product offerings.

 

Powdered and liquid beverages saw their 18th consecutive quarter of double-digit growth, while prepared dishes and cooking aids registered strong double-digit value growth on the back of accelerated volume growth.

 

Milk products and nutrition showed improved performance with mid-single-digit growth, while the pet food business saw strong double-digit growth.

 

All channels, including ecommerce, general trade and quick commerce, also witnessed double-digit growth. Meanwhile, the company increased its consumer-focused media and advertising spending by 42 per cent year-on-year in the third quarter.

 

In its commodity outlook, the company said milk prices have not softened and edible oil prices remain elevated and are expected to trade sideways in the first half of 2026. “The upcoming wheat harvest in April 2026 looks promising. Coffee prices have stabilised at lower levels than last year due to favourable crop yields in both Vietnam and India.”

 

“We will continue delivering high-quality products that resonate with our consumers. We will move forward with focus, speed and impact, while driving operational excellence and long-term value with discipline and clarity,” Tiwary said.