Nestle India Q1 profit down 13% to Rs 647 cr, Manish Tiwary named CMD

Nestle India's Q1 profit declined for a second quarter amid high costs; volume growth in key categories and strong e-commerce helped offset margin pressures

Fast-moving consumer goods (FMCG) major Nestle India on Thursday reported a 13.3 per cent decline in net profit to ₹647 crore in the first quarter of 2025-2026 (Q1FY26) amid higher operational costs due to expansion. This is the second straight quarter of the company reporting a decline in net profit. The company had reported a net profit of ₹746.6 crore in Q1FY25.

 

The maker of Maggi noodles and Nescafe coffee, however, flagged year-on-year (Y-o-Y) volume growth in Q1FY26 while reporting a 5.8 per cent increase in net sales to ₹5,096 crore from ₹4,814 crore in the year-ago period.

 

The company reported volume growth in three prominent categories — prepared dishes and cooking aids, powdered and liquid beverages, and confectionery.

 

 

“I am pleased to inform you that we have delivered a balanced growth in three out of our four product group categories, and seven out of twelve top brands grew at double-digit,” Suresh Narayanan, chairman and managing director (CMD), Nestle India, said in an earnings release. 

 

The company noted elevated consumption prices across the commodity portfolio during the quarter, alongside higher operational costs due to expansion, and higher finance costs because of borrowings from commercial banks to fund temporary operational cash flow requirements.

 

The powdered and liquid beverages category sustained its position as one of the largest growth drivers, registering double-digit growth, while Nescafe gained additional market share.

 

In the confectionary category, Kitkat emerged as the largest growth driver, registering double-digit growth, especially in the urban market, while Munch and Milkybar also gained momentum.

 

The company’s e-commerce (ecom) business maintained its momentum, contributing 12.5 per cent to domestic sales, driven by quick commerce (qcom), while exports registered a high double-digit growth, driven by foods, coffee, instant tea, and breakfast cereals, despite commodity headwinds. The company also launched Masala-Ae-Magic in the UK market during the quarter.

 

In its commodity outlook, the company said that coffee prices are expected to remain range-bound at current lower levels on account of a normal upcoming Vietnam crop. Meanwhile, cocoa and edible oil prices have stabilised and remain range-bound, and milk prices are anticipated to decrease with the onset of a favourable monsoon and flush season.

 

“As I conclude my tenure as the chairman and managing director of Nestlé India, I extend my heartfelt thanks to our partners, distributors, retailers, and suppliers for their collaboration and support. (Also to) The esteemed board of directors for their guidance, trust and wisdom, in both good and more stressful times,” added Naryanan, who is set to retire on July 31. 

 

“I am confident that Nestlé India will continue to thrive and soar to new heights, moving forward with greater focus and readiness for the future, fostering an inclusiveness and compassionate environment where every voice is valued. With much gratitude, it has truly been an honour and privilege to serve you. I carry with me cherished memories of the decade gone by,” he added.

 

Meanwhile, the company’s board approved the appointment of Manish Tiwary as chairman of the board. He is set to take over as the CMD of the company from August 1.