Nestle India gains as Q3 PAT jumps 46% YoY to Rs 1,018 cr

Nestle India added 3.41% to Rs 1,331.60 after it has reported a 46.24% increase in standalone net profit to Rs 1,018.06 crore on 18.56% jump in revenue from operations to Rs 5,667.04 crore in Q3 FY26 over Q3 FY25.

Profit before tax (PBT) rallied 26.65% to Rs 1,168.07 crore in Q3 FY26 compared with Rs 922.26 crore in Q3 FY25.

In Q3 FY26, revenue from domestic sales stood at Rs 5,402.6 crore, up 18.32% compared with Rs 4,566.05 crore in Q3 FY25. Revenue from export sales jumped 22.86% YoY to Rs 240.92 crore in Q3 FY26.

During Q3 FY26, the company reported strong business momentum across channels. E-commerce, particularly quick commerce, witnessed accelerated growth, supported by sustained on-off platform demand generation. The organised trade channel continued to deliver broad-based growth across categories, aided by festive-season activations and the scale-up of new product launches.

 

In the out-of-home (OOH) segment, Duo Gusto, its hot and cold beverage solutionsaw robust machine deployments across quick service restaurants, educational institutions and corporate offices.

The export business posted high double-digit growth, driven by strong demand across product categories, with coffee continuing to perform well. The company expanded its product portfolio in Thailand and Papua New Guinea through the launch of new SKUs of MUNCH wafer chocolates, while in the B2B segment it added new customers for Instant Tea, further strengthening its market presence.

On the domestic front, product groups delivered a strong performance in Q3 FY26, led by broad-based volume growth across categories. In the prepared dishes and cooking aids segment, MAGGI Noodles posted double-digit volume growth, supported by a new thematic campaign, Me & Maggi, So Good Together, aimed at driving urban consumption, accelerating rural penetration through an optimised price-pack portfolio, and improving traction in the value-added range, including the new spicy variants and Double Masala. Masala-ae-Magic continued its strong momentum, aided by efforts to expand household penetration and usage frequency.

In milk products and nutrition, MILKMAID sustained its strong growth trajectory, while EVERYDAY showed recovery across key geographies. Toddler milk products delivered a healthy performance and reported market share gains during the quarter.

The confectionery segment recorded robust growth, with KITKAT posting high double-digit volume growth, particularly in rural markets, while MUNCH continued its double-digit growth momentum. MILKYBAR also delivered a strong performance. During the quarter, the company launched several festive packs, including KITKAT Celebreak and Goldenbreak, while variants such as KITKAT Delights Salted Caramel and Hazelnut, KITKAT Dark Sharebag and KITKAT Duo continued to perform well.

In powdered and liquid beverages, NESCAFCLASSIC, NESCAFSUNRISE and NESCAFGOLD maintained strong momentum, helping bring over 4.1 million households into the coffee category in 2025. NESCAFReady-to-Drink cold coffee also recorded strong growth during the quarter.

On the commodity front, milk prices have remained firm despite the flush season, supported by robust demand. Edible oil prices continue to stay elevated and are expected to trade sideways during the first half of calendar year 2026. The upcoming wheat harvest in April 2026 is expected to be healthy, while coffee prices have stabilised at levels lower than last year, aided by favourable crop yields in Vietnam and India.

Manish Tiwary, chairman and managing director (MD) of NestlIndia, said, the company reported robust, broad-based volume-led sales growth of 18.5% during the quarter, resulting in its highest-ever quarterly turnover of Rs 5,643.5 crore and the strongest volume growth in nearly five years. EBITDA margin stood at 21.3%, while consumer-focused media and advertising spend increased 42% year-on-year. The performance was driven by capacity expansion, brand investments and market recovery following GST benefits.

Tiwary said 2025 marked a landmark year for the company, recording the highest absolute and percentage reach gains outside the COVID period, led by strong rural expansion and best-in-class urban performance. All four product groups delivered positive volume-led growth, with three witnessing robust double-digit growth. Confectionery was the fastest-growing segment, supported by higher advertising spends, expanded store presence, premiumisation and quick commerce-led in-home penetration.

Powdered and liquid beverages recorded double-digit growth for the 18th consecutive quarter, while prepared dishes and cooking aids posted strong double-digit value growth on accelerated volumes. Milk products and nutrition delivered mid-single-digit growth, with improving trends in consumer-facing channels. The pet food business reported strong double-digit growth, aided by expansion of the PRO PLAN dog range, while Nespresso continued to gain momentum in the premium segment.

All business channels reported strong double-digit growth. NestlProfessional delivered robust growth driven by out-of-home expansion across beverage vending solutions, confectionery and MAGGI Coconut Milk Powder. General trade saw a sharp acceleration, led by rural markets, supported by deeper technology adoption, including DMS at sub-distributor levels. E-commerce continued to grow strongly on the back of new launches, better platform availability and festive activations.

Looking ahead, Tiwary said the company remains focused on bold innovation, consumer-centricity, operational excellence and leveraging automation and technology to drive efficiencies and long-term value creation.

The company has approved, in principle, investments in two special purpose vehicles (SPVs) with Adani Green Energy Ltd and Radiance Renewables, subject to customary closing conditions, for setting up captive renewable energy power plants. Under the arrangement, the company will invest up to 26% in the equity capital of each SPV and will consume at least 51% of the annual power generated by each project, enabling access to cost-effective green energy for its manufacturing facilities.

The company declared an interim dividend of Rs 7 per equity share of face value Rs 1 each for the financial year 202526. The interim dividend will be paid on or after 26 February 2026, to shareholders whose names appear in the register of members or in the register of beneficial owners maintained by the depositories as on the record date of 6 February 2026, as previously intimated to the stock exchanges.

Nestle India is a subsidiary of Nestle which is a Swiss MNC. The company operates in the Food segment.

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