Near-term recovery, margin expansion key drivers for Nestle India

Nestle India reports a 5.9% YoY revenue growth in Q1FY26, with a focus on recovery and margin expansion despite challenges from high commodity prices

Nestle India reported a 5.9 per cent year-on-year (Y-o-Y) revenue growth in the first quarter of financial year 2026 (Q1FY26) with domestic sales up 5.5 per cent.

 

The management said that except for the milk products and nutrition, all other categories recorded volume growth. Out of the top-12 brands, seven grew at double digits. Export revenue grew 16 per cent Y-o-Y, driven by foods, coffee, instant tea, and breakfast cereals.

 

The gross margin contracted 250 basis points (bps) Y-o-Y (down 100 bps Q-o-Q) to 55.2 per cent due to high commodity prices. Management indicated that coffee, cocoa, and edible