Brokerages raise target price on Nestle as Q3 results beat expectations

Nestle reported an 18.6 per cent growth in consolidated net sales to ₹5,667 crore from ₹4,780 crore in the year-ago period

Nestle reported its Q3FY26 numbers on Friday, during market hours. In the December quarter, the company’s net profit surged 45.1 per cent year-on-year (Y-o-Y) to ₹998 crore, as compared to ₹688 crore in Q3FY25. 

 

The company reported an 18.6 per cent growth in consolidated net sales to ₹5,667 crore from ₹4,780 crore in the year-ago period.

 

On Friday, Nestle share price gained over 3 per cent; however, it fell over 4 per cent in the special budget session arranged on Sunday, when the market crashed, and Sensex closed at 80,722.94, down 1,546.84 points or 1.88 per cent.

Brokerages’ view on Nestle Stock

Nomura | Buy | Target raised to ₹1,450 from ₹1,400

Nomura said Nestlé India delivered its strongest quarterly volume growth in recent years, with Q3FY26 revenue rising 18.6 per cent Y-o-Y, well above its estimate and the Bloomberg consensus of 10 per cent, and the highest growth in the past 10 quarters. 

 

 

Nomura noted that while Nestlé benefited from a goods and services tax (GST)-led recovery like peers, the quarter did not see any one-off restocking. Instead, the sharp step-up in volumes was driven by a combination of aggressive brand building (ad spends up 42 per cent Y-o-Y), expanded distribution reach (highest-ever numeric additions last year now yielding results), greater focus on e-commerce and quick-commerce, and penetration-led growth from the RUrban strategy, with rural and general trade channels posting strong double-digit growth. The brokerage highlighted management’s “Fast, Focused and Flexible” growth mantra under the new MD, with emphasis on consumer, technology, and agility. It also noted the appointment of Edouard Mac Nab as CFO, effective March 1, 2026, for a five-year term.

 

Nomura has raised FY26–FY28 earnings per share (EPS) estimates by 1 per cent, factoring in higher volumes and some margin pressure. It projects an EPS compound annual growth rate (CAGR) of 17 per cent over FY26–FY28, with slower demand flagged as a key risk.  ALSO READ | Bajaj Auto Q3 results in-line; analysts see further upside on exports, EV tailwinds

Motilal Oswal Financial Services | Neutral | Target raised to ₹1,400 from ₹1,300

The brokerage said Nestle India is set to benefit from GST 2.0, which is expected to stimulate consumption and drive affordability across the FMCG sector. Approximately 85 per cent of Nestle’s portfolio has benefited from these GST rate cuts, leading to strong volume growth in both low-unit price (LUP) points and larger packs. 

 

Beyond macro tailwinds, the brokerage highlighted that Nestle’s internal initiatives—including brand investments, distribution strengthening, and capacity expansion—are driving robust performance. Motilal Oswal has raised its FY26–28 EPS estimates by 2–4 per cent, modeling a revenue/Earnings before interest, tax, depreciation and amortisation (Ebitda)/profit after tax (PAT) CAGR of 12 per cent/15 per cent/17 per cent over the same period.   ALSO READ | Sun Pharma growth momentum to sustain post Q3 profit jump, say brokerages

JM Financial Institutional Securities | Reduce | Target hiked to ₹1,305 from ₹1,250

JM Financial said Nestle India’s Q3FY26 results beat expectations, supported by healthy double-digit volume growth, the strongest among food and beverage peers reported so far. 

 

On the cost front, the brokerage noted a mixed commodity outlook—milk prices remain firm, edible oil prices are expected to stay elevated though stable, while coffee prices have stabilised at lower levels.

 

Analysts have raised sales estimates by 3–4 per cent, but factoring in higher A&P spends and depreciation, EPS estimates have been increased by a modest 1–2 per centfor FY26–FY28E. 

 

While Nestle’s execution has been best-in-class in recent quarters and near-term sales momentum is expected to continue on a soft base over the next two quarters, the brokerage believes this strength is already reflected in valuations; therefore, it has a ‘Reduce’ rating, while raising the target price.

 

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