Nestlé India reported a 47.9% year-on-year rise in net profit for the first quarter of FY27, driven by robust volume-led growth across its portfolio, higher exports and continued premiumisation, while stepping up investments behind its brands.
The FMCG major posted a profit after tax of Rs 975.1 crore for the April-June quarter, while total sales rose 25.4% to Rs 6,363.3 crore, with domestic sales growing 25% and exports increasing 35.6% despite geopolitical headwinds. EBITDA margin stood at 24.2%.
"We delivered a strong quarter with sales growth of 25.4% led by volume growth," Chairman and Managing Director Manish Tiwary said, adding that the company accelerated operational cost savings while increasing advertising and brand-building expenditure by more than 40% during the quarter.
All four major product groups registered double-digit growth, supported by strong performance across sales channels.
The confectionery business continued its momentum with volume-led double-digit growth, aided by premiumisation and e-commerce, with KitKat gaining market share. The powdered and liquid beverages segment posted its 20th consecutive quarter of double-digit growth, driven by rising coffee consumption, premiumisation and expansion of the Nespresso retail footprint.
The prepared dishes and cooking aids business, led by the Maggi brand, delivered strong growth through product innovations, urban consumer engagement and rural expansion, while the milk products and nutrition portfolio recorded broad-based volume growth across brands and channels. The pet food business also posted double-digit growth following portfolio expansion and new product launches in the cat food category.
General Trade continued to record double-digit growth across town classes, with rural markets leading the momentum. The company expanded rural distribution touchpoints and deployed technology-led interventions, including distributor management systems at the sub-distributor level, to improve retailer engagement and market coverage.
Nestlé India said quick commerce remained a key growth engine for its e-commerce business, supported by improved product availability, platform-specific packaging and targeted marketing initiatives. Organised retail and out-of-home consumption also posted double-digit growth, aided by premiumisation and product innovation.
Exports continued to gain traction with the company expanding the Maggi portfolio in Europe and Canada, commencing exports of Nescafé Sunrise to Lebanon after launches in the UAE and Saudi Arabia, and securing a 4-Star Export House status.
Looking ahead, the company said commodity markets remain mixed. While coffee supplies are expected to improve on higher production in Brazil and Vietnam, cocoa and sugar prices continue to face pressure due to adverse weather conditions. Milk and wheat prices are likely to remain range-bound, whereas dairy-based proteins are expected to remain inflationary as demand outpaces supply.
