Nestle India Quarterly Results Q1 FY26

Nestlé India released its first-quarter FY26 results, offering a snapshot of its operational and financial performance in a changing economic environment. The company managed to achieve steady revenue growth, supported by both domestic consumption and overseas demand. However, profitability came under strain as higher raw material prices and increased operating expenses weighed on margins. The period was also notable for leadership changes and shareholder announcements, making it an important quarter in Nestlé India’s corporate journey.

Nestlé India reported revenue of ₹5,096 crore in Q1 FY26, reflecting 6% year-on-year growth. Despite this increase, the company’s net profit declined 13.4% YoY to ₹647 crore. This decline was largely attributed to rising commodity prices, particularly in food-grade raw materials, and additional costs linked to manufacturing expansion. Analysts note that while revenue growth indicates demand resilience, sustained input cost pressures continue to challenge earnings stability (Economic Times).

Profitability was constrained by:

• Commodity inflation – higher prices of milk, grains, and packaging materials directly increased production costs.
• Operational expansion – capacity enhancements added to fixed and operating expenses.

According to Reuters, Nestlé India’s total expenses increased by nearly 9% YoY, highlighting the ongoing challenge of balancing top-line growth with cost efficiency (Reuters).

Sales momentum was visible across both domestic and overseas markets:

• Domestic sales rose 5.5% YoY, supported by consistent demand for core FMCG products.
• Export sales grew by a robust 16% YoY, benefitting from a favourable product mix and wider international demand.

This dual-engine growth demonstrates Nestlé India’s ability to maintain relevance across consumer segments while tapping global markets for additional expansion opportunities (Angel One).

A significant leadership change was announced during the quarter. Manish Tiwary has been designated to take over as CEO and Managing Director from Suresh Narayanan, effective August 2025. The leadership shift is expected to influence the company’s long-term strategy as it navigates a competitive FMCG landscape (Storyboard18).

Additionally, the company declared a dividend of ₹10 per share, signalling a continued focus on shareholder returns despite short-term profitability pressures.

Nestlé India’s Q1 FY26 performance captures a balancing act: while revenue grew steadily, higher input costs dampened margins and profits. With domestic demand remaining firm and exports showing strong growth, the company continues to demonstrate resilience. The upcoming leadership transition adds another dimension to its future trajectory, making the next few quarters pivotal in shaping its performance outlook.