FMCG major Nestlé India Ltd. reported strong profit and revenue growth in the September quarter. However, the nestle India Q2 results failed to prevent a sharp fall in its share price on Thursday.
The company posted a consolidated net profit of Rs 1,009.61 crore for Q2 FY27, up 35.85% year-on-year (YoY) from Rs 743.17 crore in the corresponding quarter of the previous fiscal year. Revenue from operations rose 20.28% to Rs 6,788.34 crore from Rs 5,643.61 crore a year earlier.
Despite the growth, Nestlé India shares fell as much as 9% to an intraday low of Rs 1,259.70 on the BSE. The stock had closed at Rs 1,384.15 in the previous session.
The company's September-quarter performance showed growth across revenue, product sales, and operating earnings. Total income increased 20.52% YoY to Rs 6,808.60 crore, compared with Rs 5,649.15 crore in the year-ago period.
Total sales of products rose 20.46% to Rs 6,782.17 crore in Q2 FY27, against Rs 5,630.23 crore in Q2 FY26.
EBITDA, or earnings before interest, taxes, depreciation, and amortization, reflects the company's operating performance before these expenses. Its year-on-year increase indicates stronger operating earnings during the quarter.
The results also highlighted the company's focus on volume growth and operational efficiency as it continued investing in its brands.
Also Read: Why Contextual Industrial Data Is Critical for AI-Ready Manufacturing in India
The sharp decline in the stock came despite double-digit growth in product sales and a higher profit. Market expectations and concerns about rising input costs may have influenced investor sentiment.
Reuters reported that the company's earnings were broadly in line with market expectations, disappointing investors who had anticipated a stronger performance. Rising food inflation and higher commodity costs also remain concerns for the consumer goods sector.
Nestlé India Chairman and Managing Director Manish Tiwary said the quarter delivered 20.5% growth, driven by robust, double-digit volume growth. He added that the company continued to improve operational efficiency while increasing investments behind its brands.
Advertising and marketing expenditure rose 46% during the quarter, reflecting the company's push to support its brands.
Addressing cost pressures, Tiwary said, “Rising inflation, particularly food inflation, is a reality.”
He added that the company would focus on innovation, product improvements, sustained brand investments, productivity, and operational efficiencies to manage commodity cost pressures.
The nestle India Q2 results therefore present two contrasting signals: strong financial growth and continued pressure from inflation and market expectations. Investors will watch how the company balances brand investments, operating efficiency, and rising costs in the coming quarters.
.jpg "Industrial Manufacturing")
We use cookies to ensure you get the best experience on our website. Read more...
