Nestle India Q1FY26 Results: Profit Slumps 15% YoY Despite 5.8% Revenue Growth; Shares Tank 5%

FMCG giant Nestle India announced its financial results for the first quarter of FY26 (April to June 2025), reporting a mixed performance. While revenue saw a modest year on year (YoY) growth, the company faced significant margin pressure, resulting in a sharp drop in net profit.

Nestle India Q1FY26 Results Update

Nestle India posted a net profit of Rs.646.5 crore in Q1FY26, showing a 15.4% decline YoY compared to the Rs 764 crore it reported in Q1FY25.

The company's total income for the quarter stood at Rs. 5,100.2 crore, a 5.4% increase YoY, but a 7.5% decline QoQ. The growth was supported by strong domestic performance, with domestic sales rising to Rs. 4,860 crore from Rs. 4,608.5 crore YoY. Additionally, export sales increased to Rs. 213.9 crore from Rs. 184.4 crore during the same period last year.

Revenue from operations stood at Rs. 5,098.5 crore, up 5.8% year-on-year (YoY) from Rs. 4,873 crore, but down 6.6% quarter-on-quarter (QoQ) from Rs. 5,474.6 crore in the previous quarter.

The company's domestic sales came in at Rs. 4,860 crore, rising from Rs. 4,608.5 crore YoY, while export sales stood at Rs. 213.9 crore, compared to Rs. 184.4 crore in Q1FY25.

In its Q1FY26 consolidated results, the company registered a total income of Rs. 5,100.2 crore for the quarter ended June 30, 2025. With a 5.4% YoY increase from Rs. 4,853 crore in Q1FY25, BUT a 7.5% QoQ decline from Rs. 5,512 crore in Q4FY25.

On the expenses side, Nestle India incurred Rs. 4,199.7 crore in total expenses in Q1FY26, up from Rs. 3,844 crore in Q1FY25, a 9.2% YoY rise but lower than Rs. 4,307.6 crore in the previous Q4FY25.

The Profit Before Tax (PBT) stood at Rs. 887.8 crore, with an 11.9% decline YoY from Rs. 1,009.1 crore in Q1FY25 and a 25.5% drop QoQ from Rs. 1,192.1 crore in Q4FY25.

EBITDA for the quarter was muted at Rs. 1,100 crore, with the EBITDA margin narrowing to 21.6% from 22.9% last year, mainly based on rising costs and operational pressure.

Overall, while Nestle India reported modest growth in revenue YoY, margin pressure and higher costs led to a major decline in profitability both annually and sequentially.

Nestle India Shares Today

After the earnings announcement, Nestlé India shares fell over 5% intraday. As of noon on July 24, the stock was trading at Rs. 2,325.60, down 5.17%.

The stock had been trading range-bound throughout the week, but today's sharp fall dragged it closer to its 52-week low of Rs. 2,110. So far in 2025, Nestle India shares have gained around 7%, but over the past 12 months, the stock is down 8.15%.