Nestle India Q2 FY26 Results: Profit Dips 17% YoY, Revenue Up 9.5%; Shares Jump 3% After Earnings Beat

Packaged food giant Nestle India Ltd reported its financial results for the quarter ended September 30, 2025, i.e., Q2 FY26. The company saw an improved performance in terms of consolidated earnings this quarter in both revenue & profit, both; however, on a yearly basis, the FMCG majors' net profit declined sharply by 17%, mainly because of continued cost pressures in the consumer sector.

Revenue Up 10% QoQ and 9.5% YoY

Nestle India's total income for Q2 FY26 stood at Rs. 5,645 crore, up from Rs. 5,102 crore in Q1 FY26 and Rs. 5,109 crore in Q2 FY25, with a 10.6% sequential rise and a 9.5% increase YoY.

The company's revenue from operations came in at Rs. 5,643 crore, compared to Rs. 5,106 crore a year earlier. The growth was mainly led by solid momentum across its key product segments, such as Maggi noodles, Nescafe coffee, KitKat chocolates, and Milkmaid condensed milk.
Domestic sales contributed Rs. 5,410 crore, up 10.8% QoQ and 10.8% YoY, while export sales stood at Rs. 219 crore, up slightly from Rs. 192 crore in the same period last year.

Profit After Tax

Nestle India reported a net profit (PAT) of Rs. 743 crore for Q2 FY26, a 15.1% increase QoQ compared to Rs. 647 crore in the previous quarter. However, profit declined 17.4% YoY against Rs. 899 crore reported in Q2 FY25.

The decline on a yearly basis was largely due to higher input and marketing costs, but the company managed to improve margins sequentially with effective cost control and stronger sales during the quarter.

Operating Performance and Expenses

Total expenses for the quarter stood at Rs. 4,617 crore, up from Rs. 4,199 crore in Q1 FY26 and Rs. 4,310 crore in Q2 FY25. The rise was primarily driven by higher raw material consumption, employee benefits, and advertising expenditure ahead of the festive season.

Profit before tax (PBT) was recorded at Rs. 1,018 crore, compared to Rs. 878 crore in the previous quarter and Rs. 1,204 crore in the same period last year. EBITDA margins remained stable, supported by strong domestic volume growth and improved supply chain efficiency.

Other Income and Tax Impact

Nestle India's other income for the quarter came in at Rs. 136 crore, slightly higher than Rs. 132 crore in Q1 FY26. Tax expenses rose to Rs. 265 crore from Rs. 213 crore in the previous quarter, consistent with the profit growth trend.

Nestle India Q1 FY26 Performance

In Q1 FY26, Nestle India reported a net profit of Rs. 646.5 crore, marking a 15.4% YoY decline from Rs. 764 crore in Q1 FY25. The company's total income rose 5.4% YoY to Rs. 5,100.2 crore, though sequentially it was down 7.5%. Domestic sales climbed to Rs. 4,860 crore, while export sales improved to Rs. 213.9 crore, reflecting steady global demand. EBITDA for the quarter was Rs. 1,100 crore, largely flat YoY, with margins narrowing to 21.6% from 22.9% a year ago.

Nestle India Share Price Today

After the announcement of its Q2 FY26 financial results on October 16, Nestle India shares jumped sharply in Thursday's trading session. The stock climbed 3.20%, to trade at Rs. 1,260.50 per share at the time of writing.