All four product groups recorded strong double-digit growth. The Board of Directors of Nestlé India today approved the results for the first quarter of financial year 2026-2027:
Commenting on the results, Mr. Manish Tiwary, Chairman and Managing Director, Nestlé India, said: “We delivered a strong quarter with sales growth of 25.4% led by volume growth. Sales stood at INR 6,363.3 crore, powered by continued consumer trust in our brands and a strong focus on execution. Exports delivered 35.6% growth, despite ongoing geopolitical headwinds.
During the quarter, we further accelerated operational cost savings, and continued to step up investments behind our brands with advertising spends increasing by over 40%, with a healthy EBIDTA margin of 24.2%. Profit After Tax for the quarter stood at Rs. 975.1 crore, up 47.9% over the corresponding quarter.
The Confectionery product group recorded another strong quarter of volume led double-digit growth that was bolstered by premiumisation and e-commerce, with strong underlying transaction across powerhouse brands. KITKAT continued to gain market share.
The Powdered and Liquid Beverages product group recorded another quarter of strong and consistent performance, marking the 20th consecutive quarter of double-digit growth. This performance was powered by increased coffee penetration, accelerated premiumization, and deeper category relevance across consumer segments, supported by sustained brand-building that continues to strengthen our equity and by an expanding footprint.
Over the past year, NESPRESSO has expanded its presence across Delhi NCR, Mumbai and Bengaluru through a range of retail formats, including boutique, pavilion and pop-up. The launch of the NESPRESSO pavilion in Bengaluru this quarter marks another step in taking the brand closer to discerning consumers, meeting them in the spaces and moments where they seek premium coffee experiences.
The Milk Products and Nutrition product group recorded strong, broad-based performance built on underlying volume growth across key brands and channels. The delivery was supported by disciplined brand investments in strengthening category fundamentals, including digital activation, consumer-needs oriented portfolio refinement and continued focus on execution excellence across the portfolio.
The Pet Food business delivered strong double-digit growth, supported by portfolio expansion, wider distribution and sharper consumer engagement. We strengthened our presence in cat food with the launch of FELIX Gravy Lover and PRO PLAN Cat, addressing evolving pet parent needs across mainstream and premium offerings.
General Trade continued to deliver strong double-digit growth across town classes, with rural markets leading the momentum. Rural distribution touchpoints expanded during the quarter, strengthening direct reach and improving the quality of coverage. This progress was underpinned by technology-led interventions, including DMS adoption at the sub-distributor level, which helped deepen retailer engagement and improve execution across rural markets.
Even as we delivered strong business performance, we remained focused on building the capabilities, partnerships and value chains that strengthen our business for the long term. This is especially evident in our sustainability journey, particularly in the work we are doing to build a more resilient dairy value chain. Across our milk procurement network, we continue to work closely with dairy farmers to promote climate-resilient and resource-efficient practices that are meaningful on the ground. These efforts help strengthen livelihoods, reduce environmental impact and create a dairy ecosystem that is more productive, resilient and future-ready.
Financial Highlights: Quarter 1, 2026-2027: Total Sales of INR 6,363.3 crore, Total Sales Growth at 25.4%, Domestic Sales Growth at 25.0%, EBITDA margin of 24.2%, Profit After Tax stood at INR 975.1 crore, up 47.9% over the corresponding quarter, Earnings Per Share of INR 5.06
Commodity markets remain mixed. Coffee is expected to remain well supplied, supported by higher production in Brazil and Vietnam, though short-term volatility may persist due to fund activity and weather-related harvest delays in Brazil. Cocoa and sugar remain under pressure, with cocoa impacted by erratic rainfall across key producing origins and sugar strengthening on lower-than-expected crop estimates, with uneven monsoon conditions linked to El Niño posing a risk to the next crop. Edible oil prices remain stable at elevated levels. Wheat and milk are expected to remain range-bound, while the protein complex (including dairy based proteins) continues to face inflationary pressure as demand from nutrition and protein-fortification trends outpaces supply expansion.
