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Shares of Nestle India surged more than 2 per cent to Rs 1,490 on Wednesday after the company reported a 47.9 per cent year-on-year increase in its profit after tax for the first quarter of FY2026-27 (April-June).
In an exchange filing, the company reporting the financial performance stated that its Profit After Tax (PAT) stood at Rs 975.1 crore during the quarter, up 47.9 per cent over the corresponding quarter of the previous year. Nestle India also reported total sales of Rs 6,363.3 crore during the quarter, registering a 25.4 per cent growth. Domestic sales grew 25.0 per cent, while the company posted an EBITDA margin of 24.2 per cent. Earnings per share for the quarter stood at Rs 5.06. The company said it further accelerated operational cost savings during the quarter while continuing to increase investments behind its brands. Advertising spends rose by over 40 per cent, even as the company maintained a healthy EBITDA margin of 24.2 per cent. According to the company, all four product groups delivered strong double-digit growth, supported by high double-digit growth across channels. It said the confectionery product group recorded another strong quarter of volume-led double-digit growth, supported by premiumisation and e-commerce. The company added that KITKAT continued to gain market share during the quarter. On the business front, Nestle India said its e-commerce business maintained strong growth momentum, with Quick Commerce emerging as a key growth lever. The company attributed the performance to improved product availability, a more tailored platform-specific pack portfolio across relevant categories, focused on- and off-platform media investments, and strong participation during key festive occasions. Commenting on the results, Manish Tiwary, Chairman and Managing Director, Nestle India, said, "We delivered a strong quarter with sales growth of 25.4 per cent 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." He added, "Exports delivered 35.6 per cent growth, despite ongoing geopolitical headwinds." The company said the quarter reflected strong demand across its product portfolio, continued investments in brands, and sustained momentum across e-commerce and Quick Commerce channels, contributing to robust sales and profit growth. (ANI)
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