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Nestlé India posts strong Q1, flags commodity cost risks

Nestlé India posts strong Q1, flags commodity cost risks

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NewsMint MoneyREITSNestlé India posts strong Q1, flags commodity cost risks Neethi Lisa RojanUpdated22 Jul 2026, 01:32

PM ISTNestle India's standalone net profit climbed 47.9% year-on-year to ₹975 crore in the June quarter, while

revenue from operations rose 25.1% to ₹6,378 crore. (Photo: AFP)AI Quick ReadNestlé India reported a sharp rise in

June-quarter (Q1FY27) profit and revenue, driven by broad-based growth across product categories and channels, while

warning that commodity costs and El Niño-linked supply risks remain key watchpoints.Shares of the maker of Maggi

noodles and KitKat chocolates rose as much as 3.94% to a 52-week high of ₹1,509 on the National Stock Exchange on

Wednesday after the company reported a sharp jump in earnings.Standalone net profit climbed 47.9% year-on-year to ₹975

crore in the June quarter, while revenue from operations rose 25.1% to ₹6,378 crore, the company said in a stock

exchange filing on Wednesday.Nestlé said sales growth was led by strong volumes, but did not quantify the volume

growth.Also Read | FMCG giants race to make India drink beyond summer“All four product groups delivered strong

double-digit growth, supported by high double-digit growth across channels,” Manish Tiwary, chairman and managing

director of Nestlé India, said in the filing.Analysts at Nuvama Institutional Equities expect FY27 volumes to grow 20%

year-on-year.Quick commerce boostGeneral trade posted strong double-digit growth across town classes, with rural markets

leading the momentum, the company said. It expanded rural distribution touchpoints during the quarter, strengthening its

direct reach.Quick commerce also emerged as a key growth driver, supported by improved product availability and a more

tailored, platform-specific pack portfolio across relevant categories.At the category level, powdered and liquid

beverages recorded their 20th consecutive quarter of double-digit growth, led by volume gains in Nescafe Classic and

Sunrise, alongside robust growth in the premium portfolio led by Nescafe Gold. The ready-to-drink business also scaled

rapidly during the quarter, the company said.The confectionery business, including KitKat and Munch, delivered another

quarter of volume-led double-digit growth, supported by premiumization and e-commerce.Also Read | Manish Tiwary wants to

make Nestlé India faster, flexible and focused with techThe Prepared Dishes and Cooking Aids business, including Maggi,

reported gains in market share and penetration during the quarter. The pet food business also posted strong double-digit

growth and introduced new products in the cat-food segment.Earnings before interest, taxes, depreciation and

amortization (Ebitda) rose 39.8% to ₹1,538 crore, while Ebitda margin expanded to 24.2% from 21.6% a year earlier.Cost

pressures persistEven as demand remained strong, Nestlé flagged raw material costs and weather as key risks to

monitor.The company said challenges in raw material procurement due to El Niño remain a key monitorable. Cocoa prices

have been affected by erratic rainfall across key producing regions, while sugar prices have strengthened because of

lower-than-expected crop estimates, “with uneven monsoon conditions linked to El Niño posing a risk to the next

crop,” the company said.Nestlé added that 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.Also Read |

Nestlé India flags shaky demand from urban middleclass as incomes lag“We are not expecting a price hike, but a

quantity (grams) reduction in products—shrinkflation,” said analysts Aniket Salunke, Yash Mitkar, and Foram Thosani

at Sunrise Gilts & Securities.“Recently, Maggi reduced 7-9% quantity in almost all their packets. Due to rising

inflation, we expect the margins to fall as palm oil is imported and the company does not increase the price,” they

added.Analysts at Nuvama said they expect most staples companies to report very strong numbers in both Q1 and Q2 and do

not see significant risks from El Niño for the second half of FY27 at this stage.About the AuthorNeethi Lisa

RojanNeethi Lisa Rojan is a senior correspondent focusing on the consumer goods and retail sector working from Mumbai

for Mint since 2026. She has been a journalist for a little over two years with Moneycontrol and The Morning Context.

She has covered the consumer and healthcare sectors in earlier roles. She was a double gold medallist during her

bachelor’s from Mahatma Gandhi University Kerala and post-graduation from Pondicherry University. With a background in

commerce and journalism, she brings a sharp analytical lens to stories on India’s fast-evolving consumer goods and

retail sector.<br><br>With an academic background in business administration and a keen eye for financial

statement analysis, she bridges the gap between corporate data and compelling narrative journalism. Her reporting is

characterized by a focus on how evolving consumer behaviours and regulatory changes impact India's largest

mass-market brands. She is a keen learner with diplomas in international business, human rights and journalism. She

specialized in business journalism at the Asian College of Journalism, Chennai. When she is not looking into shopping

carts, you can find her explaining the latest conspiracy theory.Q1 EarningsNestle IndiaGet Latest real-time updatesCatch

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