Nestle India tops estimates on volumes and mix in Q2 FY26; shares soar 4.5%

New Delhi: Nestlé India delivered a volume-led quarter that beat Street expectations, sending the stock up about 4.5% at close on Thursday, even as the reported net profit looked lower on a high base. 

Consolidated revenue from operations rose to Rs 5,643.6 crore in Q2 FY26 (July-September), up ~10.6% year-on-year, with record domestic sales of Rs 5,411.0 crore led by double-digit growth in three of four product groups. 

On the company’s preferred metric, EBITDA came in at ~Rs 1,236.6 crore, or 22.0% of sales, underlining operating resilience despite raw-material headwinds. 

Profit after tax (consolidated) stood at Rs 743.2 crore, while standalone PAT was Rs 753.2 crore and EPS Rs 3.90. 

The year-on-year decline in PAT primarily reflects the absence of last year’s one-off gains (exceptional income of Rs 290.8 crore in the base quarter) rather than any deterioration in the core franchise. 

On an underlying basis, the quarter was driven by broad-based volume growth, mix improvements and strong execution in modern trade, quick commerce and out-of-home channels. 

On the topline, momentum was clear across the P&L definitions used by the company: Sales of Products at Rs 5,630.2 crore (up 10.9% YoY) and Revenue from Operations at Rs 5,643.6 crore (up ~10.6% YoY). 

Domestic sales at Rs 5,411.0 crore were the highest ever in a quarter, growing 10.8% YoY, while exports also posted a strong double-digit print. Management’s commentary pointed to penetration-led volume gains and continued share wins in key categories. 

By category, Confectionery led growth, with KitKat as the largest driver and ongoing rural distribution gains; Munch and Milkybar also posted high double-digit growth. Powdered & Liquid Beverages delivered another strong quarter, with Nescafé gaining penetration and premium lines (Nescafé Gold, Roastery) supporting upgrades. 

In Prepared Dishes & Cooking Aids, Maggi Noodles delivered double-digit volume growth, helped by pricing architecture and urban value-added launches (e.g., Double Masala, Spicy range), while Masala-e-Magic continued its household-reach push. 

Milk Products & Nutrition showed a mixed print but improving trends in parts of the portfolio. The Pet Food business posted high double-digit growth and its highest turnover since integration. 

On profitability, the company reported EBITDA at ~Rs 1,236.6 crore (22.0% of sales). Raw-material intensity ticked up versus last year (management flagged an increase in materials as a percentage of sales), but the margin print stayed healthy on scale, mix and disciplined overheads. 

Below the line, depreciation and lease costs remained steady; finance costs were modest; and the associate’s contribution was small. Consolidated PAT at Rs 743.2 crore and standalone PAT at Rs 753.2 crore; therefore needs to be read against the prior period’s exceptional income, not as a signal of operating slowdown. 

Working capital remained well managed. Inventories reduced versus March, trade receivables were stable, and operating cash flows for the half-year stayed strong, supporting brand and capacity investments. The balance sheet showed adequate liquidity, with cash and equivalents rising sequentially. The Board approved the unaudited results on October 16, 2025. 

Despite the headline PAT decline, brokerage trackers and market reports called out the beat vs estimates on core operating metrics, the record domestic sales, and the 22% EBITDA margin as the key drivers of confidence. Nestlé India’s shares closed up ~4.5–5%, touching fresh highs, with analysts highlighting continued volume strength and category leadership as catalysts into the festive quarter. 

On the outlook, management said it expects milk prices to soften after the festive season, with the flush season setting in; coffee to stabilise as Vietnam and India crops normalise; and the global cocoa balance to improve after two years of demand correction. Edible oil remains tight globally and could stay firm. 

Against that backdrop, the company reiterated plans to accelerate brand investments and capacity, including a new Maggi Noodles line at Sanand, as it pursues penetration-led growth across channels. 

Key numbers at a glance (all in crores):

• Revenue from operations (consolidated): Rs 5,643.6

• Sales of Products (standalone disclosure): Rs 5,630.2

• Domestic sales: Rs 5,411.0

• EBITDA: ~Rs 1,236.6 (22.0% of sales)

• PAT (consolidated): Rs 743.2 | PAT (standalone): Rs 753.2

• EPS (standalone): Rs 3.90

• Exceptional income in base quarter (Q2 FY25): Rs 290.8 (credit)