Why Did Nestle India’s Q2 Profit Drop Over 17%?
Click to start listening
Synopsis
Nestle India has reported a significant decline in its Q2 profit, dropping over 17% to Rs 743 crore while seeing a remarkable growth in revenue. Discover how various segments performed and what the company has to say about future trends.
Key Takeaways
- Q2 profit fell by 17% to Rs 743 crore.
- Revenue grew by 11% to Rs 5,643 crore.
- Expenses rose by 13% to Rs 4,617 crore.
- EBITDA margin decreased to 21.9%.
- Mixed performance in Milk Products and Nutrition segment.
Mumbai, Oct 16 (NationPress) Nestle India, recognized as the leading FMCG entity in the country, announced on Thursday a notable 17% drop in its consolidated net profit for the July-September quarter of the current financial year (Q2 FY26), reporting a profit of Rs 743 crore compared to the same timeframe last fiscal year (Q2 FY25).
Despite this decline in profit, the company experienced an 11% year-on-year increase in revenue from operations, amounting to Rs 5,643 crore.
During this quarter, expenses surged by 13%, reaching Rs 4,617 crore. The EBITDA margin for Nestle India stood at 21.9%, a slight decrease from 22.8% in the same quarter of the previous financial year.
The maker of Maggi reported a total sales growth of 10.9% year-on-year, with domestic sales up by 10.8%, indicating a consistent demand in the Indian market.
The company credited this double-digit growth to robust volume performance.
Profit before exceptional items and tax amounted to Rs 1,028.52 crore, while earnings per share (EPS) reached Rs 3.90.
EPS for the same period last year was Rs 3.88, adjusted for a significant exceptional income from business divestitures.
Nestle India noted that its Milk Products and Nutrition segment exhibited mixed results, with some areas showing growth while others remained subdued.
Nevertheless, the company expressed optimism regarding improving underlying trends in specific segments.
"The Milk Products and Nutrition product group had a varied performance, with certain segments showing growth while others remained subdued. However, we are encouraged by the improving underlying trends in some segments," stated Nestle India.
The Powdered and Liquid Beverages segment, spearheaded by NESCAFE, reported another quarter of strong double-digit growth.
According to the company, NESCAFE continued to dominate the coffee category, increasing its market share and household penetration.
"The Powdered and Liquid Beverages product group achieved another quarter of high double-digit growth. NESCAFE maintained its lead in the coffee market, enhancing market share and household penetration," it remarked.
Point of View
It is crucial to recognize Nestle India's resilience in a challenging financial landscape. Despite a decline in profit, their ability to maintain operational growth and adapt to market demands reflects their commitment to navigating economic fluctuations. This highlights the vital importance of strategic planning and adaptability in the FMCG sector.
NationPress
16/10/2025
Frequently Asked Questions
What caused the decline in Nestle India's Q2 profit?
The decline in Nestle India's Q2 profit is attributed to various factors, including rising expenses that increased by 13% during the quarter.
How did Nestle India's revenue perform in Q2 FY26?
Nestle India reported an 11% year-on-year increase in revenue from operations, amounting to Rs 5,643 crore.
What was the earnings per share (EPS) for Nestle India in this quarter?
The earnings per share (EPS) for Nestle India in Q2 FY26 was Rs 3.90.
Which segment of Nestle India showed mixed performance?
The Milk Products and Nutrition segment exhibited mixed performance, with some areas experiencing growth while others were subdued.
Did Nestle India see growth in its Powdered and Liquid Beverages segment?
Yes, the Powdered and Liquid Beverages segment, led by NESCAFE, reported another quarter of strong double-digit growth.
