Nestle India Q2 FY26 Results: Profit Slips 17.4% to ₹743 Crore
The headline announcement by Nestle India on Thursday, October 16, 2025, for its July-September quarter (Q2 FY26) results revealed a mixed financial performance, marked by robust revenue growth but a sharp decline in net profit.
The Key Figures: How and When
When was the announcement?
Nestle India announced its Q2 FY26 financial results on Thursday, October 16, 2025. The quarter being reported is the July to September 2025 period.
How did the profit slip? (Why the Decline)
The company reported a 17.4% decline in its consolidated net profit, which fell to ₹743 crore in Q2 FY26, compared to ₹899.5 crore in the same quarter last fiscal (Q2 FY25).
The primary reason for the profit decline, despite strong sales growth, was:
High Base Effect: The profit figure in Q2 FY25 included a significant exceptional gain (estimated at around ₹290-300 crore) from business divestitures. Excluding this one-off gain from the previous year, the Q2 FY26 profit performance appears structurally stable or slightly positive on an adjusted basis.
Higher Expenses: Total expenses for the quarter rose by 12.9% to ₹4,616.73 crore, mainly due to elevated input costs (like milk, cocoa, and edible oils) and increased spending on advertising and promotions to support brand growth and new launches.
Marginal Margin Contraction: The EBITDA margin (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the quarter contracted slightly to 21.9% from 22.8% in the year-ago period, reflecting the pressure from higher raw material costs.
Revenue Table (Q2 FY26)
The company’s revenue showed strong performance, achieving its highest-ever quarterly domestic sales.
| Revenue Category | Q2 FY26 (₹ Crore) | Q2 FY25 (₹ Crore) | YoY Growth (%) |
| Consolidated Revenue | 5,630.23 | 5,074.76 | 11.0% |
| Domestic Sales | 5,411.02 | 4,883.14 | 10.8% |
| Exports | 219.21 | N/A | 14.4% |
Export to Sheets
Source: Nestle India Regulatory Filings / Press Trust of India
Conclusion and Key Highlights
The results indicate that Nestle India's core business momentum remains exceptionally strong, driven by consistent consumer demand, even as temporary cost pressures and a previous year's one-off gain impacted the reported net profit.
Key Highlights:
Volume-Led Growth: The double-digit domestic sales growth was primarily volume-led, suggesting healthy consumer uptake rather than just price increases.
Highest Ever Domestic Sales: Domestic sales of ₹5,411 crore marked a new record for the company in any quarter.
Product Performance: Three out of four product groups delivered strong, volume-led double-digit growth.
Confectionery (KitKat, Munch) and Prepared Dishes & Cooking Aids (Maggi Noodles) were major growth drivers.
Powdered & Liquid Beverages (NESCAFÉ) delivered strong double-digit growth, gaining market share.
Channel Growth: The company saw robust performance across channels, especially in e-commerce (quick commerce) and organized trade, leveraging festive campaigns and new product launches.
Management Outlook: The company's Chairman and MD, Manish Tiwary, expressed confidence in the sustained penetration-led volume growth strategy and reaffirmed plans to increase investment in brands and manufacturing capacity. The management also expects some commodity prices, like milk and coffee, to soften post-festive season, which could ease cost pressure in the coming quarters.