Nestlé India hikes ad spends 46% in Q2 FY27

Nestlé India stepped up advertising and marketing expenditure by 46% in Q2 FY27, as the company recorded total sales of ₹6,782.2 crore, marking a 20.5% increase over the year-ago quarter. The growth was backed by double-digit volume gains and performance across its key product categories.

The rise in advertising and marketing outlay comes amid continuing commodity cost pressures and food inflation, with the company balancing investments in its brands against efforts to drive volumes, widen distribution and deepen consumer engagement across channels. Chairman and Managing Director Manish Tiwary highlighted the company’s focus on operational efficiencies even as it increased spending behind its brands. Innovation, portfolio renovation and productivity improvements remain central to its approach to navigating inflationary pressures.

The company’s profit after tax (PAT) increased 36.3% to ₹1,026.8 crore, while the EBITDA margin came in at 23.8%. Domestic sales grew 20.4% during the quarter, according to its business update.

Nestlé India reported broad-based growth across its portfolio, with confectionery, beverages and prepared dishes among the businesses contributing to the quarter’s performance. Its confectionery business delivered double-digit, volume-led growth, supported by market share gains in KitKat and sustained momentum in Munch and Milkybar. The company also extended its premium offerings with the launch of KitKat Delights Choco Lava.

In powdered and liquid beverages, growth was supported by wider household reach, affordability and premiumisation within the coffee portfolio. Nescafé Classic continued to bring new households into the category, while the relaunch of Nescafé Sunrise reinforced its presence in the chicory-coffee segment. Nescafé Gold sustained double-digit growth, and the ready-to-drink coffee business continued to expand.

The prepared dishes and cooking aids segment also recorded strong growth. Maggi noodles benefited from deeper rural penetration, while Nestlé India continued to encourage wider household use of Maggi Masala-ae-Magic by highlighting its applications in regional cooking.

The milk products and nutrition portfolio posted broad-based growth, supported by brand-building investments and portfolio optimisation. Its pet food business also registered strong double-digit growth, driven by digital consumer engagement and a focused distribution strategy.

E-commerce remained an important growth channel for Nestlé India, with the company focusing on product availability, channel-specific assortments, digital shelf execution and targeted shopper engagement.

Growth extended to general trade, which recorded double-digit gains across town classes. Rural markets led the performance, aided by the expansion of distribution touchpoints that strengthened the company’s direct reach and market coverage.

The out-of-home business also grew across categories, supported by customer acquisition and retention, product innovation and premiumisation. Within beverages, the expansion of Nescafé Duo Gusto, which the company describes as its first hot-and-cold coffee machine, and a broader range of cold beverage solutions contributed to the business.

Exports recorded double-digit growth during the quarter as Nestlé India expanded its portfolio and developed new markets. Maggi Masala-ae-Magic entered Canada, while Nescafé Sunrise expanded into five West African markets. The company also introduced a new instant coffee variant in the Middle East. Digitalisation is being used to strengthen sales execution. Building on Nestlé India’s NestMitra platform for retailers, the company is equipping sales teams with digital tools that offer near-real-time market insights, helping them identify opportunities and improve engagement.