Nestlé India raises ad spend over 40% in Q1 FY27
Revenue grew 25% to Rs 6,378 crore, driven by volume growth, rural demand, exports and sustained momentum in quick commerce
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Published: Jul 22, 2026 12:40 PM | 2 min read
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- Nestlé India increased its advertising expenditure by over 40% year-on-year in Q1 FY27 to enhance consumer engagement, despite a challenging macroeconomic environment.
- The company reported a consolidated net profit of Rs 975 crore, a 48% increase year-on-year, and a 25% rise in consolidated revenue from operations to Rs 6,378 crore.
- Exports grew by 35.6% during the quarter, and the company maintained an EBITDA margin of 24.2%, with quick commerce continuing to show strong growth.
- Key product categories, including confectionery, liquid beverages, and pet food, experienced double-digit growth, driven by premiumisation, e-commerce demand, and urban consumer engagement.
Nestlé India significantly ramped up its brand investments in the first quarter of FY27, with advertising expenditure rising more than 40% year-on-year as the FMCG major doubled down on consumer engagement across categories despite an uncertain macro environment.
The increased brand spending came alongside a strong financial performance. The maker of Maggi noodles and KitKat chocolates reported a 48% year-on-year rise in consolidated net profit to Rs 975 crore for the quarter ended June 30, 2026 (Q1 FY27), supported by healthy volume growth, improving rural demand, higher exports and sustained momentum in quick commerce.
Consolidated revenue from operations grew 25% year-on-year to Rs 6,378 crore during the quarter. Sequentially, however, revenue was down 5.5% from Rs 6,747 crore reported in the January-March quarter (Q4 FY26).
"We delivered a strong quarter with sales growth of 25.4% led by volume growth. Sales stood at Rs 6,363.3 crore, powered by continued consumer trust in our brands," said Manish Tiwary, Chairman and Managing Director of Nestlé India.
The company also reported a 35.6% increase in exports during the quarter despite geopolitical headwinds, while maintaining an EBITDA margin of 24.2%.
Quick commerce maintained its strong growth trajectory during the quarter. According to the company, the channel benefited from platform-specific product packs, targeted media investments across both on-platform and off-platform campaigns, and stronger participation during festive events.
Among product categories, the confectionery business delivered another quarter of double-digit volume-led growth, aided by premiumisation and increasing demand through e-commerce. Nestlé India said KitKat continued to gain market share during the period.
The liquid beverages business registered its 20th consecutive quarter of double-digit growth, driven by rising coffee consumption, premiumisation and deeper category penetration.
The prepared dishes and cooking aids portfolio also posted strong double-digit growth, supported by greater engagement with urban consumers, continued rural expansion and product innovation.
Meanwhile, the company's pet food business sustained its strong double-digit growth momentum, reflecting growing consumer demand for the category.
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