Nestlé India reports over 10% YoY revenue growth in Q2 FY26

Nestlé India Limited has reported strong top-line performance in the second quarter of FY26, with revenue from operations rising to Rs 5,643.6 crore, reflecting a 10.6% increase year-on-year and 10.7% sequential growth. Total income for the quarter stood at Rs 5,645.3 crore. Expenses for the quarter rose to Rs 4,616.7 crore, up 12.9% from the same period last year and 9.9% from the previous quarter, driven largely by higher input costs, employee benefits, and CSR-related spending.

Profit before tax came in at Rs 1,018.5 crore, registering a 14.7% increase quarter-on-quarter but declining 15.1% year-on-year due to a high base in the previous year, which included exceptional income. Net profit for the period stood at Rs 743.1 crore, up 14.9% sequentially but down 17.4% from Q2 FY25, reflecting the impact of higher costs and the absence of one-off gains.

Commenting on the results, Manish Tiwary, Chairman and Managing Director of Nestlé India, stated, “I am happy to report that domestic sales grew at a double-digit rate, led by volume growth. Three out of four product groups delivered strong volume-led double-digit growth. Our domestic sales reached Rs 5,411 crore, the highest ever recorded in any quarter. I would like to thank our employees for their commitment and resolve.” 

He added that the recent amendments in the Goods and Services Tax (GST) rates announced by the Government of India are a positive step for consumers and are expected to stimulate consumption, drive affordability, and contribute to the overall growth of the FMCG sector and the economy. Nestlé has been working closely with partners, distributors, wholesalers, and retailers to pass on the benefits of the revised GST rates across its product portfolio to consumers.

In the domestic business, the Prepared Dishes and Cooking Aids category continued to perform well, led by digital-first launches of MAGGI Double Masala and MAGGI Spicy, aimed at urban consumers. In rural markets, targeted pricing strategies for the MAGGI noodles portfolio contributed to market share gains. Enhanced media investments during the monsoon season helped strengthen the brand’s emotional connect, while Masala-e-Magic expanded household penetration through sampling, digital engagement, and recipe content. “The Prepared Dishes and Cooking Aids product group registered a strong double-digit value growth on the back of accelerated volume growth. MAGGI Noodles delivered a double-digit volume growth, while Masala-e-Magic continued its strong run,” Tiwary said.

The Milk Products and Nutrition segment delivered a mixed performance, with some categories showing growth while others remained muted. However, the company noted improving underlying trends in several parts of the portfolio. MILKMAID recorded robust growth, and toddler milk products gained market share. “Nonetheless, we are encouraged by the improving underlying trends in some segments,” the Chairman added.

In Confectionery, the company reported strong double-digit growth, underpinned by significant volume expansion. “KITKAT was the largest growth driver and continued to gain market share. India remains the second-largest KITKAT market for Nestlé worldwide,” Tiwary noted. The expansion of KITKAT’s numeric distribution, especially in rural areas, contributed to its performance, while MUNCH and MILKYBAR also grew at high double-digit rates. The company also introduced new offerings such as KITKAT Delights Salted Caramel and Hazelnut variants, and launched the Polo Sharebag to cater to sharing and gifting occasions.

The Powdered and Liquid Beverages segment maintained momentum, posting high double-digit growth. “NESCAFÉ continued to lead the coffee category, gaining market share and increasing household penetration,” Tiwary said. Growth in the category was supported by both entry-level packs and premium products like NESCAFÉ Gold and Roastery. Nespresso widened its reach, now available on Amazon in addition to its online store and boutique in Delhi. NESCAFÉ Ready-to-Drink beverages also performed strongly.

Nestlé’s Pet Food business reported high double-digit growth and achieved its highest turnover since being integrated into the India business. E-commerce saw strong acceleration, especially in quick commerce, helped by festive integrations, product launches, and improved availability. Organized trade delivered broad-based category growth, supported by seasonal activations and scale-up of new products. The Out-of-Home business also expanded, with KITKAT Spread gaining traction among chefs and dessert chains, and the ‘MADE WITH KITKAT’ initiative opening new consumption occasions.

Exports posted high double-digit growth, supported by strong global demand across categories. MAGGI Noodles continued to perform well, while the NESCAFÉ bulk portfolio expanded into the Middle East. The company launched NESCAFÉ Sunrise in the UAE, Saudi Arabia, Singapore, and New Zealand, and introduced KITKAT in Singapore and MILKMAID Doypack in Sri Lanka, reinforcing Nestlé’s international footprint.