Business · Companies · 1 hr ago
Nestlé India posts 20.5% revenue growth as investors weigh slowdown risks
Nestlé India’s revenue rose 20.5% in Q2FY27, the quarter ending in September, to ₹6,782 crore.
The packaged-food company’s domestic sales grew 20.4% to ₹6,515 crore, while exports grew 22%.
Double-digit volume growth helped, with products including KitKat, Maggi and beverages contributing to sales.
Growth has eased from 25.4% in the June quarter, and the company expects the effects of a low comparison base and a goods and services tax boost to fade.
Investors pushed the shares down after results, amid concerns that growth could slow and food inflation could raise costs.
Nestlé’s operating margin rose to 23.8%, but cocoa, sugar and edible oil prices remain risks to profits.
The company’s ability to protect margins will be closely watched as it faces these costs, while analysts cited urban demand, product innovation and premium products as potential supports.
Nestlé India’s revenue rose 20.5% year-on-year to ₹6,782 crore in Q2FY27.
Domestic sales grew 20.4% to ₹6,515 crore and accounted for 96% of revenue.
The company’s growth has eased from 25.4% in the June quarter, as investors weigh the risk of a slowdown.
Rising food inflation and higher raw material costs pose risks to growth and margins.
Analysts cited steady urban demand, product innovation and strong brands as potential supports.
- Who
- Nestlé India.
- What
- It reported revenue growth of 20.5% year-on-year in Q2FY27.
- When
- Q2FY27, the September quarter.
- Where
- India; domestic sales accounted for 96% of revenue.
- Why
- Growth was supported by double-digit volume growth. The article also cites steady urban demand and product innovation as potential supports.
Investors concerned about slowing growth
Analysts who expect Nestlé India to remain relatively resilient
Growth outlook
Investors concerned about slowing growth
Investors may be anticipating slower growth as the benefits of a low base and GST-led boost fade.
Analysts who expect Nestlé India to remain relatively resilient
Analysts cited steady urban demand, product innovation and premium-product demand as supports.
Costs and margins
Investors concerned about slowing growth
Rising food inflation and higher raw material costs create risks.
Analysts who expect Nestlé India to remain relatively resilient
Analysts said strong brands, price hikes and productivity measures could help protect margins.
Nestlé India’s revenue growth was 23.4% year-on-year.
Revenue growth reached a multi-quarter high of 25.4% in the June quarter.
Nestlé India’s shares reached a 52-week high of ₹1,553.
Mihir Shah of Nomura wrote that growth would start moderating from Q3FY27 onwards.
Revenue was ₹6,782 crore, up 20.5% year-on-year.
- Q2FY27 revenue
- ₹6,782 crore
- Revenue growth
- 20.5% year-on-year
- Domestic sales
- ₹6,515 crore; 20.4% year-on-year growth
- Domestic share of revenue
- 96%
- Export sales growth
- 22%
- Q2FY27 EBITDA margin
- 23.8%, up 195 basis points
What people are saying
Rising inflation, particularly food inflation, is a reality,
urban-centric diversified and premium-focused businesses such as Nestlé are likely to perform better,
Steady urban demand, product innovation, strong brands supporting price hikes and growing demand for premium products should help the company protect its gross margins from uncertain rural conditions.
While we believe Nestlé’s strong financial performance versus peers will continue, the growth rate will start moderating from Q3FY27 onwards.