FMCG major Nestle India Ltd reported a 36.3% year-on-year increase in standalone profit after tax (PAT) to ₹1,027 crore for the second quarter of FY27, compared with ₹753 crore in the corresponding quarter of the previous financial year, supported by broad-based growth across its product categories.
Total income rose 20.5% to ₹6,809 crore from ₹5,649 crore a year earlier. The company reported an EBITDA margin of 23.8%, reflecting its operating profitability amid increased spending on brands and market development.
The results point to continued momentum across Nestle India’s key businesses, with volume-led growth in confectionery and beverages, stronger rural distribution and expanding digital and e-commerce channels contributing to performance.
Marketing spend rises 46%
Nestle India increased advertising and marketing expenditure by 46% as it sought to strengthen its brands and expand consumer reach.
“We continued to focus on efficiencies across our operations while significantly increasing investments behind our brands, with advertising and marketing spends up by 46%,” said Nestle India, Chairman and Managing Director, Manish Tiwary.
The confectionery business recorded another quarter of double-digit, volume-led growth, supported by market share gains in KitKat and sustained momentum in Munch and Milkybar.
Powdered and Liquid Beverages also delivered strong volume-led growth, driven by household reach, affordability and premiumisation across the coffee portfolio.
The Prepared Dishes and Cooking Aids business recorded strong growth, with Maggi noodles expanding through deeper rural penetration. Maggi Masala-ae-Magic continued efforts to increase household penetration by promoting its use in regional dishes.
Milk Products and Nutrition registered broad-based growth, supported by brand-building investments and portfolio optimisation.
Rural markets and digital tools support sales
General trade delivered double-digit growth across town classes, with rural markets providing strong momentum. The company said expansion of rural distribution touchpoints had improved direct reach and strengthened market coverage.
E-commerce continued to grow, supported by shopper engagement, a broad product portfolio and channel-specific execution. Organised Trade also recorded strong growth across key categories, aided by in-store execution, consumer activations, shelf visibility and expansion of the store network.
Nestle India is also increasing the use of digital tools to improve sales execution. Building on its NestMitra platform for retailers, the company is equipping sales teams with data-enabled tools, including a sales officer app that provides near real-time market insights to help identify opportunities and improve customer engagement.
Nestle Professional, which serves the out-of-home market, continued to deliver double-digit, volume-led growth through premium products, customer-focused solutions and innovations.
In beverages, the company expanded its NESCAFE Duo Gusto hot-and-cold machine offering and introduced more cold beverage solutions, including Nestle Shikanji. In food, recipe-led applications supported the use of Maggi Coconut Milk Powder in coastal cuisines and increased adoption of Milkmaid in cafes and bakeries.
Exports expand across markets
Exports maintained double-digit growth, supported by portfolio expansion and market development.
During the quarter, Maggi Masala-e-Magic was launched in Canada, while NESCAFE Sunrise expanded into five West African markets. Nestle India also introduced a new instant coffee variant in the Middle East.
These launches indicate the company’s continued efforts to expand the international reach of its brands and diversify growth beyond the domestic market.
Commodity costs remain a key monitorable
The company expects coffee and wheat prices to remain range-bound. Sugar and edible oil prices have stabilised at elevated levels, while cocoa remains volatile because of weather-related crop concerns in key producing regions.
Milk prices have strengthened seasonally but are expected to ease as flush-season supplies arrive.
The commodity outlook will remain important for margins, particularly as Nestle India balances higher brand-building expenditure with cost efficiencies. Cocoa volatility and elevated sugar and edible oil prices could continue to put pressure on input costs, while any easing in milk prices could provide some relief.
The combination of double-digit income growth, strong performance across product groups and a higher marketing outlay highlights Nestle India’s focus on expanding volumes and strengthening brands while managing input-cost pressures.