Nestlé India profit rises 35.85% as YoY margin expands
Revenue growth outpaced expenses YoY, but sequential margin narrowed as costs grew 6.88% against 6.43% revenue growth.
Filed 15 Oct 2026, 12:24 IST · Nestle India Ltd (NESTLEIND)
Key takeaways
- Consolidated net profit rose 35.85% YoY to Rs 1,009.61 cr as revenue grew 20.28%.
- Operating margin expanded 1.89 percentage points YoY to 23.80%, but narrowed 0.32 percentage points sequentially as expenses grew faster than revenue.
- Other income contributed -0.04% of pre-tax profit, while the 26.96% tax rate was broadly stable, leaving reported profit largely operationally driven.
Price around the results
Revenue growth carried into profit
Consolidated revenue grew 20.28% YoY to Rs 6,788.34 cr, while expenses rose 17.38%, allowing operating profit to increase 30.63% to Rs 1,615.48 cr. Net profit growth was stronger at 35.85%, helped by 13.23% lower interest costs and a tax rate that was 0.07 percentage points lower than a year earlier. Sequentially, revenue and net profit increased 6.43% and 5.31%, respectively.
Sequential cost pressure trims margin
The YoY margin expansion reflects revenue growing faster than expenses, lifting operating margin by 1.89 percentage points to 23.80%. The sequential picture was weaker: expenses grew 6.88% against 6.43% revenue growth, narrowing margin by 0.32 percentage points. Other income was negative and represented -0.04% of pre-tax profit, so it did not materially support earnings.
Margin remains above peers but below the recent peak
Nestlé India's 23.80% operating margin was 0.21 percentage points above the 23.59% median for the four Fast Moving Consumer Goods peers that had reported. The margin has declined for two consecutive quarters, from 26.25% in Q4FY26 to 24.12% in Q1FY27 and 23.80% now. That leaves the current margin above the 21.91% recorded in Q2FY26, despite the recent sequential easing.
Current market reaction is not yet recorded
There is no recorded post-results stock move yet. Across eight prior result reactions, the stock rose five times and fell three times, with a median absolute move of 3.46%, making that the relevant historical reference for the eventual response.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹6,788 cr | ₹6,378 cr | +6.43% | +20.28% |
| Other income | ₹-1 cr | ₹-0 cr | -195.00% | +92.97% |
| Expenses | ₹5,173 cr | ₹4,840 cr | +6.88% | +17.38% |
| Operating profit | ₹1,615 cr | ₹1,538 cr | +5.03% | +30.63% |
| Operating margin (%) | 23.80% | 24.12% | — | — |
| Interest | ₹40 cr | ₹42 cr | -4.53% | -13.23% |
| Depreciation | ₹192 cr | ₹188 cr | +2.46% | +17.80% |
| Profit before tax | ₹1,382 cr | ₹1,308 cr | +5.68% | +35.71% |
| Tax | ₹373 cr | ₹349 cr | +6.68% | +35.33% |
| Net profit | ₹1,010 cr | ₹959 cr | +5.31% | +35.85% |
| EPS (₹) | ₹5.24 | ₹4.97 | +5.43% | +35.75% |
Operating margin of 23.80% compares with a Fast Moving Consumer Goods sector median of 23.59% across 4 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 23.80% after two consecutive quarterly declines.
- Whether expenses continue to grow more slowly than revenue, as they did YoY with growth of 17.38% versus 20.28%.
- Whether the tax rate remains near 26.96% without the one-quarter distortion seen at 13.06% in Q3FY26.