Nestle India’s Q4 margin expands 5.04 points as revenue growth beats costs
Consolidated revenue grew +22.60% YoY, while the higher QoQ tax rate limited net-profit growth to +11.27% despite a +31.43% rise in pre-tax profit.
Filed 21 Apr 2026, 14:15 IST · Nestle India Ltd (NESTLEIND)
Key takeaways
- Nestle India’s consolidated Q4 operating margin expanded 5.04 percentage points QoQ to 26.25% as revenue grew +19.07% while expenses rose +11.45%.
- Consolidated net profit grew +27.18% YoY to Rs 1,110.90 cr, but EPS fell -36.42% to Rs 5.76.
- The stock rose +7.27% on results day, far above its 1.20% median absolute move after the previous eight results.
Price around the results
Revenue growth translated into a larger operating profit
Nestle India’s consolidated revenue rose +22.60% YoY to Rs 6,747.78 cr, taking operating profit up +27.55% to Rs 1,771.60 cr. Expenses grew +20.93%, slower than revenue, which lifted operating margin by 1.01 percentage points YoY to 26.25%. Net profit rose +27.18% YoY to Rs 1,110.90 cr, although EPS declined -36.42% to Rs 5.76.
QoQ margin rebound came before the tax drag
QoQ revenue increased +19.07%, outpacing the +11.45% rise in expenses and expanding operating margin by 5.04 percentage points from Q3FY26. Pre-tax profit grew +31.43% QoQ, but the tax rate rose 13.34 percentage points to 26.40%, limiting net-profit growth to +11.27%. Other income was negative and represented -1.39% of pre-tax profit, so reported profit did not receive a material boost from non-operating income.
Margin recovered from Q3 and remains above the FMCG peer median
The 26.25% operating margin followed 21.59% in Q1FY26, 21.91% in Q2FY26 and 21.21% in Q3FY26, marking a sharp Q4 recovery rather than a third consecutive quarterly decline. It was 9.50 percentage points above the 16.75% median among 26 Fast Moving Consumer Goods peers that had reported the quarter.
Results-day reaction was unusually large for Nestle India
The stock gained +7.27% on the results date and was up +11.94% after five sessions, with trading volume at 7.01 times the reference level. That reaction was much larger than the stock’s 1.20% median absolute move after its previous eight results, although its history was evenly split between four rises and four falls.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹6,748 cr | ₹5,667 cr | +19.07% | +22.60% |
| Other income | ₹-21 cr | ₹149 cr | — | -425.88% |
| Expenses | ₹4,976 cr | ₹4,465 cr | +11.45% | +20.93% |
| Operating profit | ₹1,772 cr | ₹1,202 cr | +47.38% | +27.55% |
| Operating margin (%) | 26.25% | 21.21% | — | — |
| Interest | ₹37 cr | ₹28 cr | +30.12% | -1.97% |
| Depreciation | ₹205 cr | ₹174 cr | +17.27% | +31.67% |
| Profit before tax | ₹1,509 cr | ₹1,148 cr | +31.43% | +26.61% |
| Tax | ₹398 cr | ₹150 cr | +165.64% | +25.04% |
| Net profit | ₹1,111 cr | ₹998 cr | +11.27% | +27.18% |
| EPS (₹) | ₹5.76 | ₹5.17 | +11.41% | -36.42% |
Operating margin of 26.25% compares with a Fast Moving Consumer Goods sector median of 16.75% across 26 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +7.27% | +6.40% |
| Next session | +8.50% | — |
| 5 sessions | +11.94% | +13.46% |
| 15 sessions | +14.19% | — |
| 30 sessions | +7.50% | — |
Volume on the results session was 7.01× its 20-day average.
What to watch
- Whether consolidated operating margin holds above 26.25% after the Q4 rebound.
- Whether expenses continue to grow slower than revenue, following +11.45% expense growth versus +19.07% revenue growth QoQ.
- Whether the tax rate remains near 26.40% after rising 13.34 percentage points QoQ.