Nestlé India announced its financial results for the first quarter of FY 2025–26, highlighting a return to volume-led growth across most business segments. The company reported strong performances in its core product groups, with seven of its top twelve brands recording double-digit growth.
Suresh Narayanan, Chairman and Managing Director, said “We have seen healthy, balanced growth in three of our four key categories—Prepared Dishes and Cooking Aids, Powdered and Liquid Beverages, and Confectionery. These segments have shifted back to being driven by volume, a positive development after previous quarters impacted by pricing pressures. This progress is thanks to the dedication of our employees, the efforts of our sales and distribution teams, and the continued trust of our consumers and stakeholders.”
During the quarter, Nestlé India faced high input costs due to commodity inflation and increased operational expenses from recent expansions in manufacturing. Temporary borrowing to manage short-term cash flow also led to a rise in finance costs. However, certain commodities showed signs of easing, with edible oil and cocoa prices stabilizing and coffee costs trending lower. Milk prices showed a modest upward movement.
Powdered and Liquid Beverages remained one of Nestlé India’s strongest performing segments this quarter, recording solid double-digit growth. NESCAFÉ continued to expand its footprint in the market by strengthening its leadership in the coffee space. Growth came from both ends of the pricing spectrum, with affordable pack offerings gaining popularity, while premium lines like NESCAFÉ Gold and NESCAFÉ Roastery also expanded. The Ready-to-Drink range under NESCAFÉ contributed meaningfully to this category’s performance.
In Prepared Dishes and Cooking Aids, volume growth made a strong comeback. MAGGI noodles reported double-digit growth, reaffirming its market dominance and consumer appeal. Masala-Ae-Magic continued to perform steadily as well, helping the category return to positive growth after periods of pricing-driven sales. This shift back to volume indicates growing consumer confidence and improved product accessibility.
The Confectionery category recorded high double-digit growth, driven by increased demand and stronger market engagement. KITKAT led the charge, particularly in semi-urban and rural markets, where it continued gaining market share. MUNCH bounced back with renewed momentum, and MILKYBAR also posted encouraging results. Enhanced digital engagement and expanded distribution channels supported this performance, helping the brands reach wider audiences.
Milk Products and Nutrition delivered mixed outcomes this quarter. While certain sub-categories experienced growth, others had a more muted showing. Nonetheless, there were signs of recovery in key areas, suggesting improving consumer sentiment and potential for better performance in upcoming quarters. These early trends point to underlying strength in the category despite ongoing challenges.
The Breakfast Cereals segment stood out with high double-digit growth, supported largely by new product launches. The introduction of MUNCH CHOCO Fills proved successful, contributing significantly to category acceleration. This product innovation reflects the company’s ability to align with changing consumer preferences, especially in the fast-moving breakfast foods market.
Pet Food continued to show strong results, particularly in the cat segment. Purina Felix and Purina Friskies were top performers, reflecting both rising demand and successful product positioning. Nestlé India also expanded its market reach and infrastructure in several major cities, leading to broader availability. In line with its employee-focused culture, the company introduced a Pet Feeding Policy and a ‘pawternity leave’ initiative, offering two days of paid leave for employees welcoming new pets.
On the distribution front, e-commerce maintained steady momentum, accounting for 12.5% of domestic sales. Growth was driven by the rising popularity of quick commerce and the success of newly launched products. Out-of-Home consumption posted consistent double-digit gains, making it the fastest-growing segment in the Foods and Beverages portfolio.
Nestlé Professional hit a key milestone with 1,000 operational Retail One kiosks, including NESCAFÉ Corners, MAGGI Hotspots, and KITKAT Break Zones. Strong performance was also noted across both urban and semi-urban markets, highlighting expanding demand and broader reach. Over the last ten financial years, the company has reported a compound annual growth rate of 10.3%, a 150% increase in sales, and a 490% jump in net profit. Operating profit margins rose by 500 basis points, market capitalization grew nearly fourfold, and Total Shareholder Return reached a CAGR of 17%, reflecting the company’s long-term resilience and value creation.
As Mr Narayanan prepares to step down as Chairman and Managing Director, he extended his appreciation to Nestlé India’s team, partners, and consumers “Our achievements have been possible because of the integrity, commitment, and hard work of our employees. I am deeply grateful to our partners, distributors, retailers, and suppliers for their collaboration. And most of all, I thank our consumers for their trust. It has been an honour to lead this journey.”
