Nestlé India reported 20.5% year-on-year growth in total sales to ₹6,782.17 crore in Q2 FY27, while standalone net profit jumped 36.3% to ₹1,026.77 crore. Strong double-digit volume growth, lower material costs relative to sales and improved operating efficiency supported earnings. EBITDA rose 31%, even as advertising and marketing expenditure increased 46%.
The Nestle India Q2 FY27 Results, announced on 15 October 2026, also highlighted strong rural demand, quick-commerce growth and momentum across major product categories. However, rising working-capital requirements and commodity-price volatility remain important considerations.
This analysis covers the company's financial performance, business growth drivers, margins, cash flow and key factors investors should monitor.
Table of Contents
- Nestle India Q2 FY27 Results: Key Highlights
- What Drove Nestle India's 20.5% Sales Growth?
- EBITDA and Profit Margin Analysis
- Nestle India Q2 FY27 Expense Analysis
- How Did Nestle India's Major Businesses Perform?
- Rural Demand and Quick-Commerce Growth
- Nestle India Q2 FY27 vs Q1 FY27
- Nestle India H1 FY27 Results and Cash Flow
- Commodity Prices and Business Outlook
- Key Risks for Nestle India After Q2 FY27 Results
- What Investors Should Track Next
- Conclusion
Nestlé India reported higher sales, EBITDA, and earnings for the quarter ended 30 September 2026. Profit grew faster than revenue, reflecting an improvement in operating profitability.
Nestle India Q2 FY27 Financial Performance
|
Particulars
|
Q2 FY27
|
|
Total sales
|
₹6,782.17 cr
|
|
Revenue from operations
|
₹6,788.34 cr
|
|
Domestic sales
|
₹6,514.74 cr
|
|
Export sales
|
₹267.43 cr
|
|
EBITDA
|
₹1,615.48 cr
|
|
EBITDA margin
|
23.8%
|
|
Standalone PBT
|
₹1,399.36 cr
|
|
Standalone PAT
|
₹1,026.77 cr
|
|
Standalone EPS
|
₹5.32
|
|
Consolidated PAT
|
₹1,009.61 cr
|
|
Consolidated EPS
|
₹5.24
|
For a year-on-year comparison, the table below presents Nestlé India's financial performance in Q2 FY26, providing a base to assess the company's revenue, profitability, and margin growth in Q2 FY27.
Nestle India Q2 FY26 Financial Performance
|
Particulars
|
Q2 FY26
|
|
Total sales
|
₹5,630.23 cr
|
|
Revenue from operations
|
₹5,643.61 cr
|
|
Domestic sales
|
₹5,411.02 cr
|
|
Export sales
|
₹219.21 cr
|
|
EBITDA
|
₹1,232.74 cr
|
|
EBITDA margin
|
~21.9%
|
|
Standalone PBT
|
₹1,028.52 cr
|
|
Standalone PAT
|
₹753.20 cr
|
|
Standalone EPS
|
₹3.90
|
|
Consolidated PAT
|
₹743.17 cr
|
|
Consolidated EPS
|
₹3.86
|
Nestle India Q2 FY27 YoY Growth
The following table summarises how the company's key financial metrics changed compared with Q2 FY26.
|
Particulars
|
YoY Change
|
|
Total sales
|
+20.5%
|
|
Revenue from operations
|
+20.3%
|
|
Domestic sales
|
+20.4%
|
|
Export sales
|
+22.0%
|
|
EBITDA
|
+31.0%
|
|
EBITDA margin
|
~+190 bps
|
|
Standalone PBT
|
+36.1%
|
|
Standalone PAT
|
+36.3%
|
|
Standalone EPS
|
+36.4%
|
|
Consolidated PAT
|
+35.9%
|
|
Consolidated EPS
|
+35.8%
|
Source: Nestlé India Q2 FY27 results. Percentage changes calculated from reported figures.
The key takeaway is that EBITDA and profit grew considerably faster than sales. This was supported by strong volumes and a lower material-cost ratio, even as the company increased spending on advertising and marketing.
The company's press release highlights standalone PAT of ₹1,026.77 crore. Consolidated PAT was ₹1,009.61 crore, primarily reflecting a ₹17.16 crore share of loss from an associate, net of tax.
Similarly, total sales of ₹6,782.17 crore exclude ₹6.17 crore of other operating revenue, which is included in revenue from operations of ₹6,788.34 crore.
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Want to evaluate how the market values Nestlé India's earnings growth and operating performance? Review the Nestle India share price, historical charts, and key valuation indicators.
Nestlé India's Q2 FY27 sales growth was supported by robust double-digit volume growth across product groups, according to management.
This is important because volume-led growth indicates that higher sales were supported by increased product consumption rather than depending entirely on price increases.
However, the company has not disclosed the exact volume-growth percentage or a detailed split between volume and pricing contributions.
Domestic sales remained the primary growth driver
Domestic sales increased 20.4% YoY to ₹6,514.74 crore, accounting for approximately 96% of total sales.
The performance was supported by strong general-trade demand, rural distribution expansion and growth across major food and beverage categories.
Management reported robust double-digit growth across town classes in general trade, with particularly strong rural momentum.
Exports increased 22%
Export sales rose to ₹267.43 crore, compared with ₹219.21 crore in Q2 FY26.
Nestlé India continued expanding its international portfolio through several initiatives:
-
Canada: Launch of MAGGI Masala-e-Magic.
-
West Africa: Expansion of NESCAFÉ Sunrise into five markets.
-
Middle East: Introduction of a new instant coffee variant.
Although exports account for only about 4% of total sales, geographic and portfolio expansion provides an additional source of business growth.
Source: Nestlé India Q2 FY27 press release.
Nestlé India's EBITDA increased 31% YoY to ₹1,615.48 crore, outpacing total sales growth of 20.5%.
The company reported an EBITDA margin of 23.8%, compared with approximately 21.9% in Q2 FY26, representing an improvement of around 190 basis points.
The main factors supporting profitability were lower material costs relative to sales, higher volumes and operating efficiencies.
Lower material costs supported margin expansion
The combined cost of materials consumed, stock-in-trade purchases and inventory changes declined as a percentage of sales.
| Period |
Material Cost as % of Sales |
| Q2 FY26 |
45.5% |
| Q2 FY27 |
43.1% |
| YoY change |
-240 bps |
The 240-basis-point decline in the material-cost ratio helped Nestlé India improve its operating margin despite higher advertising and other operating expenses.
Net profit increased 36.3%
Standalone profit before tax increased 36.1% to ₹1,399.36 crore, while standalone PAT rose to ₹1,026.77 crore, compared with ₹753.20 crore a year earlier.
Standalone EPS also increased from ₹3.90 to ₹5.32.
The quarter included an exceptional charge of ₹3.69 crore relating to restructuring costs and provisions for employee severance compensation. The charge was small relative to quarterly earnings and was not a major driver of profit growth.
For H1 FY27, the corresponding exceptional charge stood at ₹9.92 crore.
Overall, the improvement in profitability reflected both higher sales and better cost absorption.
Nestlé India's total expenses increased 17% YoY to ₹5,405.55 crore, compared with sales growth of 20.5%.
This difference helped support operating leverage, although individual expense categories showed varying trends.
Q2 FY27 Expense Breakdown
|
Expense
|
Q2 FY27
|
|
Material costs including inventory changes
|
₹2,924.36 cr
|
|
Employee benefits
|
₹568.73 cr
|
|
Finance costs
|
₹40.27 cr
|
|
Depreciation and amortisation
|
₹192.42 cr
|
|
Other expenses
|
₹1,679.77 cr
|
|
Total expenses
|
₹5,405.55 cr
|
How Expenses Changed Compared with Q2 FY26
While material and employee costs increased more slowly than sales, other expenses recorded faster growth.
|
Expense
|
YoY Change
|
|
Material costs including inventory changes
|
+14.0%
|
|
Employee benefits
|
+5.8%
|
|
Finance costs
|
-13.2%
|
|
Depreciation and amortisation
|
+17.8%
|
|
Other expenses
|
+28.4%
|
|
Total expenses
|
+17.0%
|
Source: Nestlé India standalone financial results. YoY calculations based on Q2 FY26 figures.
Advertising and marketing expenditure increased 46%
Nestlé India increased advertising and marketing spending by 46% YoY, reflecting continued investment in its brands and product portfolio.
This spending is relevant for two reasons.
First, the company continued investing in brand visibility and consumer engagement while volumes were already growing strongly.
Second, EBITDA still increased 31% despite higher marketing expenditure, indicating that volume growth and material-cost improvements were sufficient to support YoY margin expansion.
Other expenses increased 28.4%, although the quarterly financial statement does not separately disclose the absolute advertising and marketing expense.
Investors should monitor whether these investments continue to support volume growth, household penetration and market-share gains.
Nestlé India reported growth across its major food and beverage businesses during Q2 FY27. However, the company reports a single operating segment, Food, under Ind AS 108 and does not disclose separate quarterly revenue or profit for individual product groups.
The following analysis is therefore based on management's category-level commentary rather than estimated segment financials.
Confectionery: KITKAT leads volume growth
Confectionery delivered another quarter of double-digit volume-led growth.
KITKAT continued gaining market share, while MUNCH and MILKYBAR maintained momentum.
The company also expanded its premium portfolio through KITKAT Delights Choco Lava and launched a Formula 1-themed chocolate gift pack exclusively through e-commerce. A MUNCH Onam Pack supported festive consumption.
These developments indicate a focus on strengthening established brands while introducing premium and occasion-specific products.
Beverages: NESCAFÉ benefits from wider reach and premiumisation
Powdered and liquid beverages recorded strong volume-led growth.
The business benefited from improved household reach, affordability and expansion of premium coffee offerings.
Key developments included:
-
NESCAFÉ Classic: Continued focus on attracting new households through brand communication.
-
NESCAFÉ Sunrise: Relaunched with an improved recipe and aroma.
-
NESCAFÉ Gold: Registered strong double-digit growth in the premium portfolio.
-
NESCAFÉ Ready-to-Drink: Continued scaling in the cold coffee category.
-
Nespresso: Maintained growth across e-commerce and retail channels.
The combination of mass-market penetration and premiumisation allows Nestlé India to address different consumer preferences within the beverage category.
Prepared Dishes: MAGGI expands rural penetration
Prepared dishes and cooking aids delivered strong growth, supported by MAGGI's continued expansion in rural markets.
The company focused on product variety and household usage through MAGGI Double Masala, its spicy range, MAGGI veg atta with the taste of MAGGI masala and MAGGI Masala-e-Magic.
For investors, rural penetration is an important indicator of the brand's ability to expand beyond its established consumer base.
Milk Products and Nutrition: Sequential improvement continues
The milk products and nutrition business recorded broad-based growth.
Management highlighted improving sequential performance in nutrition, with toddler-specific products delivering strong growth and market-share gains.
Continued brand investment and portfolio optimisation supported the category.
Pet Food: Double-digit growth
Nestlé India's pet food business reported strong double-digit growth, supported by digital consumer engagement and focused distribution.
The company expanded its cat-food portfolio through FELIX Gravy Lover, PRO PLAN Cat and FRISKIES wet cat.
Although pet food is a growth opportunity, its individual revenue and profit contribution is not disclosed.
Nestlé Professional: Growth in out-of-home consumption
Nestlé Professional delivered robust double-digit volume-led growth.
The business focused on food-service customers through product innovation and premium offerings, including NESCAFÉ Duo Gusto, Nestlé Shikanji, MAGGI Coconut Milk Powder and wider MILKMAID usage in cafés and bakeries.
Beyond product performance, Nestlé India's distribution channels contributed to its sales momentum.
General trade and rural markets
General trade recorded robust double-digit growth across town classes, with rural markets showing particularly strong momentum.
Nestlé India continued expanding rural distribution touchpoints to improve product availability and direct market reach.
The company also highlighted digital tools for its sales teams, including a sales officer app providing near real-time market insights to support execution and retailer engagement.
E-commerce and quick commerce
E-commerce delivered strong growth, led by quick commerce.
Management attributed this performance to improved availability, channel-specific product assortments, pack formats, digital-shelf execution and targeted consumer engagement.
Quick commerce is becoming an additional distribution opportunity for Nestlé India, although the company has not disclosed its exact revenue contribution or growth percentage.
Organised trade
Organised trade also delivered strong growth across key categories, supported by better in-store execution, consumer promotions, improved shelf visibility and network expansion.
Taken together, these developments show that growth was supported by both traditional retail distribution and digital channels.
While YoY comparisons show the scale of Nestlé India's earnings growth, quarter-on-quarter performance helps assess whether business momentum continued from Q1 FY27.
The company recorded higher domestic sales, EBITDA and profit sequentially, although exports declined.
Nestle India Q2 FY27 Quarter-on-Quarter Performance
|
Particulars
|
Q2 FY27 / Q1 FY27
|
|
Total sales
|
₹6,782.17 cr / ₹6,363.27 cr
|
|
Revenue from operations
|
₹6,788.34 cr / ₹6,378.18 cr
|
|
Domestic sales
|
₹6,514.74 cr / ₹6,073.05 cr
|
|
Export sales
|
₹267.43 cr / ₹290.22 cr
|
|
EBITDA
|
₹1,615.48 cr / ₹1,538.13 cr
|
|
EBITDA margin
|
23.8% / ~24.2%
|
|
Standalone PAT
|
₹1,026.77 cr / ₹975.12 cr
|
|
Consolidated PAT
|
₹1,009.61 cr / ₹958.68 cr
|
Source: Nestlé India Q2 FY27 financial results.
Nestle India Q2 FY27: QoQ Growth
The following table shows the percentage change in key financial metrics compared with Q1 FY27.
|
Particulars
|
QoQ Change
|
|
Total sales
|
+6.6%
|
|
Revenue from operations
|
+6.4%
|
|
Domestic sales
|
+7.3%
|
|
Export sales
|
-7.9%
|
|
EBITDA
|
+5.0%
|
|
EBITDA margin
|
~-35 bps
|
|
Standalone PAT
|
+5.3%
|
|
Consolidated PAT
|
+5.3%
|
Source: Nestlé India financial results. QoQ changes calculated against Q1 FY27.
Domestic sales increased 7.3% sequentially, while export sales declined 7.9%.
EBITDA rose 5%, but its margin moderated from approximately 24.2% in Q1 FY27 to 23.8% in Q2 FY27, a decline of roughly 35 basis points.
This indicates that Nestlé India maintained sequential earnings growth, although operating margins softened slightly compared with the previous quarter.
Want to understand how Nestlé India's performance evolved between Q1 and Q2 FY27? Read the Nestle India Q1 FY27 Results Analysis to compare earlier sales growth, profitability, volume trends and operating performance.
Nestlé India's first-half performance provides a broader view of growth and cash generation beyond the latest quarter.
For H1 FY27, total sales increased 22.8% YoY, while standalone PAT grew 41.7%.
Nestle India H1 FY27 Financial Performance
|
Particulars
|
H1 FY27 / H1 FY26
|
|
Domestic sales
|
₹12,587.79 cr / ₹10,266.80 cr
|
|
Export sales
|
₹557.65 cr / ₹433.28 cr
|
|
Total sales
|
₹13,145.44 cr / ₹10,700.08 cr
|
|
Revenue from operations
|
₹13,166.52 cr / ₹10,738.87 cr
|
|
EBITDA
|
₹3,153.61 cr / ₹2,332.51 cr
|
|
Standalone PAT
|
₹2,001.89 cr / ₹1,412.75 cr
|
|
Consolidated PAT
|
₹1,968.29 cr / ₹1,390.01 cr
|
Source: Nestlé India H1 FY27 financial results.
Nestle India H1 FY27: Year-on-Year Growth
The following table shows the percentage change in key financial metrics compared with H1 FY26.
|
Particulars
|
YoY Change
|
|
Domestic sales
|
+22.6%
|
|
Export sales
|
+28.7%
|
|
Total sales
|
+22.8%
|
|
Revenue from operations
|
+22.6%
|
|
EBITDA
|
+35.2%
|
|
Standalone PAT
|
+41.7%
|
|
Consolidated PAT
|
+41.6%
|
The first-half results show profit growth outpaced sales growth, with standalone PAT up 41.7% versus total sales growth of 22.8%.
Operating cash flow declined despite higher profit
Nestlé India's operating cash flow declined 2.6% YoY in H1 FY27, even as standalone PAT increased 41.7%.
| Particulars |
Amount |
| H1 FY27 operating cash flow |
₹2,258.43 cr |
| H1 FY26 operating cash flow |
₹2,318.99 cr |
| YoY change |
-2.6% |
Source: Nestlé India H1 FY27 cash flow statement.
The decline was mainly due to working-capital movements:
-
Inventories: Absorbed ₹249.40 crore of cash.
-
Trade receivables: Absorbed ₹66.94 crore.
-
Other financial assets and assets: Absorbed ₹80.19 crore.
-
Trade payables: Contributed ₹80.26 crore of cash.
H1 FY26 had benefited from a reduction in inventories, making the year-on-year comparison less favourable.
Although operating cash flow remained higher than reported profit, cash generation did not keep pace with earnings growth. Investors should monitor inventory levels, receivables and cash conversion in the coming quarters.
Capital expenditure increased 21%
Cash spent on property, plant and equipment, including capital work-in-progress, increased to ₹468.68 crore in H1 FY27, compared with ₹387.81 crore in H1 FY26.
Meanwhile, cash and current investments under the company's cash-flow presentation stood at approximately ₹1,775.35 crore at the end of September 2026, against ₹1,320.57 crore at the beginning of FY27.
These figures indicate continued investment in manufacturing assets alongside a higher closing cash and current-investment position.
Commodity prices remain an important factor in Nestlé India's profitability, particularly because the company operates across chocolate, coffee, dairy and prepared-food categories.
Management's outlook for key commodities was mixed.
|
Commodity
|
Management Outlook
|
|
Coffee
|
Expected to remain range-bound
|
|
Wheat
|
Expected to remain range-bound
|
|
Sugar
|
Stabilised at elevated levels
|
|
Edible oils
|
Stabilised at elevated levels
|
|
Cocoa
|
Volatile due to weather-related crop concerns
|
|
Milk
|
Seasonally stronger, expected to ease with flush supplies
|
The main question for future margins is whether Nestlé India can maintain the improvement in its material-cost ratio.
Cocoa volatility could affect confectionery costs, while coffee prices remain relevant to beverages. Milk, wheat, sugar and edible oils influence several other core products.
Renewable energy investment
Nestlé India also disclosed an agreement dated 27 August 2026 to acquire a 26% equity stake in Radiance KA Sunshine Seven Private Limited through subscription to 76,12,500 equity shares.
The company is developing a captive renewable-energy power plant to supply electricity to one of Nestlé India's manufacturing facilities.
Although the investment is not a major current earnings driver, it is relevant to long-term energy sourcing and manufacturing operations.
Despite strong sales and profit growth, Nestlé India faces several risks that could affect its margins, operating performance and cash generation in the coming quarters.
1. Commodity Price Inflation
Cocoa prices remain volatile, while sugar and edible-oil prices have stabilised at elevated levels. Any further increase in raw-material costs could put pressure on profitability.
2. Milk Price Pressure
Milk prices strengthened seasonally during the quarter. Although management expects prices to ease with increased supplies, continued cost pressure could affect margins in dairy and nutrition products.
3. Higher Advertising and Marketing Costs
Advertising and marketing expenditure increased 46% YoY in Q2 FY27. Sustained spending will need to support volume growth, household penetration and market-share gains to justify the higher investment.
4. Working Capital and Cash Flow
Despite strong profit growth, H1 FY27 operating cash flow declined approximately 2.6% YoY. Higher inventory and receivables absorbed cash, making working-capital management an important concern.
5. EBITDA Margin Sustainability
Nestlé India's EBITDA margin improved to 23.8% from approximately 21.9% YoY, but declined slightly from around 24.2% in Q1 FY27. Rising commodity costs or operating expenses could affect future margins.
6. Associate Losses
Nestlé India recorded a ₹17.16 crore share of loss from an associate in Q2 FY27, compared with ₹10.03 crore a year earlier. Continued losses could weigh on consolidated profitability.
7. Competitive Pressure
Nestlé India operates in competitive FMCG categories, including confectionery, beverages, prepared foods and nutrition. Maintaining growth will require continued product innovation, competitive pricing, distribution expansion and brand investment.
Following the Nestle India Q2 FY27 Results, investors should focus on the sustainability of volume growth, operating margins and cash generation in the coming quarters.
Key indicators to monitor include:
-
Volume Growth: Whether Nestlé India can sustain double-digit volume growth across its major product categories.
-
Domestic Sales: Growth in rural demand, household consumption and general trade distribution.
-
EBITDA Margin: Whether the company can maintain its Q2 FY27 EBITDA margin of 23.8% despite higher operating costs.
-
Raw Material Costs: Changes in the material-cost ratio of 43.1%, particularly due to fluctuations in cocoa, coffee and milk prices.
-
Advertising Expenditure: Whether the 46% YoY increase in marketing spending translates into higher sales volumes and market-share gains.
-
Confectionery and Beverages: KITKAT's market-share performance, coffee demand and growth in premium products.
-
Quick Commerce: Expansion of digital distribution, product availability and sales contribution from quick-commerce platforms.
-
Operating Cash Flow: Improvement in cash generation through better inventory and receivables management.
-
Capital Expenditure: Progress in manufacturing investments and their contribution to production capacity and operational efficiency.
-
Associate Performance: Whether losses from associate investments continue to affect consolidated profitability.
Among these, volume growth, raw-material costs and operating cash flow will be particularly important in assessing whether Nestlé India can sustain earnings growth and convert higher profits into cash.
Nestlé India's Q2 FY27 performance was supported by strong volume-led sales growth and improving YoY profitability. Total sales increased 20.5% to ₹6,782.17 crore, EBITDA rose 31% to ₹1,615.48 crore, and standalone PAT grew 36.3% to ₹1,026.77 crore.
Growth was broad-based across product groups and supported by rural distribution, e-commerce, quick commerce and premiumisation. Lower material costs as a percentage of sales helped protect margins despite a 46% increase in advertising and marketing expenditure.
However, the slight sequential decline in EBITDA margin and weaker H1 operating cash-flow growth deserve attention.
For investors, the next results will be important in assessing whether Nestlé India can maintain double-digit volume growth, manage commodity-price pressure and improve working-capital conversion.
FAQs on Nestle India Q2 FY27 Results
1. What were Nestle India's Q2 FY27 results?
Nestlé India reported total sales of ₹6,782.17 crore, up 20.5% YoY, and standalone PAT of ₹1,026.77 crore, up 36.3%. EBITDA increased 31% to ₹1,615.48 crore, with a margin of 23.8%.
2. What was Nestle India's revenue in Q2 FY27?
Nestlé India's revenue from operations stood at ₹6,788.34 crore, up approximately 20.3% from ₹5,643.61 crore in Q2 FY26. Total product sales were ₹6,782.17 crore, up 20.5%.
3. Why did Nestle India's profit increase 36.3% in Q2 FY27?
Profit growth was supported by robust double-digit volume growth, operating efficiencies and a decline in the material-cost ratio from 45.5% to 43.1%. These factors helped EBITDA grow faster than sales despite higher advertising expenditure.
4. What was Nestle India's EBITDA margin in Q2 FY27?
Nestlé India's EBITDA margin was 23.8% in Q2 FY27, compared with approximately 21.9% in Q2 FY26. The margin improved by around 190 basis points YoY but declined slightly from approximately 24.2% in Q1 FY27.
5. What are the key risks for Nestle India after Q2 FY27 results?
The key risks include commodity-price volatility, higher advertising expenditure, working-capital requirements, margin sustainability and competitive pressure. Investors should particularly monitor volume growth, raw-material costs and operating cash flow.