Nestle India Q1 net profit jumps 48% to Rs 959 crore; stock gains over 3%

Strong demand lifts bottom line

Nestle India on Wednesday reported a 48% year-on-year jump in consolidated net profit for the first quarter ended June 2026, coming in at Rs 959 crore. The company's revenue also saw a sharp uptick, driven by robust domestic consumption and a significant expansion in its export business.

Shares of the FMCG major gained over 3% in afternoon trade on the BSE following the earnings announcement, briefly touching a fresh 52-week high. Investors cheered the broad-based growth across categories, especially in staples and confectionery.

Exports emerge as a bright spot

The company reported a 35.6% surge in export revenues, a standout figure in a quarter where global supply chains remained under pressure. Maggi noodles, a flagship brand, found new shelf space in several international markets, partly benefiting from geopolitical disruptions that reshaped trade flows.

Industry analysts pointed out that Nestle India's ability to scale exports during a period of global uncertainty reflects the resilience of its supply chain and brand strength. The company did not provide a region-wise breakdown, but officials indicated that demand from the Middle East and Southeast Asia was particularly strong.

Advertising spend jumps over 40%

Nestle India's advertising and promotional expenses surged more than 40% year-on-year in Q1, as the company ramped up marketing efforts to defend market share and push new product variants. The higher spend came despite input cost pressures, signalling management's confidence in the demand trajectory.

The aggressive ad push covered both traditional media and digital platforms, with a focus on tier-2 and tier-3 cities. The company also increased in-store promotions for its dairy and beverages portfolio, which saw double-digit volume growth during the quarter.

Cost management remains a focus

While raw material inflation persisted, Nestle India managed to protect margins through a mix of pricing actions and operational efficiencies. The company's EBITDA margin improved sequentially, though it remained slightly below pre-pandemic levels.

Management indicated that commodity cost trends would be closely monitored in the coming quarters, with selective price hikes possible if inflation does not ease. The company has not made any broad-based price increases so far this fiscal year.

What lies ahead

Nestle India's Q1 performance has set a strong baseline for the rest of the financial year. The company will now look to sustain momentum by deepening rural distribution and expanding its premium product range. Investors will watch for commentary on input costs and rural demand trends in the next earnings call.