BusinessK Puspa16 Oct 2026
Oct 16: Nestlé India reported consolidated net sales of ₹6,782.2 crore for the second quarter of FY27, registering year-on-year growth of 20.5%. Total revenue stood at ₹6,788.3 crore, up 20.3% compared with the corresponding quarter of the previous financial year. Reported profit after tax increased 35.9% year-on-year to ₹1,009.6 crore, while adjusted PAT rose 36.8% to ₹1,030.5 crore.
Operating profit grew 31% year-on-year to ₹1,615.5 crore, compared with ₹1,232.7 crore in Q2 FY26. Profit before tax increased 36.4% to ₹1,403.1 crore. Adjusted diluted earnings per share stood at ₹5.3, reflecting year-on-year growth of 36.3%.
The company recorded a gross profit margin of 56.9%, compared with 54.6% in the year-ago quarter. Operating profit margin improved to 23.8% from 21.8%, while net profit margin increased to 14.9% from 13.2%.
Confectionery: The portfolio maintained strong, volume-led growth, supported by market-share gains, deeper distribution and premiumisation. KITKAT continued to lead performance, while MUNCH and MILKYBAR sustained healthy momentum. Premium offerings and channel-specific gifting formats strengthened the portfolio across organised retail and e-commerce.
Powdered and Liquid Beverages: The portfolio delivered broad-based, volume-led growth. NESCAFÉ CLASSIC supported household penetration, while the relaunch of NESCAFÉ SUNRISE with an improved product proposition contributed to momentum. The premium portfolio, led by NESCAFÉ GOLD, maintained double-digit growth, and ready-to-drink coffee continued to scale rapidly.
Prepared Dishes and Cooking Aids: The portfolio recorded strong growth, supported by MAGGI noodles, deeper rural penetration, focused consumer engagement and portfolio expansion. Newer offerings, including spicy variants, Double Masala and Veg Atta, supported consumer recruitment and strengthened the brand's presence across product and price segments.
Milk Products and Nutrition: The business delivered broad-based growth, supported by brand investments and portfolio optimisation. Nutrition recorded sequential growth, while toddler-focused products grew strongly alongside market-share gains.
Pet Food: The business delivered strong double-digit growth, driven by portfolio expansion, improved route-to-market execution and sharper digital consumer engagement. Growth remained broad-based across mainstream and premium cat food offerings.
E-commerce and Quick Commerce: Both channels remained important growth drivers, supported by improved availability, channel-specific packs, targeted digital investments and participation during key festive and consumption occasions. Quick commerce continued to improve product discovery and accessibility, particularly in urban markets.
Organised Trade: The channel recorded strong growth, supported by improved shelf visibility, consumer activations, sharper in-store execution and expansion of the store network.
Out-of-Home: The business maintained double-digit, volume-led growth, supported by new customer acquisition and premium beverage solutions. NESCAFÉ Duo Gusto, Nestlé Shikanji, MAGGI Coconut Milk Powder and MILKMAID contributed to offerings for cafés and bakeries.
Exports: Exports grew 22% year-on-year, supported by portfolio expansion and entry into new markets. Key initiatives included exports of MAGGI Masala-e-Magic to Canada, the rollout of NESCAFÉ SUNRISE across West African markets and the launch of a new instant-coffee offering in the Middle East.
General Trade and Rural Markets: General trade delivered robust double-digit growth across town classes, with rural markets maintaining strong momentum. Growth initiatives included expanding rural distribution touchpoints, improving product availability and using digital tools for retailers through NestMitra and for the sales force.
Commodity trends remained mixed. Coffee and wheat prices were expected to stay range-bound, while sugar and edible oil prices remained elevated despite stabilising. Cocoa prices continued to face weather-related volatility, while milk prices could ease with the onset of the flush season.
Productivity gains, operating leverage and premiumisation are expected to partly offset cost pressures. However, elevated brand investments may restrict near-term margin expansion.
During Q2 FY27, Nestlé India's consolidated net sales reached ₹6,782.2 crore, compared with ₹5,630.2 crore in Q2 FY26. Total revenue increased to ₹6,788.3 crore from ₹5,643.6 crore in the corresponding period of the previous year.
Operating profit rose to ₹1,615.5 crore from ₹1,232.7 crore, while profit before tax increased to ₹1,403.1 crore from ₹1,028.5 crore. Adjusted PAT stood at ₹1,030.5 crore, compared with ₹753.2 crore in Q2 FY26. Reported PAT increased to ₹1,009.6 crore from ₹743.2 crore.
The company's gross profit margin improved by 236 basis points to 56.9%. Operating profit margin rose by 195 basis points to 23.8%, while net profit margin increased by 170 basis points to 14.9%. The tax rate stood at 26.6%, compared with 26.8% in the year-ago quarter.
Nestlé India's Q2 FY27 performance reflected growth across its product categories and distribution channels, supported by volume-led momentum, premiumisation, rural expansion and export growth. Profitability improved year-on-year, while the company continued to focus on productivity, operating leverage and brand investments amid a mixed commodity-cost environment.
