New Delhi: FMCG major Nestlé India on Thursday reported a 36 per cent year-on-year jump in standalone net profit to Rs 1,027 crore for the July-September quarter, beating analyst estimates across key parameters — but its shares fell sharply as investors booked profits.
The company's earnings exceeded ET Now poll estimates on profit, revenue, operating profit and margins, according to the channel's report.
The numbers
Standalone net profit rose 36.4 per cent to Rs 1,027 crore, against an ET Now poll estimate of Rs 1,008 crore. Standalone revenue grew 20.3 per cent year-on-year to Rs 6,788 crore, also ahead of the poll expectation of Rs 6,755 crore.
Operating profit (EBITDA) increased 31 per cent to Rs 1,614 crore, beating the estimated Rs 1,573 crore, while the operating margin expanded by 200 basis points to 23.8 per cent from 21.8 per cent a year ago. Earnings per share came in at Rs 5.32, up from Rs 3.90 in the year-ago quarter. Total sales grew 20.5 per cent to Rs 6,782.2 crore, with domestic sales growth at 20.4 per cent, The Hindu BusinessLine reported.
Manish Tiwary, chairman and managing director of Nestlé India, said the quarter saw strong, broad-based growth across all product groups, driven by robust double-digit volume growth. He added that the company significantly stepped up investments behind its brands, with advertising and marketing spends rising 46 per cent.
On commodity prices, the company said coffee and wheat are expected to remain range-bound, while sugar and edible oils have stabilised at elevated levels. Cocoa remains volatile on weather-driven crop concerns in key origins, and milk prices have strengthened seasonally but should ease as flush supplies arrive.
Market reaction
Despite the earnings beat, the stock fell sharply in Thursday's trade. Business Today reported the shares dropped 9 per cent to Rs 1,259 in the afternoon session from the previous close of Rs 1,384.15, with the company's market capitalisation slipping to Rs 2.53 lakh crore. The Hindu BusinessLine had earlier reported the stock trading about 7 per cent lower in the session.
Sources:
ET Now: Nestle India Q2 results FY27: Profit jumps 36% YoY to Rs 1,027 crore, revenue rises 20%
The Hindu BusinessLine: Q2 Results Highlights, 15th Oct
Business Today: Nestle India Q2 earnings: Net profit at Rs 1,026 crore, stock plunges 9%
The company's earnings exceeded ET Now poll estimates on profit, revenue, operating profit and margins, according to the channel's report.
The numbers
Standalone net profit rose 36.4 per cent to Rs 1,027 crore, against an ET Now poll estimate of Rs 1,008 crore. Standalone revenue grew 20.3 per cent year-on-year to Rs 6,788 crore, also ahead of the poll expectation of Rs 6,755 crore.
Operating profit (EBITDA) increased 31 per cent to Rs 1,614 crore, beating the estimated Rs 1,573 crore, while the operating margin expanded by 200 basis points to 23.8 per cent from 21.8 per cent a year ago. Earnings per share came in at Rs 5.32, up from Rs 3.90 in the year-ago quarter. Total sales grew 20.5 per cent to Rs 6,782.2 crore, with domestic sales growth at 20.4 per cent, The Hindu BusinessLine reported.
Manish Tiwary, chairman and managing director of Nestlé India, said the quarter saw strong, broad-based growth across all product groups, driven by robust double-digit volume growth. He added that the company significantly stepped up investments behind its brands, with advertising and marketing spends rising 46 per cent.
On commodity prices, the company said coffee and wheat are expected to remain range-bound, while sugar and edible oils have stabilised at elevated levels. Cocoa remains volatile on weather-driven crop concerns in key origins, and milk prices have strengthened seasonally but should ease as flush supplies arrive.
Market reaction
Despite the earnings beat, the stock fell sharply in Thursday's trade. Business Today reported the shares dropped 9 per cent to Rs 1,259 in the afternoon session from the previous close of Rs 1,384.15, with the company's market capitalisation slipping to Rs 2.53 lakh crore. The Hindu BusinessLine had earlier reported the stock trading about 7 per cent lower in the session.
Sources:
ET Now: Nestle India Q2 results FY27: Profit jumps 36% YoY to Rs 1,027 crore, revenue rises 20%
The Hindu BusinessLine: Q2 Results Highlights, 15th Oct
Business Today: Nestle India Q2 earnings: Net profit at Rs 1,026 crore, stock plunges 9%
