Nestle India Posts Stellar Q3 Performance with 45% Profit Surge
In a remarkable financial disclosure, Nestle India has announced a substantial increase in its consolidated net profit for the third quarter ending December 2025. The FMCG giant reported a net profit of Rs 998.42 crore, marking a significant 45.12 per cent rise compared to the Rs 688.01 crore recorded in the same period last fiscal year.
Record-Breaking Revenue and Volume Growth
The company's impressive profit growth is underpinned by its highest-ever quarterly revenue, which reached Rs 5,643.5 crore, reflecting an 18.5 per cent surge. This performance is attributed to the strongest volume growth witnessed in nearly five years, indicating robust consumer demand across markets.
Consolidated revenue from operations also saw a healthy increase, rising 8.56 per cent to Rs 5,667.04 crore from Rs 4,779.73 crore in the year-ago quarter. According to Chairman and Managing Director Manish Tiwary, this growth was driven by strategic investments in capacity expansion and brand building, supported by market recovery following GST benefits.
Strategic Investments and Market Expansion
Nestle India significantly boosted its consumer-focused media and advertising spending by 42 per cent year-on-year during the quarter. The company's EBITDA margin stood at a solid 21.3 per cent, reflecting efficient operational management.
The growth trajectory has been further accelerated by faster decision-making processes and positive momentum from GST rate rationalization. Total expenses for the quarter increased 20.86 per cent to Rs 4,667.63 crore, reflecting the company's expanded operational scale.
Segment-Wise Performance Highlights
Domestic Sales: Climbed 18.32 per cent to Rs 5,402.6 crore, demonstrating strong market penetration.
Export Revenue: Increased 22.86 per cent to Rs 240.92 crore, driven by strong demand across product groups and expanded market presence in Thailand and Papua New Guinea.
Product Category Performance:
- Prepared Dishes and Cooking Aids: Maggi Noodles delivered double-digit volume growth
- Milk Products and Nutrition: Milkamaid showed strong growth, Everyday recovered in key geographies, toddler milk products gained market share
- Confectionery: KitKat witnessed high double-digit volume growth, especially in rural areas; Munch maintained double-digit growth momentum
- Beverages: Nescafe Classic, Sunrise, and Gold continued strong performances
Market Dynamics and Commodity Outlook
Nestle India noted that milk prices remain firm despite the flush season, driven by robust demand. Edible oil prices continue to trade at elevated levels and are expected to remain sideways in the first half of 2026. However, the upcoming wheat harvest in April 2026 looks promising, and coffee prices have stabilized at lower levels due to favorable crop yields in Vietnam and India.
Corporate Developments and Market Response
The company's board has approved an interim dividend of Rs 7 per equity share for the financial year 2025-26. This announcement comes as Nestle India shares settled at Rs 1,331.45 apiece on the BSE, registering a 3.39 per cent increase, reflecting positive investor sentiment toward the company's performance.
2025 has been described as a landmark year for Nestle India, with the company achieving the highest absolute and percentage reach gain in a single year, excluding the exceptional COVID period. This performance was led by strong expansion in rural markets, while urban performance remained best-in-class compared to industry peers.
The company also highlighted accelerated momentum in e-commerce, particularly quick commerce, while organized trade continued its strong, broad-based growth across categories, supported by festive activations and new product launches.
