Sales increase 20.5 per cent to Rs 6,782 crore on double-digit volume growth, while Chairman and Managing Director Manish Tiwary flags rising food inflation and the company raises advertising and marketing expenditure by 46 per cent
Nestlé India reported a 36.3 per cent year-on-year increase in profit after tax (Pat) to Rs 1,026.8 crore for the second quarter of FY27, as total sales rose 20.5 per cent to Rs 6,782.2 crore, supported by double-digit volume growth across its product groups.
Domestic sales grew 20.4 per cent during the quarter, the company said in its financial results approved by the board of directors. Earnings per share stood at Rs 5.32, while earnings before interest, tax, depreciation and amortisation (Ebitda) margin was 23.8 per cent.
The company increased advertising and marketing expenditure by 46 per cent during the quarter, while continuing to focus on operational efficiencies to manage commodity costs. Chairman and Managing Director Manish Tiwary said rising inflation, particularly food inflation, remained a challenge for the business.
“We remain focused on navigating these external challenges through continuous innovation and renovation, sustained investments behind our brands, and an intensified focus on productivity and operational efficiencies to mitigate commodity cost pressures,” Tiwary said.
Volume Growth Across Product Categories
Nestlé India reported double-digit, volume-led growth in its confectionery business, driven by market share gains in KitKat and continued momentum in Munch and Milkybar. The company also strengthened its premium confectionery portfolio with the launch of KitKat Delights Choco Lava.
The powdered and liquid beverages business recorded broad-based growth, supported by household reach, affordability initiatives and premiumisation across its coffee portfolio. Nescafé Gold maintained double-digit growth, while Nescafé Ready-to-Drink continued to expand, with cold coffee emerging as a growth area for the category.
The prepared dishes and cooking aids business also reported strong growth. Maggi noodles expanded through rural penetration, while Maggi Masala-ae-Magic focused on increasing household penetration by promoting regional dish applications. The company also scaled up its Maggi Veg Atta offering and expanded its product range.
Milk products and nutrition recorded broad-based growth, with toddler-specific products delivering strong growth and market share gains, according to the company.
Nestlé India’s pet food business posted double-digit growth, supported by digital consumer engagement and distribution initiatives. The company expanded its cat food portfolio through Felix Gravy Lover, Pro Plan Cat and Friskies wet cat food offerings.
Nestlé Professional, which serves the out-of-home consumption segment, also delivered double-digit, volume-led growth, supported by premium products, customer acquisition and innovation.
Ecommerce And Rural Markets Support Growth
Ecommerce remained a growth driver, with the company attributing its performance to continued momentum in quick commerce, improved product availability, channel-specific assortments and targeted shopper engagement. Organised trade also recorded strong growth across key categories, supported by in-store execution, consumer activations and expansion of the store network.
General trade delivered double-digit growth across town classes, with rural markets providing strong momentum. Nestlé India said the expansion of rural distribution touchpoints had improved direct reach and market coverage.
In the out-of-home segment, the company expanded its beverage offerings through Nescafé Duo Gusto, which it describes as a hot-and-cold beverage machine, and cold beverage solutions such as Nestlé Shikanji. Foodservice applications of Maggi Coconut Milk Powder and Milkmaid also expanded across coastal cuisine, cafés and bakeries.
Exports maintained double-digit growth, supported by portfolio expansion and market development. During the quarter, Maggi Masala-ae-Magic entered Canada, while Nescafé Sunrise expanded into five West African markets. The company also introduced a new instant coffee variant in the Middle East.
Marketing Investments And Cost Pressures
The increase in advertising and marketing expenditure indicates a higher level of investment behind brands as Nestlé India seeks to sustain volume growth and strengthen category penetration. However, the company’s reported Ebitda margin of 23.8 per cent will be an important metric to monitor as commodity inflation and higher brand-building expenditure affect operating costs.
The company said it continued to pursue productivity improvements and operational efficiencies to mitigate input-cost pressures. Its quarterly results statement did not provide a detailed breakdown of the contribution of pricing, product mix and individual product categories to overall sales growth.
Nestlé India also highlighted the use of digital tools to improve sales execution. Following its NestMitra platform for retailers, the company is deploying a sales officer application that provides near-real-time market insights to help sales teams identify opportunities and improve retailer engagement.
