Nestle India Q2 results show 36% profit jump to Rs 1,027 crore on strong domestic demand

Strong consumer demand drives stellar quarterly earnings

Nestle India reported a 36.4 per cent jump in standalone net profit to Rs 1,027 crore for the second quarter of the financial year 2026-27, buoyed by surging domestic demand and robust volume-led expansion across its main product lines. Revenue from operations for the July-September quarter expanded by 20.3 per cent year-on-year to Rs 6,788 crore, compared with Rs 5,644 crore during the corresponding period last year.

The strong performance underscores the resilience of Indian household consumption and expanding rural reach. Operating margins improved by 200 basis points to 23.8 per cent, up from 21.9 per cent a year earlier. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 30.6 per cent to Rs 1,615 crore, demonstrating tight operational efficiency and pricing discipline.

Segment performance and sales breakup

Domestic sales jumped 20.4 per cent to Rs 6,514.74 crore, supported by double-digit volume gains in confectionery, beverages and prepared dishes. Export revenues grew 22 per cent to Rs 267.43 crore, reflecting growing international demand for Indian-manufactured products.

The confectionery arm registered strong double-digit growth led by KitKat, Munch and Milkybar. Beverage sales advanced on higher household adoption of Nescafe offerings, while Maggi noodles expanded its footprint in rural markets through direct distribution expansion.

Strategic brand investments and outlook

Manish Tiwary, chairman and managing director of Nestle India, noted that the quarter recorded broad-based volume growth supported by a 46 per cent increase in advertising and marketing spend.

To expand its physical footprint and digital presence, the company leaned heavily on quick-commerce channels in urban centres and expanded distribution in tier-two and tier-three markets. On the international front, the company expanded the distribution of Maggi Masala-e-Magic to Canada and Nescafe Sunrise into five West African countries.

Although shares eased in trading following the earnings announcement as market participants locked in profits following recent rallies, management expressed confidence in navigating input cost dynamics. Nestle India noted that coffee and wheat costs remain range-bound, while sugar and edible oils have stabilized, ensuring stable operating conditions for the remainder of the fiscal year.