Nestle India Financial Breakdown: Revenue, Profit & Ratios
FMCG major Nestle India reported its Q2 FY27 results on October 15, 2026: standalone net profit jumped 36.4% year-on-year to Rs 1,027 crore, revenue rose 20.3% to Rs 6,788 crore, and EBITDA margin expanded 200 basis points to 23.8%. The numbers beat analyst polls across every parameter — yet the stock fell nearly 7–9% on the day as investors fretted over lofty valuations. Here is a full financial breakdown of India's most premium FMCG stock: revenue and profit trends, margins, ratios, balance sheet strength, shareholding, dividend record and a peer comparison.
Business overview
Nestle India, the Indian arm of Swiss food giant Nestle S.A., is one of India's largest FMCG companies, with a market capitalisation of roughly Rs 2.6–2.7 lakh crore. Its portfolio spans household names across categories:
- Prepared dishes & cooking aids: Maggi (retains the highest market share in instant noodles)
- Beverages: Nescafe (coffee portfolio posted sustained double-digit growth)
- Confectionery: KitKat and Munch (both gained market share in FY26)
- Milk food & nutrition: Cerelac, Lactogen, Milkmaid
- Emerging: Purina pet food (high double-digit growth), out-of-home channels
The company reports a single business segment under accounting norms, so investors track product-category trends rather than segment numbers. Chairman & Managing Director is Manish Tiwary.
Fresh Q2 FY27 results (announced October 15, 2026)
The September quarter showed broad-based, volume-led growth. Domestic sales grew 20.4%, management reported double-digit volume growth across product groups, and advertising and marketing spends rose 46% as the company leaned into brand investment.
| Metric (standalone) | Q2 FY27 | Q2 FY26 | Change |
|---|---|---|---|
| Revenue from operations | Rs 6,788 cr | Rs 5,644 cr | +20.3% |
| EBITDA | Rs 1,614–1,615 cr | Rs 1,232–1,237 cr | +30.6–31% |
| EBITDA margin | 23.8% | 21.8–21.9% | +200 bps |
| Net profit (PAT) | Rs 1,027 cr | Rs 753 cr | +36.4% |
| EPS | Rs 5.32 | Rs 3.90 | +36.4% |
All four key parameters beat the ET Now poll (profit estimate Rs 1,008 cr, revenue Rs 6,755 cr, EBITDA Rs 1,573 cr, margin 23.3%) and were broadly in line with the CNBC-TV18 poll (profit Rs 1,018 cr, revenue Rs 6,789 cr, margin 23.4%). With Q1 FY27 profit at Rs 975 crore, first-half FY27 PAT now stands at roughly Rs 2,002 crore. Despite the beat, the stock dropped as much as 8.9% intraday to Rs 1,260.50 on the NSE — a classic "in-line is a sell" reaction at 70x-plus earnings.
Revenue trend (FY22–FY26)
Nestle India changed its financial year-end from December to March; the period ended March 2024 was a 15-month transitional period, so the trend below uses the comparable 12-month periods.
| Period | Total income / net sales (Rs cr) | PAT (Rs cr) | PAT growth |
|---|---|---|---|
| FY22 (Jan–Dec 2022) | 16,865 | 2,406 | — |
| FY23 (Jan–Dec 2023) | 19,126 | 2,999 | +24.6% |
| FY25 (Apr 2024–Mar 2025) | 20,202 | 3,315 | —* |
| FY26 (Apr 2025–Mar 2026) | 23,155 (net sales 23,071) | 3,545 | +6.9% |
*Not directly comparable — the transition period between FY23 and FY25 covered 15 months (per company filings).
Revenue has compounded at roughly 10% a year over FY22–FY26, and FY26's Rs 23,072 crore of net sales was the company's highest-ever annual revenue. Growth accelerated through FY26: Q4 FY26 (the March quarter) delivered 23% total-sales growth and record domestic sales of Rs 6,445.1 crore, with profit up 26% to Rs 1,114 crore and EBITDA margin at a healthy 26.3%.
Profitability and margins
Nestle India is among India's most profitable FMCG players. Key margin markers:
- FY26 operating margin: 22.8% (per Goodreturns financial data)
- FY26 net profit margin: ~15.3%
- Q2 FY27 EBITDA margin: 23.8%, up 200 bps year-on-year — cost discipline plus premium mix offset input inflation
Management flags commodity pressure as the running watch item: coffee and wheat are expected to stay range-bound, sugar and edible oils have stabilised at elevated levels, cocoa remains volatile on weather-driven crop concerns, and milk prices have strengthened seasonally. The mitigation playbook is continuous innovation, brand reinvestment and productivity-led cost efficiencies.
Balance sheet strength and cash flow
Nestle India is virtually debt-free: the debt-to-equity ratio is 0.00–0.01x, with FY26 interest cost of just Rs 158 crore against operating profits of roughly Rs 5,100 crore. The standout number is cash generation — standalone net cash from operating activities surged to Rs 5,047.6 crore in FY26, up from Rs 2,934.5 crore in FY25. A debt-free balance sheet plus 72% growth in operating cash flow gives the company full flexibility to fund capex, dividends and brand spend without borrowing.
Key ratios (FY26)
| Ratio | FY26 |
|---|---|
| Operating profit margin | 22.80% |
| Net profit margin | ~15.3% |
| Return on net worth (ROE) | 64.48% |
| Return on long-term funds (ROCE proxy) | 86.72% |
| Debt / equity | 0.00x |
| EPS (reported) | Rs 18.38 |
| Dividend payout ratio | ~54.5% |
| Current ratio | 0.73x |
Two flags for context: the sub-1.0 current ratio looks thin but is normal for a working-capital-light FMCG player with strong brand pull. Valuation is the real talking point — the stock trades at roughly 67–74x trailing earnings (per Finnhub, Business Standard and market trackers as of October 2026), one of the richest multiples among Indian consumer stocks.
Shareholding pattern (June 2026)
| Shareholder | Stake |
|---|---|
| Promoters (Nestle S.A., Switzerland) | 62.76% |
| Foreign institutional investors | 10.29% |
| Indian public | 11.97% |
| Insurance companies | 6.85% |
| Mutual funds | 4.15% |
| Non-institutional investors | 3.07% |
| Other institutional investors | 0.85% |
| Financial institutions | 0.06% |
Promoter holding is rock-steady at 62.76% with zero pledged shares. FIIs raised their stake to 10.29% (from 9.82% in September 2025), while mutual funds edged up to 4.15%.
Dividend history
- FY26: Rs 14 per share total dividend (including a Rs 5 final dividend, record date July 10, 2026) — payout ratio ~55%. (Per-share figures are on the post 1:1 bonus share capital of 192.83 crore shares; equity capital doubled from Rs 96.42 crore in FY25.)
- July 2026: a Rs 2 per share special dividend was declared.
- FY25: Rs 27 per share (pre-bonus basis), equivalent to ~Rs 13.5 on the post-bonus share count.
- Dividend yield: ~0.8–1.0% at current prices — investors buy Nestle India for growth and quality, not yield.
Peer comparison
Among listed Indian FMCG majors, Nestle India sits at the premium end of both quality and valuation (market data as of October 15, 2026; sources: Finnhub, Business Standard, Bajaj Markets):
| Company | Market cap | P/E (trailing) | Dividend yield |
|---|---|---|---|
| Nestle India | ~Rs 2.6 lakh cr | ~67x | ~0.8% |
| Hindustan Unilever | ~Rs 4.3–4.4 lakh cr | ~29–32x | ~2.0–2.2% |
| ITC | ~Rs 3.3 lakh cr | ~17x | ~5.5% |
| Britannia Industries | ~Rs 1.15 lakh cr | ~44–52x | ~1.9% |
Nestle's multiple is roughly 1.5x Britannia's and about 4x ITC's — the market prices in superior return ratios (ROE 64%, ROCE ~87%) and consistent volume growth, but leaves little room for disappointment, as the post-results selloff showed.
Key risks
- Demanding valuation: at ~67x trailing earnings, any growth miss or margin squeeze gets punished hard — Q2 FY27 itself is the case study.
- Input-cost inflation: volatile cocoa, elevated sugar and edible oils, and seasonal milk price strength can squeeze gross margins.
- Competition: regional brands and D2C challengers are gaining shelf space in premium foods.
- Regulatory: tighter norms on processed-food labelling and sugar content could raise compliance costs.
- Urban demand fatigue: premium consumption recovery has been uneven; rural demand remains the offset.
Conclusion
Nestle India remains one of India's cleanest FMCG franchises — debt-free, ~87% return on capital, growing cash flows, and a portfolio of brands that dominate their categories. Q2 FY27 reinforced the operational story with 20% revenue growth, 36% profit growth and 200 bps of margin expansion. The counterweight is price: at ~67x trailing earnings, the stock demands near-flawless execution, and today's 7–9% selloff on a beat-everything quarter is a reminder that in premium stocks, expectations matter as much as earnings.
Disclaimer: This article is for educational purposes only and is not investment advice. Please consult a SEBI-registered investment adviser before making investment decisions.
FAQs
What was Nestle India's Q2 FY27 profit?
Standalone net profit rose 36.4% year-on-year to Rs 1,027 crore for the quarter ended September 30, 2026, against Rs 753 crore in Q2 FY26.
What was Nestle India's revenue in Q2 FY27?
Revenue from operations rose 20.3% to Rs 6,788 crore. Domestic sales grew 20.4% with double-digit volume growth.
What was Nestle India's EBITDA margin in Q2 FY27?
EBITDA margin expanded 200 basis points to 23.8% from 21.8–21.9% a year ago; EBITDA rose ~31% to Rs 1,614–1,615 crore.
Is Nestle India debt-free?
Essentially, yes. Its debt-to-equity ratio is 0.00–0.01x, with FY26 interest cost of only Rs 158 crore.
What is Nestle India's dividend for FY26?
Rs 14 per share total (including a Rs 5 final dividend), implying a payout ratio of ~55%. A Rs 2 special dividend was also declared in July 2026.
Who owns Nestle India?
Nestle S.A. (Switzerland) holds 62.76% of the company. FIIs hold 10.29%, the Indian public 11.97%, insurance companies 6.85% and mutual funds 4.15% (as of June 2026).
Why did Nestle India shares fall after strong Q2 results?
The stock fell as much as 8.9% on October 15, 2026 despite beating estimates, on valuation concerns — it trades at ~67x trailing earnings — and caution around food-inflation commentary from management.
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