Nestle India Q3 Profit Jumps 46% to ₹1,018 Crore in FY26

Nestle India has reported a robust financial performance for the third quarter of the fiscal year 2026, posting a significant 46.2% year-on-year increase in net profit. The fast-moving consumer goods (FMCG) major announced that its profit after tax reached ₹1,018.1 crore for the October-December period. This strong bottom-line growth was driven by record quarterly sales and the strongest volume growth seen in nearly five years, signaling a healthy recovery in consumer demand. Alongside the strong earnings, the company's board also declared an interim dividend for its shareholders.

Record Sales and Revenue Growth

The company achieved its highest-ever quarterly sales, with total revenue from operations surging 18.5% year-on-year to ₹5,643.5 crore. This growth was broad-based, with positive contributions from all product categories and distribution channels. Domestic sales, which form the bulk of the revenue, grew by 18.32% to ₹5,402.6 crore. The export business also delivered a strong performance, with sales jumping 22.86% to ₹240.92 crore, driven by high demand for products like coffee in international markets.

Key Financial Metrics for Q3 FY26

The company's operational efficiency was evident in its financial metrics. Despite increased advertising spending, the company managed its profitability effectively.

Management's Perspective on Performance

Manish Tiwary, Chairman and Managing Director of Nestle India, attributed the strong results to a combination of strategic initiatives and favorable market conditions. He highlighted that the company's performance was driven by capacity expansion, significant brand investments, and a recovery in consumption following GST rate rationalization. Tiwary noted that 2025 was a landmark year for the company in terms of market reach, particularly with strong expansion in rural areas.

Strong Performance Across Product Categories

Nestle India witnessed positive volume-led growth across all four of its major product groups, with three of them recording double-digit growth.

• Confectionery: This segment emerged as the fastest-growing category. Brands like KITKAT and MUNCH saw high double-digit volume growth, supported by strong rural demand, premiumisation, and higher in-home consumption.
• Powdered and Liquid Beverages: This category, which includes NESCAFÉ, recorded its 18th consecutive quarter of double-digit growth, successfully bringing over 4.1 million new households into the coffee category in 2025.
• Prepared Dishes and Cooking Aids: The iconic MAGGI brand led this segment with double-digit volume growth, supported by new marketing campaigns and an optimized price-pack portfolio for rural markets.
• Milk Products and Nutrition: This group delivered mid-single-digit growth, with brands like MILKMAID showing a strong trajectory and EVERYDAY showing signs of recovery.

Channel-Wise Growth Momentum

The company reported strong momentum across all its sales channels. General trade saw a sharp acceleration, particularly in rural markets. E-commerce continued its robust growth, with quick commerce platforms gaining significant traction. The out-of-home (OOH) business also expanded steadily across its core food and beverage categories, with strong machine deployments in restaurants, offices, and educational institutions.

Navigating Commodity Price Trends

On the cost front, Nestle India noted a mixed outlook for key commodities. Milk prices have remained firm despite the flush season due to robust demand. Edible oil prices are also elevated and are expected to remain so in the first half of 2026. However, coffee prices have stabilized at lower levels compared to the previous year, aided by favorable crop yields in key producing regions like Vietnam and India.

Dividend Announcement and Stock Market Reaction

In light of the strong performance, Nestle India's board approved an interim dividend of ₹7 per equity share for the financial year 2025-26. The dividend is scheduled to be paid on or after February 26, 2026. The positive earnings report was well-received by the market. Nestle India's stock price gained 3.41%, closing at ₹1,331.60 and hitting a 52-week high on the day of the announcement.

Future Outlook and Strategic Investments

Looking ahead, the company remains focused on innovation, operational excellence, and leveraging technology to create long-term value. In a significant move towards sustainability, Nestle India has approved in-principle investments in two special purpose vehicles (SPVs) with Adani Green Energy and Radiance Renewables to set up captive renewable energy power plants. This initiative is aimed at securing cost-effective green energy for its manufacturing facilities.

Conclusion

Nestle India's third-quarter results for FY26 demonstrate a powerful combination of strong consumer demand, effective brand strategy, and operational efficiency. The record sales and a 46% surge in profit, backed by the highest volume growth in five years, position the company for sustained momentum. With a clear focus on expanding its reach, investing in brands, and embracing sustainable practices, Nestle India appears well-equipped to navigate the dynamic FMCG landscape.