Nestle India shares drop after FMCG majors profit declined in Q1 FY26
Nestle India shares dropped 5 per cent after company declared April-June quarter results and mentioned the FMCJ major's profit declined 13.4 per cent to Rs 646 crore, while sales rise 5.8 per cent to Rs 5,073 crore.
New Delhi: The shares of Nestle India Ltd are in the news after the FMCG major declared its Q1 2025-26 Results on July 24, 2025. The company posted a 13.4 per cent decline in consolidated net profit to Rs 646.59 crore for the April-June 2025 quarter as compared to Rs 746.6 crore in the same quarter of previous financial year.
Shares of Nestle India were trading with 5 per cent loss at Rs 2,328.30 apiece on NSE. The FMCG sector stock gave negative return of over 8 per cent in the last one year.
Nestle India Q1 FY26 results
According to a regulatory filing by Nestle India, the company’s revenue from the sale of products recorded a jump of 5.86 per cent to Rs 5,073.96 crore in first quarter of FY26, while it stood at 4,792.97 crore in the corresponding period of the last financial year.
"The quarter was impacted by elevated consumption prices across the commodity portfolio. In addition, we witnessed higher operations costs as a result of significant expansion in manufacturing in the last seven to eight months," said Nestle India Chairman and Managing Director Suresh Narayanan.
The financial papers mentioned that Nestle India’s borrowings from commercial banks to fund temporary operational cash-flow requirements led to increase in finance costs in the Q1 FY26.
"However, we have noticed stabilising prices for edible oil and cocoa, a declining trend in coffee and a stabilising to modest increase in pricing of milk," said Narayanan.
The firm’s total expenses increased 9.25 per cent to Rs 4,199.73 crore in the April-June quarter, while domestic sales gained 5.45 per cent to Rs 4,860.01 crore as compared to Rs 4,608.50 crore in the corresponding period of the previous fiscal.
Its exports surged 16 per cent to 213.95 crore.
The final dividend payable for the financial year ended 2024-25 of 10.00 per equity share (face value of 1/- each) as approved by the shareholders in the Annual General Meeting held on 26th June 2025, will be paid on and from 24th July 2025, the filing stated.
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