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Nestlé India on Friday reported a sharp 46% rise in quarterly profit, driven by stronger demand for packaged food products such as Maggi noodles and KitKat, following recent income and consumption tax cuts that boosted consumer spending.

Strong profit growth in December quarter

The Indian arm of Swiss food major Nestlé said its net profit rose to ₹1,018 crore for the quarter ended December 31, compared to ₹696 crore in the same period last year. The robust performance reflected improving consumer sentiment amid easing inflationary pressures.

Following the announcement, Nestlé India shares surged as much as 4%, touching their highest level since October 2024.

Revenue up on chocolates, rural push

Revenue for the third quarter grew nearly 19% to ₹5,667 crore. The company said its KitKat and Munch chocolate brands recorded double-digit volume growth, supported by new product launches, increased focus on rural markets and rising demand from quick-commerce delivery platforms.

Chairman and Managing Director Manish Tiwary said the quarter marked record sales and the strongest volume growth in nearly five years. He attributed the performance to a recovery in demand after tax cuts, along with sustained investments in production capacity and advertising.

Industry comparison and outlook

While several consumer goods peers faced pressure from charges to India’s new labour codes, Nestlé India said it incurred only a relatively small impact. Other companies such as Godrej Consumer Products and ITC reported weaker quarterly profits partly due to these charges.

Analysts said improving urban demand, aided by tax relief and stabilising prices, has helped consumer-facing firms overcome a prolonged slowdown caused by muted wage growth.

Nestlé India’s performance highlights how policy measures and strategic brand investments are beginning to revive discretionary consumption, offering cautious optimism for the broader fast-moving consumer goods sector.