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Mumbai: Nestlé India reported a strong performance for the fourth quarter of FY26, with consolidated net profit rising 27 per cent year-on-year to Rs 1,111 crore for the quarter ended March 31, 2026. The company had posted a profit of Rs 873 crore in the corresponding period last year.

Revenue from operations also saw robust growth, increasing 23 per cent to Rs 6,748 crore, compared to Rs 5,504 crore in the year-ago quarter. The earnings surpassed Street expectations, which had estimated profit at around Rs 926 crore and revenue at Rs 6,196 crore.

The company also announced a final dividend of Rs 5 per equity share for FY26, with July 10 fixed as the record date to determine shareholder eligibility.

Strong volume growth drives performance

According to Manish Tiwary, the company’s performance was driven by strong underlying volume growth across categories, supported by increased investments in brand building.

He noted that advertising and promotional spends rose by over 50 per cent during the quarter, helping boost demand across product segments. The company also maintained a healthy EBITDA margin of 26.3 per cent despite increased investments.

“Total sales and domestic sales for the quarter increased by 23.4 per cent and 23.1 per cent, respectively. Encouragingly, all product groups contributed to this performance,” Tiwary said.

Confectionery and beverages lead growth

Nestlé India’s confectionery segment registered high double-digit growth in both value and volume, supported by strong consumer traction across its flagship brands, including KitKat.

The powdered and liquid beverages segment also delivered strong performance, recording high double-digit growth. The company attributed this to rising coffee consumption, premiumisation trends and deeper market penetration across urban and semi-urban consumers.

The sustained growth in these segments highlights evolving consumer preferences, with increasing demand for indulgence products and premium beverage offerings.

Omni-channel strategy boosts reach

Nestlé India continued to expand its omni-channel presence, aligning with changing retail dynamics. The company reported strong traction across e-commerce and quick commerce platforms, while also strengthening its presence in modern trade and chain pharmacy networks.

At the same time, general trade channels across semi-urban and rural markets remained a key growth driver, ensuring broader reach and sustained demand.

This balanced distribution strategy has helped the company maintain consistent growth across geographies and consumer segments.

Input cost outlook remains mixed

On the cost front, the company indicated a mixed outlook. Coffee prices are expected to trend lower in the coming months, supported by favourable crop output in Vietnam and the upcoming harvest in Brazil.

However, Nestlé flagged concerns over rising edible oil prices, which are being influenced by higher global crude oil rates and increased diversion towards biodiesel production.

Additionally, unseasonal rains have impacted wheat production, leading to delays in harvesting and affecting both quantity and quality. This could have implications for input costs in the near term.

Conclusion

Nestlé India’s strong Q4 performance underscores its resilience and ability to drive growth through strategic investments, product innovation and expanded distribution. With steady demand across categories and a diversified channel strategy, the company remains well-positioned to navigate cost pressures while sustaining momentum.