Nestlé India's (NSE:NESTLEIND, BOM:500790) profit jumped 48% during the first quarter of the fiscal year 2026-2027, with sales remaining solid despite the global supply chain being partially affected as a result of geopolitical tensions.
Profit rose to 9.75 billion rupees from 6.59 billion rupees in the previous year, according to a Wednesday earnings release from the confectionery product maker.
Earnings per share climbed year over year to 5.06 yuan from 3.42 yuan.
Revenue increased to 63.8 billion rupees from nearly 51 billion rupees a year earlier.
Total sales grew 25%, while exports jumped 36% from the previous year.
Nestlé India's chairman and managing director, Manish Tiwary, said all four product groups - beverages, prepared dishes, milk products, and pet food - recorded double-digit growth. The company's chocolate brand KitKat continued to gain market share, while the Nescafé franchise expanded its reach due to increased coffee penetration and other factors.
"Even as we delivered strong business performance, we remained focused on building the capabilities, partnerships and value chains that strengthen our business for the long term," Tiwary said.
Analysts from Jefferies noted that Nestlé India delivered a strong performance partly due to broader industry trends. However, the El Niño weather phenomenon may affect base ingredient prices as it brings lower crop estimates.
"Coffee prices are expected to remain soft, supported by higher output from Brazil or Vietnam although near-term volatility may persist. Cocoa & sugar prices remain under pressure due to erratic rainfall & lower crop estimates," Jefferies analysts said.
"Edible oil prices are elevated but stable. Wheat & milk are expected to remain range-bound, while protein complex continues to face inflationary pressure due to higher demand."
