Nestle India's stock slid for a second consecutive day on Friday, even as the food company's Q2FY27 earnings revealed a 36 per cent rise in net profit compared with the same period a year earlier, alongside double-digit volume growth. After opening at ₹1,289.70, the share retreated through the session to touch ₹1,257.10 — a decline of 1.5 per cent that left it trading below its starting level.
Nestle India's stock ended Thursday's session down 7.7 per cent at ₹1,275.80 on the NSE, a decline that followed the release of second-quarter results from the Swiss food giant's local unit.
Nestle India's consolidated net profit for the second quarter reached ₹1,000.61 crore, a figure that represents a 35.81 per cent increase over the ₹734.17 crore the company recorded in the same quarter of the previous financial year, as disclosed through an exchange filing. Product revenue climbed 20.45 per cent against the prior-year period, reaching ₹6,782.17 crore for the July–September quarter of FY27, up from ₹5,630.23 crore recorded across the same three months a year earlier.
Earnings before interest, tax, depreciation, and amortisation climbed a third compared with the prior year, reaching ₹1,570 crore, and the corresponding margin expanded by over 200 basis points to settle at 23.1 per cent. Total revenue across every product category climbed 20.5 per cent during the July-to-September period, underpinned by double-digit volume gains throughout the portfolio, according to Chairman and Managing Director Manish Tiwary.
Domestic turnover at Nestlé India reached ₹6,514.74 crore, a 20.4 per cent increase over the prior period, while export earnings advanced by 22 per cent, with both figures underpinned by a broader product range and ongoing efforts to develop new markets.
Price pressures and rising input costs featured among the obstacles that leadership brought up when conducting its operational assessment. Packaging materials, edible oils, and agricultural commodities have all pushed input costs higher for the company, even as targeted price adjustments and tax reductions lent some support to revenue; Tiwary noted that food price inflation in particular had created a harder operating environment, with commodity expenses adding to the strain.
Ongoing investment in the brand, a drive to lift operational efficiency, and a pipeline of new product and process developments were outlined as the company's priorities for tackling those challenges.
Nestle India's latest quarterly figures came in broadly where the market had anticipated, according to Sunny Agrawal, who leads fundamental research at SBI Securities. Food inflation's upward trajectory, he observed, carries the potential to weigh on consumer demand and compress margins over the coming period, while the tailwind from last year's elevated base adds a further layer of caution around near-term growth; taken together, the results themselves contained little to draw concern, yet the broader pricing environment has made investors increasingly wary of how those conditions might translate into the company's operating performance, he added.
Nestle India's outlook places coffee and wheat in a broadly stable pricing band, while sugar and edible oils, though holding at higher levels, are no longer moving sharply in either direction. Price swings in the cocoa market have persisted, with harvest outlooks in the principal growing regions tied closely to shifting weather patterns. Dairy prices have climbed along their usual seasonal curve, though analysts expect that upward movement to reverse once plentiful new production enters the market.
Brokerage house JM Financial noted that Nestle India's second-quarter FY27 results came in broadly as anticipated, adding that a base-effect comparison — rather than any weakening of the company's underlying business position — would make revenue expansion appear softer in the second half of FY27 relative to the first. A revised valuation from JM Financial placed the stock's target at ₹1,450 — down from the earlier figure of ₹1,610 — while the brokerage held its 'Add' rating in place.
Holding its 'Accumulate' stance, Elara Capital trimmed the share price objective to ₹1,506 — down from ₹1,625 — anchored to a 58x multiple applied against September FY28 earnings-per-share projections. Volumes climbed an estimated 12 per cent over the period, while EBITDA expanded by a third — reaching a 33.3 per cent gain — even as marketing outlays rose 46 per cent, with the improvement in EBITDA margin attributable to a reduction in staff-related expenditure.
Brokerage house Nirmal Bang assigned a 'Hold' rating to Nestle India shares, pinning a target price of ₹1,485 on a valuation of 60 times the projected earnings per share for September 2028, while noting that revenue momentum across every product category has returned to double-digit territory.
