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Nestle India Stock Falls Up To 8% Despite Meeting Q2 Expectations
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CNBC TV18•15-10-2026, 12:54
Nestle India Stock Falls Up To 8% Despite Meeting Q2 Expectations
- •Nestle India shares dropped more than 5 percent on Thursday despite reporting September quarter results that met market expectations.
- •Net profit for the September quarter increased by 36.4 percent year-on-year to ₹1,027 crore, while revenue rose 20.3 percent to ₹6,788 crore.
- •A sell-off was triggered because the market was anticipating a much larger beat on the financial numbers rather than just meeting estimates.
- •Management commentary highlighting rising food inflation and volatile commodity costs like cocoa added to investor concerns.
- •The company witnessed strong broad-based volume growth across product groups including confectionery, beverages, and prepared dishes.
Key Questions Answered
Nestle India reported a 36.4% year-on-year increase in net profit to ₹1,027 crore and a 20.3% rise in revenue from operations to ₹6,788 crore for the September quarter of financial year 2026-27. On a consolidated basis, net profit reached ₹1,009.6 crore while total revenue grew to ₹6,788.3 crore.
Nestle India's shares fell by up to 8% because the market was anticipating an even larger beat on the quarterly numbers and because management flagged rising food inflation and commodity cost pressures.
Nestle India expects coffee and wheat prices to remain range-bound, while sugar and edible oils have stabilized at elevated levels. Meanwhile, cocoa continues to remain volatile due to weather-related crop concerns in key producing regions.
