Stories
Nestle India Shares Face Sharp Decline Despite Strong Q2 Results And Growth.
M
Moneycontrol•16-10-2026, 13:19
Nestle India Shares Face Sharp Decline Despite Strong Q2 Results And Growth.
- •Nestle India shares witnessed a sharp decline for the second consecutive session despite reporting strong financial results for the second quarter.
- •Brokerage firm HSBC maintained its hold rating on the stock with a target price of 1,480 rupees while warning of potential slowdown in revenue growth.
- •The company reported a 35.9 percent year-on-year jump in consolidated net profit at 1,009.6 crore rupees for the quarter ended September.
- •Management expressed concerns over rising food inflation and commodity costs, which triggered heavy selling pressure on the stock.
Key Questions Answered
For the quarter ended September 2026, Nestle India reported a 35.9 percent year-on-year increase in consolidated net profit to Rs 1,009.6 crore, while revenue from operations rose 20.3 percent to Rs 6,788.3 crore.
Despite strong profit and revenue growth, Nestle India's shares plunged due to management concerns flagged regarding rising food inflation and ongoing commodity cost pressures.
Brokerage firm HSBC maintained a 'Hold' rating on Nestle India with a target price of Rs 1,480, implying an upside of around 16 percent, though it cautioned that revenue growth could moderate in the second half of FY27.
