Nestle India Share Price Falls Nearly 6% After Q1 Profit Misses Estimates

Shares of Nestle India Ltd. fell sharply on Thursday, declining 5.59% after the company reported a weaker-than-expected performance for the first quarter of FY26. The stock came under pressure as investors reacted to a miss on both profit and margin expectations, despite a modest rise in revenue.

The FMCG major posted a standalone net profit of Rs 659.2 crore for the April–June quarter, down 11.7% from Rs 746.6 crore a year earlier. The figure came in well below the Rs 751 crore consensus estimate tracked by Bloomberg. Revenue for the quarter rose 5.9% year-on-year to Rs 5,096 crore, slightly missing the projected Rs 5,103 crore.

Operating performance also disappointed. Ebitda declined 1.3% to Rs 1,100.2 crore, compared to an estimate of Rs 1,181 crore, while operating margins narrowed to 21.6% from 23.1% a year ago. The company attributed the margin pressure to rising commodity prices and higher operating and finance costs, which offset the gains from top-line growth.

The scrip fell as much as 5.59% to Rs 2,315.40 apiece. It pared losses to trade 4.68% lower at Rs 2,33.70 apiece, as of 12:53 p.m. This compares to a 0.59% decline in the NSE Nifty 50 Index.

It has fallen 8.02% in the last 12 months. Total traded volume so far in the day stood at 5 times its 30-day average. The relative strength index was at 37.

Out of 40 analysts tracking the company, 10 maintain a 'buy' rating, 18 recommend a 'hold,' and 12 suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an downside of 3.5%