Nestle India Q4 Preview: Revenue Seen Rising, Margin Pressure Persists

Nestle India is expected to report higher revenue and profit in the March quarter, supported by volume-led domestic growth and improved trade conditions, while margin pressure from input costs and higher spending may weigh on profitability. The Maggi maker is scheduled to announce its fourth quarter results on Tuesday.

Bloomberg estimates indicate revenue may rise 12% year-on-year, while Ebitda is seen up 8% and profit up 5%. Margin is expected to moderate to 24.21% from 25.23% a year earlier. Underlying volume growth is projected at 3.75%, pointing to continued demand resilience despite a softer consumption backdrop.

The March quarter may show demand resilience, but slower profit growth than revenue suggests margin pressure is building. Commentary on pricing actions, category momentum and the ability to absorb higher commodity and packaging costs will be central to the earnings update.

Nestle Q4 Preview (Bloomberg Estimates) (Standalone, YoY)

• Revenue seen 12% higher at Rs 6,186 crore versus Rs 5,504 crore

• Ebitda seen 8% higher at Rs 1,498 crore versus Rs 1,389 crore

• Margin seen at 24.21% versus 25.23%

• Profit seen 5% higher at Rs 926 crore versus Rs 885 crore

• Underlying volume growth seen at 3.75%

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Here's what analysts tracekd by Bloomberg are expecting from Nestle Q4 results

Nirmal Bang

• Revenue expected to grow about 8.1% year-on-year, supported by volume growth of around 2.6%.
• Gross margin likely to decline modestly year-on-year.
• Ebitda margin expected to contract sharply year-on-year, though improve sequentially.
• Absolute Ebitda and profit expected to decline year-on-year.

JM Financial

• Sales expected to post mid-teens growth in the quarter.
• Growth likely led by low double-digit volume growth and low single-digit pricing.
• Gross margin expected to contract marginally.
• Higher advertising and staff costs may weigh on Ebitda margin.

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Motilal Oswal

• Models 17% year-on-year consolidated revenue growth.
• Domestic business expected to rise 12%, led by volume growth.
• Gross profit margin expected to decline modestly.
• Ebitda margin seen contracting year-on-year.
• Growth supported by trade normalisation after GST implementation.

Nuvama

• Expects consolidated revenue growth of 13% year-on-year.
• Domestic sales seen rising 11%-12%, with domestic volumes up about 9%.
• Export revenue expected to grow 15%-18%.
• Ebitda expected to rise 8% year-on-year.
• Gross and Ebitda margins expected to decline year-on-year.

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