FMCG giant Nestle India Ltd. shares came under selling pressure on Tuesday after the company flagged a potential moderation in consumption and highlighted geopolitical uncertainties as near-term risks despite reporting a strong set of June-quarter earnings.
The stock fell as much as 4.49% to an intraday low of Rs 1,448.85 per share. At 2 pm, Nestle India shares were trading 3.03% lower at Rs 1,471 apiece. By comparison, the BSE Sensex was down 0.5% at 78,247.
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The FMCG major said overall consumption and food and beverage demand could moderate in the near term, citing inflationary pressures arising from the West Asia conflict and weather-related uncertainties linked to El Niño.
The company also flagged geopolitical developments as a key watchout, noting risks to supply continuity and cost inflation. It highlighted volatility in energy, packaging materials and edible oil prices, disruptions in shipping and elevated freight costs, pressure on raw material availability, as well as fluctuations in commodity prices and currencies.
These concerns overshadowed an otherwise robust June-quarter performance.
Nestle India reported a 48% year-on-year (YoY) increase in consolidated net profit to Rs 975 crore in the June quarter of FY27, compared with Rs 659 crore a year earlier.
Revenue, or topline, rose 25.2% to Rs 6,378 crore from Rs 5,096 crore in the corresponding quarter last year.
Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 39.7% YoY to Rs 1,537 crore from Rs 1,100 crore, while EBITDA margin expanded to 24.1% from 21.6% a year ago.
Other income rose to Rs 22.5 crore during the quarter from Rs 4.2 crore in the year-ago period.
The company said all product categories delivered double-digit growth during the quarter.
However, it cautioned that cocoa and sugar supplies remain under pressure due to El Niño, while adding that it expects an adequate supply of coffee.
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