Fast moving consumer goods (FMCG) giant Nestle India shares declined nearly 3% in early trade on Thursday, July 23, a day after hitting a fresh 52-week high following its strong June quarter earnings.
The stock fell as much as 2.64% to an intraday low of Rs 1,452.80 per share on the BSE.
In the previous session, it had touched a 52-week high of Rs 1,509.75 after the company reported a robust set of Q1FY27 results.
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Nestle India reported a 48% year-on-year (YoY) jump in net profit to Rs 975 crore for the quarter ended June 30, compared with Rs 659 crore in the corresponding period last year (Q1FY26).
Topline, also known as revenue from operations, rose 25.2% to Rs 6,378 crore in the June quarter of FY27, from Rs 5,096 crore a year ago.
At the operating level, earnings before interest, tax, depreciation and amortisation (EBITDA) increased 39.7% YoY to Rs 1,537 crore. Subsequently,EBITDA margin improved 250 basis points (bps) to 24.1% from 21.6%.
Meanwhile, other income rose to Rs 22.5 crore from Rs 4.2 crore in the year-ago quarter.
The FMCG major said all product categories delivered double-digit growth during the quarter.
However, it flagged continued pressure on cocoa and sugar prices due to El Niño, while stating that it expects an adequate supply of coffee.
According to Jain, the Rs 1,510 level coincided with an established supply zone near the peak levels seen in May 2026, triggering a classic "sell-on-news" profit-booking despite the company beating market estimates.
He also noted that while the company's year-on-year performance remained robust, revenue and net profit moderated sequentially from the March quarter, declining about 5.5% and 12.5%, respectively, prompting short-term traders to take some money off the table.
Jain further said investors remain cautious over potential margin headwinds as management highlighted volatility in key commodities such as cocoa, sugar and dairy-based proteins, along with advertising expenditure that rose more than 40% year-on-year.
From a technical perspective, Jain said Nestlé India is currently testing a key resistance zone around Rs 1,510. A decisive close above this level on strong volumes could pave the way for further upside and resume the stock's broader bullish trend. However, if the stock fails to break past the hurdle, it may enter a phase of sideways consolidation as investors assess the recent earnings rally and commodity cost trends.
ALSO READ: Nestle India Q1 Result: Net Profit Jumps 48% To Rs 975 Crore, Revenue Up 25%
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