Nestle Shares Hit Over Three-Month High After Strong Q3 Results, Dividend Announcement

Shares of Nestle India Ltd. rose nearly 8% on Friday after the company posted strong third-quarter results for the financial year 2025. The company has also announced a dividend of Rs 14.25 per share.

The maker of Maggi instant noodles posted a 5% jump in net profit at Rs 688.01 crore. Revenue increased by 3.9% year-on-year for the three months ended December, reaching Rs 4,779.73 crore. Operating income, or earnings before interest, taxes, depreciation, and amortisation, fell 1% year-on-year to Rs 1,084.93 crore. The Ebitda margin contracted by 110 basis points to 22.7% from 23.8% in the same period the previous year.

The company announced an interim dividend of Rs 14.25 per share amounting to Rs 1.37 lakh crore that will be paid on and from Feb. 27. This is in addition to the first interim dividend of Rs 2.75 paid on Aug. 6.

Nestle India’s powdered and liquid beverages business was the largest growth contributor in the December quarter, with Nescafe strengthening its leadership position. Nescafe achieved significant milestones, surpassing Rs 2,000 crore in retail business over the last year and gaining market share by reaching 3.7 million new households. Nestle also expanded its distribution reach by 5% in the past year, aided by its urban strategy and a focus on ‘penetration-led growth.’

Kitkat recorded double-digit growth, while Maggi noodles and Masala-ae-Magic in the Prepared Dishes and Cooking Aids segment posted high single-digit growth. The pet care business, especially the premium ‘Felix’ brand, saw strong growth, as did the nutrition business for toddler milk and specific nutritional needs.

Nestle’s joint venture with Dr. Reddy’s Laboratories in Health Science showed strong growth, contributing to their health and wellness focus. E-commerce grew at a high double-digit rate, contributing 9.1% to sales. Environmental sustainability remained a priority, with efforts like biodigester installations reducing methane emissions and improving agricultural practices.

Nestle share price rose as much as 7.65% to Rs 2,387 apiece, the highest level since Oct. 17, 2024. It pared gains to trade 6.17% higher at Rs 2,358.60 apiece, as of 12:28 p.m. This compares to a 0.82% advance in the NSE Nifty 50 index.

It has fallen 6.12% in the last 12 months. Total traded volume so far in the day stood at 3.4 times its 30-day average. The relative strength index was at 69.

Out of 38 analysts tracking the company, 12 maintain a 'buy' rating, 19 recommend a 'hold,' and seven suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 1.6%.