Nestle Q4 Results: Profit Drops 5% On Cost Pressures, Meets Street View

Nestle India Ltd.’s profit for the three months ended March fell 5% year-on-year, as rising input costs weighed on margins, even as the company’s earnings matched analyst expectations.

The maker of Maggi noodles and Nescafé coffee reported a net profit of Rs 885.4 crore for the March quarter, according to a filing to the stock exchanges on Thursday. Revenue from operations rose 4.5% to Rs 5,503.8 crore from Rs 5,268 crore a year earlier, broadly in line with the Bloomberg consensus estimate of Rs 5,495 crore.

The cost of materials consumed rose nearly 13% year-on-year to Rs 2,345.87 crore in the quarter, compared to Rs 2,075.82 crore in the same period last year, according to the company’s balance sheet. Total sales and domestic sales during the quarter rose 3.7% and 4.2%, respectively.

JPMorgan said moderating prices of cocoa and edible oils should support an improvement in gross margins going ahead, even though some input costs—such as coffee and dairy—remain elevated. The combination of improving volume growth and a more positive margin outlook could aid share price performance, the brokerage said.

The company has also announced a dividend of Rs 10 per share with payout record date set at July 24, following approval from its board of directors.

• Revenue up 4.5% to Rs 5,503.8 crore versus Rs 5,268 crore (Bloomberg estimate: Rs 5,495 crore).

• Ebitda up 3% to Rs 1,388.9 crore versus Rs 1,350 crore (Bloomberg estimate: Rs 1,325 crore).

• Margin at 25.2% versus 25.6% (Bloomberg estimate: 24.11%).

• Net profit down 5% to Rs 885.4 crore versus Rs 934 crore (Bloomberg estimate: Rs 857 crore).

Nestle said prices of key commodities remained volatile. Coffee prices continued to be firm, milk prices rose with the onset of summer, and cocoa prices—though down 22.7%—remained historically high at $7,968.18 per metric ton, according to Bloomberg data. Edible oil prices, however, were said to be stable.

Sales growth in the quarter was supported by improved volume growth, with e-commerce now contributing 8.5% to domestic sales.

• The company reiterated that it will continue to execute its investment plan of approximately Rs 6,500 crore between 2020 and 2025 to develop new capabilities and capacity.

• Double-digit growth in beverages and confectionery.

• Powdered and liquid beverages were the top contributors in financial year 2025.

• Nescafé gained market share and added 5.1 million households to the coffee category

• Milk products and nutrition segment saw growth backed by new product launches.

• Petcare business posted high double-digit growth—its best since integration into India operations.

• E-commerce business was strengthened through availability and specialised forward packs.

• Organised trade saw broad-based growth, led by store expansion.

• Out-of-home consumption accelerated, supported by deeper channel penetration and premium offerings.

• Export footprint expanded to Maldives and Papua New Guinea; Maggi noodles launched in new markets across the Middle East and South Africa.