Nestle India shares gained strong momentum on Thursday after the FMCG major’s July–September quarter results beat Street estimates, driving upbeat sentiment among investors and brokerages. The stock jumped over 4 percent to ₹1,270.50, becoming the top gainer on the NSE Nifty 50 index by mid-day.
Strong Q2 Results Fuel Investor Optimism
Nestle India’s Q2FY25 earnings exceeded expectations, even as headline profit numbers showed a year-on-year decline.
The company’s standalone net profit fell 23.6 percent year-on-year to ₹753.2 crore, yet it managed to outperform market forecasts.
Revenue from operations grew 10.6 percent to ₹5,643.6 crore, driven primarily by strong volume-led sales growth across key product categories.
Domestic sales rose 10.8 percent to ₹5,411 crore, marking the highest-ever quarterly sales tally for the company. Exports too reported high double-digit growth, showing sustained global demand momentum.
Nestle India’s EBITDA margin stood at 22 percent of sales, signaling healthy operational efficiency despite cost pressures in input commodities like milk and edible oils.
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Brokerages Maintain Positive Outlook
Brokerages turned upbeat following the quarterly performance. CLSA said Nestle India delivered “a beat on sales and profitability”, noting that results were above both its own and Street estimates.
The brokerage highlighted that domestic sales were primarily driven by volumes, adding that the company showed resilience and delivered better-than-expected profit in challenging conditions.
Similarly, Morgan Stanley maintained a constructive view on the stock, stating that Nestle India delivered a “good surprise on topline growth.”
It further noted that the company’s 12-month earnings per share (EPS) is likely to improve, supported by consistent double-digit volume growth across multiple product categories.
Brokerages see strong potential ahead for Nestle India, driven by its volume resilience, premium portfolio, and steady demand recovery.
Stock Performance and Valuation
At around 1 pm, Nestle India was the top gainer on the Nifty 50, reflecting renewed buying interest from investors.
The stock has already risen 17 percent so far in 2025, outperforming the broader Nifty FMCG index.
Currently, Nestle India trades at a price-to-earnings (P/E) ratio of 78.8 and offers a dividend yield of 1.04 percent, positioning it as one of the premium-valued FMCG counters on the exchange.
The sustained uptrend signals market confidence in the company’s long-term growth trajectory despite temporary profit moderation.
Outlook and Growth Strategy
Nestle India reiterated that it remains focused on strengthening its omni-channel presence, especially across e-commerce platforms where momentum continues to build.
The company has commissioned a new MAGGI noodles production line at its Sanand factory in Gujarat, aimed at scaling domestic capacity for its flagship brand.
It also plans to increase brand investments and enhance manufacturing capabilities across its key product categories.
On the cost front, Nestle India expects milk prices to soften after the festive season, while coffee prices may stabilise globally. However, the company anticipates that edible oil prices could remain firm due to global supply dynamics.
The FMCG giant remains committed to long-term brand investments, product innovation, and rural market penetration to sustain growth momentum.
Conclusion
Nestle India’s Q2 performance reinforced its strong fundamentals, with volume-driven revenue growth, stable margins, and positive broker outlooks. Despite a drop in net profit, the company’s operational resilience and forward guidance have boosted investor confidence.
With leading brokerages like CLSA and Morgan Stanley reaffirming their positive stance and the stock continuing to outperform the sector, Nestle India remains one of the most closely watched FMCG plays in the Indian market.
