Highlights:

Net profit increased 6.2% YoY to ₹696 crore, in line with analysts’ estimates.
Consolidated net profit grew 5% to ₹688 crore.
Quarterly revenue rose 3.9% YoY to ₹4,780 crore, driven by strong beverage sales.
Declared second interim dividend of ₹14.25 per share, taking total interim dividend for FY25 to ₹17 per share.

Financial Performance & Market Expectations

Nestlé India met Street expectations in Q3 FY25, reporting a 6.2% year-on-year (YoY) rise in standalone net profit to ₹696 crore from ₹655.6 crore in the same quarter last year. Analysts had estimated a net profit of ₹696 crore, while revenue was expected to grow 3.9% to ₹4,781 crore from ₹4,600 crore last year.

Despite concerns over weak operational performance and margin pressures from high coffee and cocoa prices, Nestlé India managed to sustain profitability through strong sales of its powdered and liquid beverages, including the popular Nescafé brand.

Revenue Growth & Business Segments

Powdered & Liquid Beverages: The highest growth contributor, with double-digit expansion. Beverage retail business crossed ₹2,000 crore in annual sales.
Confectionery: Achieved high single-digit growth, with KITKAT recording double-digit growth.
Prepared Dishes & Cooking Aids: Saw high single-digit growth, led by MAGGI noodles.
Out-of-Home Business: Reported strong double-digit growth, driven by the food & beverage solutions portfolio.

Management Commentary

Suresh Narayanan, Chairman & MD of Nestlé India, stated:
“Three out of four product categories delivered healthy growth this quarter, driven by pricing and volume gains. Our key brands continue to perform well despite challenges such as food inflation and a moderation in urban consumption. However, we see gradual recovery in rural demand, which is encouraging.”

Dividend Declaration & Market Outlook

Nestlé India declared a second interim dividend of ₹14.25 per share for the October-December quarter, bringing the total interim dividend for FY25 to ₹17 per share.

With resilient sales in key product segments, strategic pricing, and improving rural demand, Nestlé India remains well-positioned for long-term growth, despite near-term inflationary pressures. Investors will watch closely for further signs of rural recovery and commodity price stabilization in the coming quarters.