Manish Tiwary, Chairman and Managing Director of Nestlé India, announced that domestic sales experienced double-digit growth, primarily driven by volume increases. In this quarter, domestic sales reached INR 5,411 crore, marking a record high for any quarter. Tiwary expressed gratitude to employees for their dedication and noted that recent Goods and Services Tax (GST) amendments by the Indian government would positively impact consumers by enhancing affordability and stimulating consumption within the FMCG sector. Nestlé has been working closely with partners, distributors, and retailers to ensure the benefits of revised GST rates are passed to consumers across product lines.
The Confectionery segment showed strong volume-led double-digit growth, with KITKAT leading this expansion and continuing to gain market share, making India the second-largest KITKAT market for Nestlé globally. Growth in rural areas was aided by increased distribution of KITKAT. Both MUNCH and MILKYBAR also reported significant growth. The Powdered and Liquid Beverages group maintained high double-digit growth, with NESCAFÉ continuing to dominate the coffee market by increasing its household penetration. The Prepared Dishes and Cooking Aids group also saw robust double-digit value growth, with MAGGI Noodles achieving double-digit volume growth while Masala-ae-Magic performed well.
The Milk Products and Nutrition segment had mixed results, with some areas showing growth while others were less robust, though there are positive trends in certain segments. The Pet Food category reported high double-digit growth, achieving its best turnover since its integration into Nestlé India. The PURINA FRISKIES cat food brand introduced two new variants: Meaty Grills and Indoor Delights. Additionally, Nestlé Professional’s Out-of-Home (OOH) business exhibited strong double-digit growth, establishing itself as a key player and evolving its portfolio to meet operator needs. India is now the fastest-growing market for Nestlé’s OOH segment and ranks second in size in the Asia, Oceania, and Africa zone.
To meet consumer needs, the company employs an omni-channel approach, ensuring product availability in convenient locations and channels. E-commerce growth continued, bolstered by festive activities, new product launches like the KITKAT Delights Range and MAGGI Double Masala, and strategic partnerships with key platforms. Tiwary highlighted the recent addition of a new MAGGI Noodles production line at the Sanand factory in Gujarat as a commitment to local manufacturing. As Nestlé navigates a complex and dynamic environment, the focus remains on delivering high-quality products to consumers. The strategy of penetration-led volume growth aims to make products accessible across diverse regions and platforms, adapting to market dynamics.
The company is committed to investing in growth through enhanced brand and manufacturing capabilities, fostering bold and innovative products. Tiwary expressed gratitude to consumers, partners, shareholders, and the Board for their continued trust and support as he embarks on this significant journey. Financial highlights for Quarter 2, 2025-26 include total sales of INR 5630.2 crore, a total sales growth of 10.9%, and an EBITDA of 22.0%. Profit After Tax was reported at INR 753.2 crore, with an Earnings Per Share (EPS) of INR 3.90. Last year’s EPS was INR 3.88, excluding a one-time business divestiture impact.
In terms of business performance, e-commerce saw growth driven by quick commerce and festive initiatives, while organized trade benefited from strong category growth and new product launches. The Out of Home segment expanded its offerings, gaining traction among chefs and dessert operators with the ‘MADE WITH KITKAT’ range. Exports also experienced double-digit growth, particularly for MAGGI Noodles, with new NESCAFÉ products introduced in various international markets. Domestic performance across product groups showed notable advancements, including digital-first launches for MAGGI products and strong growth for MILKMAID and toddler milk products. The Confectionery segment saw increased rural penetration and premiumization, while the Powdered and Liquid Beverages category benefited from affordable pricing and premium offerings.
Looking ahead, milk prices may decrease post-festive season, and coffee prices are expected to stabilize. Cocoa supply and demand are projected to balance, while edible oil prices may rise due to tight global supply. The statement includes cautionary notes about the forward-looking nature of certain projections, indicating that actual results may vary significantly from expectations.