Nestle India’s shares saw sharp sell-off, tumbling 8.87 per cent to the day’s low of Rs 1,260.50 on the NSE as soon as the company reported its earnings for the second quarter of the current financial year (Q2FY27). The stock came off the day’s high to trade at Rs 1,306.50, but still 5.55 per cent lower. The fall in the stock price came despite reporting a strong quarterly result.
The FMCG major recorded a jump of 36.4 per cent year-on-year in net profit to Rs 1,027 crore for the September quarter of financial year 2026-27, compared with Rs 753 crore in the same quarter a year back. Its revenue from operations surged 20.3 per cent YoY to Rs 6,788 crore during the same time frame.
On the operating front, Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) rose 30.6 per cent YoY to Rs 1,615 crore from Rs 1,237 crore. The EBITDA margin expanded to 23.8 per cent from 21.9 per cent in the same quarter a year ago. The company’s domestic sales increased by 20.4 per cent for the reporting quarter.
Nestlé India’s chairman and managing director Manish Tiwary said that the company recorded double-digit volume growth in Q2 FY27, with broad-based growth across product groups, while focusing on innovation, brand investments and operational efficiency amid rising food inflation and commodity cost pressures.
Also, volumes across segments barring Milk and Nutrition were expected to be in double-digits – happened only for Confectionery and Pet Foods, not for Powdered and Liquid Beverages and Prepared Dishes and Cooking Aids.
Plus, rising inflation is a reality, especially food inflation. The company said Coffee and wheat prices to remain range bound. Sugar and edible oils have stabilized at elevated levels, and Cocoa remains volatile.
This quarter has formed a high base for the coming quarters and next year.
On the valuation front, Nestle India trades at a P/E of 67.2x against Nifty FMCG average of 31.4x.
Nestle India share price performance
The share price of Nestle India has fallen 2.2 per cent in the last five trading sessions. The stock has changed a little in the past one month. However, the FMCG counter has given a return of 11 per cent over the previous 12 months.
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