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Nestle Share Price: Brokerages have upgraded their outlook on Nestle India following a robust Q4FY26 performance that delivered a clean sweep across revenue, profit and margin estimates. Strong double‑digit volume growth, record domestic sales, sharp operating leverage and all‑time high EBITDA margins have prompted analysts to raise earnings forecasts and recalibrate valuations higher, despite lingering risks from rising crude-linked input costs. With broad‑based growth across packaged foods, beverages, confectionery and pet food, coupled with aggressive brand investments and easing commodity pressures in coffee and cocoa, the Street now sees Nestle India entering a sustained premium growth phase, reflected in fresh target price hikes, peaking at Rs 1,640 by Nuvama on improved earnings visibility and compounding potential over the medium term.
Brokerages Turn Bullish On 5 Fcators
- Maintain Neutral with target price of Rs 1,400 versus Rs 1,350
- reported strong performance in 4QFY26, with revenue growing 23 per cent YoY
- Co experienced market share gains for most of its key segments, reflecting better execution efforts
- Wheat availability was also affected by unseasonal rains, which led to delayed harvests and lower quality output.
- Coffee prices continued to soften.
- Despite these factors, EBITDA margin expanded 60bp YoY to 26.3% (at an all-time high), led by cost efficiencies .
- Raise our EPS estimates by 4-5 per cent for FY27 and FY28
- Rising crude prices amid ongoing geopolitical tensions remain a key concern
- The brokerage models a compound annual growth rate (CAGR) of 12 per cent in revenue, 15 per cent in EBITDA (earnings before interest, tax, depreciation and amortisation) and 17 per cent in APAT (adjusted profit after tax) over the period FY26 to FY28 (estimated).
- The brokerage maintains ‘Buy’ with target price of Rs 1,640 (earlier Rs 1,595)
- Revenue grew 23 per cent YoY; EBITDA rose 28 per cent YoY driven leverage
- EBITDA margin expanded to 26.3 per cent, up 100bps YoY, 500bps QoQ
- Volume growth remained strong double-digit, above 9 per cent expectations
- Prepared dishes growth driven by Maggi, supported by new innovations
- Confectionery saw high double-digit growth from distribution, product launches
- Beverages growth driven by coffee penetration and premiumisation across segments
- Milk products showed steady growth despite elevated milk price pressures
- Pet food delivered high growth supported by innovation and wider reach
- Advertising spend increased 50 per cent YoY, supporting demand and market share
- Coffee prices declining; cocoa subdued; sugar stable aiding margin outlook
- Edible oil prices firm due to higher crude and biodiesel diversion
- El Niño risk remains for rural demand; exposure limited at 20 per cent
Goldman Sachs on Nestle India
- The brokerage maintains Neutral with target price of Rs 1,425 (increased from Rs 1,275)
- Revenue growth strong at 22.6 per cent YoY driven by volume and GST-led tailwinds
- Broad-based growth across segments with strength in low-price packs
- EBITDA margin improved despite higher A&P spends
- Quick commerce and e-commerce driving incremental growth
Morgan Stanley on Nestle India
- The brokerage maintain Equal-weight with target price of Rs 1,461 (increased from Rs 1370)
- Earnings estimates raised by 1–5 per cent for FY27–28
- Strong 4Q performance driving upgrade in growth outlook
- Revenue and earnings CAGR estimated at 12 per cent over FY26–29
Nestle India Q4FY26
Nestle India delivered strong Q4FY26 results, posting an across-the-board beat on revenues, margins and profitability. The company clocked robust double-digit growth across all key business segments and channels, supported by strong volume expansion, premiumisation, stepped-up advertising spends and continued innovation. Record-high domestic sales, expanding market share, healthy margin expansion and a favourable commodity backdrop reinforced confidence in the company’s earnings trajectory
Revenue at Rs 6,748 crore versus Rs 5,504 crore, up 22.6 per cent (est Rs 6,196)
EBITDA at Rs 1,772 crore versus Rs 1,388 crore, up 27.6 per cent (est Rs 1,498)
PAT at Rs 1,114 crore versus Rs 885 crore, up 25.8 per cent (est Rs 926)
EBITDA Margin at 26.3 per cent versus Rs 25.2 per cent, up 103 bps (est 24.1 per cent)
Out-of-Home (OOH) Business
Saw strong customer acquisition
New launches in NESCAFÉ Duo Gusto, introduced low- and zero-sugar beverage options
Recipe-led innovation in MAGGI Coconut Milk powder
Exports expanded to new markets like Maldives and Papua New Guinea
Export footprint now at 28 countries through 127 mn equivalent consumer units
Introduced NESCAFÉ Sunrise in the UAE, Saudi Arabia, Singapore and New Zealand
Started exporting NESCAFÉ Bulk to UAE for use in 3 in 1 for sale in GCC countries.
Expanded MAGGI MasalaAe-Magic seasoning mix in the UK, US and UAE
Launched the KITKAT range in Singapore
Introduced MILKMAID Doypack in Sri Lanka.
Coffee prices continue to trend lower, Cocoa prices subdued, sugar stable
Edible oil prices are firm and have moved higher in-line with global crude oil prices
Wheat has been affected by unseasonal rains in April
Milk prices have firmed and are expected to remain elevated
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
