Tiwary said the company remains focused on driving consumption through higher volumes, particularly in categories with low penetration, even as input costs and macro uncertainties persist. “We will prioritise volume-led growth, especially in categories with low penetration,” he said, adding that cost efficiencies will be the first lever to protect margins before any pricing actions are considered.
The maker of Maggi noodles and KitKat chocolates has seen broad-based growth across its portfolio, with Tiwary highlighting that all businesses have delivered strong volume expansion over the past two quarters. He described the growth as “quite secular”, led by strong performance in confectionery and culinary segments, alongside emerging businesses such as Purina and Nespresso, which are growing at high double-digit rates.
However, the company is turning cautious on overall market demand. Tiwary noted that recent data points indicate a slowdown in category growth. “February and March data… suggest that markets are slowing down,” he said, pointing to evolving consumer sentiment and the need to closely monitor demand trends in the coming months.
On the cost front, Nestlé India is facing a mixed commodity environment. While coffee prices have softened from last year’s highs, cocoa has turned volatile again, and key inputs such as milk, wheat and palm oil are seeing upward pressure. Rising packaging, freight and logistics costs, along with geopolitical tensions, are adding to the uncertainty. “We will need more clarity to determine how much can be absorbed through efficiencies and how much may need to be passed on through pricing,” Tiwary said.
Despite these pressures, the company has not undertaken any broad-based price hikes so far. Tiwary clarified that pricing actions have remained limited and tactical. “There has been no broad-based price hike in our portfolio so far,” he said.
Nestlé India also continues to see long-term potential in its newer verticals. Tiwary described Nespresso, Purina and the B2B Nestlé Professional business as “green shoots”, noting strong consumer traction and sustained high growth. He expects these businesses to scale up significantly over the next five to ten years.
The company’s strategy is supported by structural tailwinds such as improving rural demand and penetration-led growth in categories like coffee and instant noodles. At the same time, segments such as dairy and nutrition are witnessing relatively slower growth due to supply dynamics and already high penetration levels.
The commentary comes after Nestlé India reported a strong performance for the March quarter. Net profit rose 26% year-on-year to ₹1,114 crore, ahead of market estimates. Revenue grew 22.6% to ₹6,748 crore, while EBITDA increased 27.6% to ₹1,773 crore. Margins expanded by 110 basis points to 26.3%, defying expectations of contraction.
Even as near-term headwinds remain, Tiwary said the company is confident of outperforming the market. He emphasised that disciplined execution and sustained brand investments will continue to drive growth.
The Delhi headquartered company currently has a market capitalisation of ₹ 1,40,738.02 crore and has delivered returns of around 15% over the past 6 months.
Also Read | Nestle India Q4 Results: Stock surges to record high after earnings beat led by double-digit volume growthBelow is the verbatim transcript of the interview.Q: What are the key reasons behind the strong growth, and more importantly, what lies ahead as we move through a volatile raw material environment?
Tiwary: Some of the categories are doing much better. We have seen stupendous growth in confectionery and our culinary business, which is Maggi. The good news is that, over the last two quarters, all our businesses have reported strong volume growth. So the growth is quite secular. Of course, there are new businesses like Purina and Nestle Professional which are growing at very high double digits, but that is also the nature of those businesses. We are happy with the secular growth across categories going forward. This growth should also be seen in light of some of the changes the government made in terms of GST and income tax last year. Going forward, there are some headwinds, such as the geopolitical situation and monsoon outlook. However, as far as inputs are concerned, we will continue to focus on what is driving growth, which is disciplined execution and investment behind our brands.
Q: Despite the headwinds ahead, you have earlier highlighted tailwinds such as faster rural growth and higher penetration-led growth. If we look at the full year, revenue growth was close to 15%. Do you expect something similar in FY27?
Tiwary: At the beginning of the year, my prediction was that FY26 would be a very strong year, driven more by volume growth than price growth. Things have changed. As far as the top line is concerned, the team and I are confident that our growth will be market-beating and that we will gain share. However, the market momentum in terms of category growth is something we need to watch, because February and March data, as per Nielsen, suggest that markets are slowing down. There are also cost pressures and evolving consumer sentiment, which we will understand better by the end of the second quarter of this calendar year. What I feel confident about is that our brand growth will be ahead of category growth.
Q: Let’s talk about commodity prices. You mentioned moderation in coffee and cocoa, but cocoa seems to be rising again, along with packaging and other costs. How should one look at margins after a strong fourth quarter?
Tiwary: Let me start with commodities and then move to other pressures, including the West Asia situation. Coffee, which was at record highs last year, has softened, which is positive for us. Cocoa has been mixed — we saw some softness and now some hardening. The two commodities we highlighted in the results are milk and wheat, where we are seeing some pressure, along with palm kernel oil due to the global situation. If it were not for the West Asia situation, I would say it would have been a fairly balanced commodity environment, something the team is resilient enough to manage through cost optimisation and savings. However, the added uncertainty, rising packaging costs, and higher freight and logistics expenses are creating headwinds. We will need more clarity to determine how much can be absorbed through efficiencies and how much may need to be passed on through pricing.
Q: Was there any price pass-through in the fourth quarter?
Tiwary: No, nothing out of the ordinary. We always have some price changes across packs, but despite the impact of West Asia and other factors, there has been no broad-based price hike in our portfolio so far.
Q: What about Nespresso, pet care, and your B2B business? These were highlighted as growth drivers. Where do they stand in terms of contribution, and how do you see them evolving?
Tiwary: I often refer to them as the “green shoots” of the business because they are still small in terms of contribution. However, we are delighted with the consumer feedback and ratings across all three. For Nespresso, we started with one boutique, have now expanded to a second, and will soon launch in Mumbai. The response has been excellent, including for limited-edition offerings. In Purina, especially the cat range such as Felix and Friskies, performance has been strong, though the footprint is currently limited to select cities, e-commerce and modern trade. Nestlé Professional, our B2B business, is more established and has strong traction among chefs, out-of-home channels, and vending solutions, with ongoing innovation. All three businesses are growing at very high double-digit rates, and we expect this trajectory to continue for the next five to ten years.
Q: Are there any category-specific headwinds? Growth in milk and nutrition seems relatively slower.
Tiwary: It is important to look at category penetration. For example, coffee penetration continues to rise as consumers shift from tea, providing a natural tailwind. In culinary, Maggi’s urban monthly penetration is around 25%, leaving significant headroom. Nutrition is slightly different. On the dairy side, milk supply dynamics have influenced consumption. In infant nutrition, penetration is already relatively high. So these categories are not directly comparable with products like Maggi or KitKat. That said, over the last couple of quarters, we have been pleased with the growth in this part of the portfolio.
Q: Final question — you had indicated a margin band of 22–24%. Are you confident of maintaining that on a full-year basis, along with double-digit growth in FY27? How much of that growth would be volume-led versus price-led?
Tiwary: I will avoid giving forward-looking numbers. What I have consistently said over the past three quarters is that we will prioritise volume-led growth, especially in categories with low penetration. Our first response to commodity pressures and market uncertainty will be cost efficiency. One of the things I am most proud of is the disciplined execution by the team, which is driving consistent results. We will continue to focus on that. That said, the mix between volume and price contribution will evolve this year compared to where we started, but we remain confident of delivering market-beating growth as an organisation.
