Nestle India Shares Slide Despite 36% Profit Surge Amid Inflation Warnings

Nestle India shares drop as the company warns of food inflation and commodity costs, despite reporting a 36% profit jump in the September quarter.

Editorial Desk

October 15, 2026 One Min Read

POLICY WIRE — New Delhi, India — Nestle India reported a significant 36.4% year-on-year increase in standalone net profit, reaching Rs 1,027 crore for the quarter ending September 30, 2026. This performance marks a notable rise from the Rs 753 crore profit recorded during the same period in the previous fiscal year.

Despite the strong bottom-line growth, the company’s shares faced a sharp decline of up to 8.3% on Thursday. Investors reacted cautiously as management highlighted ongoing challenges regarding persistent food inflation and volatile commodity prices.

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Financial results for the second quarter show revenue from product sales climbed to Rs 6,782.17 crore, a 20.45% increase compared to the Rs 5,630.23 crore reported in the corresponding quarter of the prior year. revenue for the quarter reached INR 68,086 million, up from INR 56,491.5 million a year earlier.

The company’s growth was bolstered by resilient demand for core products, including Maggi instant noodles and Nescafe coffee. Additionally, EBITDA margins saw an improvement to 23.8%, supported by strategic advertising investments and expansion in rural markets.

Reporting by Policy-Wire (PW)

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