Nestle India share price rises 4% after Q2 results beat estimates, top Nifty gainer; brokerages positive on sales, volumes

Nestle India shares climbed over 4 percent on Thursday to Rs 1,270.50 after the FMCG major’s July-September quarter earnings beat Street estimates. The FMCG major's Q2 results prompted upbeat commentary from brokerages such as CLSA and Morgan Stanley, which highlighted strong volume-led sales growth and a better-than-expected performance on profitability.

At around 1 pm, Nestle India stock was the top gainers on the NSE Nifty 50 index. It has risen 17 percent so far this year, outperforming the broader Nifty FMCG index. The stock trades at a price-to-earnings (P/E) ratio of 78.8 and offers a dividend yield of 1.04 percent.

Nestle India's strong Q2 performance

The company’s standalone net profit fell 23.6 percent year-on-year to Rs 753.2 crore in the July-September quarter, but still exceeded Street expectations. Revenue from operations rose 10.6 percent to Rs 5,643.6 crore, driven by broad-based volume growth. Domestic sales grew 10.8 percent to Rs 5,411 crore -- its highest-ever quarterly tally -- while exports also recorded high double-digit growth. Nestle India’s EBITDA stood at 22 percent of sales.

Brokerages upbeat on Nestle India stock outlook

Brokerages responded positively to the Q2 performance. CLSA said Nestle delivered “a beat on sales and profitability,” with results higher than both its own and consensus estimates. The brokerage highlighted that domestic sales were driven by volumes and described the results as “strong, with better-than-expected profit in challenging times.”

Morgan Stanley also maintained a constructive stance, saying the company delivered a “good surprise on topline growth.” It expects Nestle India’s 12-month earnings per share (EPS) to move higher, supported by double-digit volume growth across all segments.

Outlook and strategy

Nestle India said it remains focused on expanding its presence across channels through an omni-channel approach, with e-commerce maintaining strong momentum. It added a new MAGGI noodles production line at its Sanand factory in Gujarat and plans to accelerate brand and manufacturing investments. The company expects milk prices to soften after the festive season and coffee prices to stabilise, while edible oil prices may stay firm globally.

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