Nestle India reports Q2 profit up 36.30 percent while inflation tests Nestle India stock

Published on 10/16/2026 at 10:56 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Revenue rose 20.30 percent to INR 67.82 billion. Nestle India stock traded at INR 1,262.70 on October 16, 2026 versus its INR 1,159.40 low.

Profit growth and inflation risks

Nestle India reported 36.30 percent profit growth for the second quarter ended September 30, 2026.
The company posted a 23.80 percent EBITDA margin in the September quarter.
Macquarie cut its target to INR 1,570 from INR 1,575 on October 16, 2026.

Nestle India stock, FMCG, second quarter results, inflation risk, NSE, BSE Sensex, Illustration mit AI erstellt.

Nestle India reported a 36.30 percent increase in profit after tax to INR 10.27 billion for the second quarter ended September 30, 2026, according to the NSE. Revenue from operations rose 20.30 percent to INR 67.82 billion, while inflation emerged as the main risk for the next quarters.

Results show broad-based growth

Total sales reached INR 67.82 billion in the September quarter, up 20.50 percent from the year-earlier period. The company reported an EBITDA margin of 23.80 percent, compared with 21.80 percent a year earlier, while earnings per share rose to INR 5.32 from INR 3.90.

CNBC TV18 reported on October 15, 2026, that revenue matched expectations while the margin exceeded the poll estimate of 23.40 percent. Advertising and marketing spending increased 46.00 percent, adding to the debate over how much brand investment can be absorbed by operating leverage.

What does inflation mean for margins?

Management said food inflation and volatile commodity costs were key challenges in the September quarter. NDTV Profit reported on October 16, 2026, that Macquarie cut its target to INR 1,570 from INR 1,575 and Goldman Sachs cut its target to INR 1,475 from INR 1,575. Both houses retained Neutral ratings and cited possible moderation as the comparison base strengthens.

Macquarie also warned that higher inflation could pressure rural demand. The concern matters because the company delivered strong double-digit volume growth in the latest quarter, leaving future results dependent on the balance between pricing, volumes and costs.

Three dated developments

On July 22, 2026, Nestle India reported first-quarter revenue of INR 63.78 billion, up 25.20 percent year over year. On August 27, 2026, it agreed to acquire a 26.00 percent stake in Radiance KA Sunshine Seven Private Limited for a renewable-energy project. On October 15, 2026, the board approved second-quarter results with profit after tax of INR 10.27 billion and sales growth of 20.50 percent, according to the NSE.

Analysts lower targets

Moneycontrol reported on October 16, 2026, that Prabhudas Lilladher maintained an Accumulate rating and a target of INR 1,526, lowered from INR 1,514. The broker said revenue and EBITDA growth could moderate in the second half of fiscal year 2026-27 as the base normalizes.

Stock valuation remains elevated

Nestle India was trading at INR 1,262.70 on the NSE at 2:25 p.m. IST on October 16, 2026. The finance data snapshot put market capitalization at INR 2.4 trillion and the 52-week range at INR 1,159.40 to INR 1,553.00, keeping the quotation 18.68 percent above its yearly low.