Nestlé India posts 25% Q1 revenue growth; Motilal Oswal keeps Neutral call

Nestlé India’s Q1 FY27 revenue rose 25% year-on-year, supported by domestic volumes, GST-led low-unit-price packs and 36% export growth. Motilal Oswal retained its Neutral rating and set a revised target price of Rs 1,525, citing elevated valuations and limited upside.

— Source publishedThu, 23 Jul, 2026, 07:18 IST·First seen Thu, 23 Jul, 2026, 08:52 IST·Source NDTV Profit

What happened

Nestle India reported 25% YoY Q1 FY27 revenue growth, led by domestic volumes and GST-supported low-unit-price products. Motilal Oswal retained its Neutral

Key facts

  • Q1 FY27 revenue growth: 25% YoY
  • Three-year revenue CAGR: 13%
  • Domestic revenue growth: 25% YoY versus 19% estimate
  • Base growth: 6%
  • Export revenue growth: 36% YoY
  • Revised target price: Rs 1,525
  • Valuation: 68x FY27E EPS
  • Valuation: 60x FY28E EPS

Why this matters

Nestlé India’s 36% export growth and success with low-unit-price packs underscore opportunities to scale value formats and international distribution partnerships.

What to watch

  • Domestic volume growth versus reported revenue growth, especially after the GST-led pack-size benefit begins to annualise.
  • Gross-margin and EBITDA-margin movement amid milk, coffee, cocoa, packaging and freight-cost changes.
  • Export growth durability and whether exports become a meaningful contributor to profit rather than only revenue.
  • Management guidance on price increases, promotional spending, rural demand and premium-category trends.
  • Consensus EPS revisions and target-price changes relative to the current valuation premium.
  • Market-share data in key categories including instant noodles, coffee, confectionery, nutrition and pet care.
  • Expand low-unit-price packs and regional distribution to convert affordability-led trial into repeat consumption.
  • Prioritise export markets and categories with stronger margins to prevent rapid sales growth from diluting profitability.
  • Increase advertising and trade spending selectively to defend share against domestic FMCG and multinational competitors targeting mass-premium consumers.
  • Use quarterly commentary on volume growth, pricing and commodity costs to demonstrate that growth is structural rather than a one-off tax or base effect.