Nestlé India Q1 sales rise 25.2% as EBITDA margin expands to 24.1%

Nestlé India reported Q1 sales of ₹6,378 crore, up 25.2% year-on-year, while EBITDA rose 40% to ₹1,538 crore and net profit grew 45%. Domestic sales increased 25%, supported by category momentum, higher advertising spend and Nespresso retail expansion.

— FiledWed, 22 Jul, 2026, 13:22 IST·First seen Wed, 22 Jul, 2026, 13:21 IST·Source CNBC-TV18 · Retail

What happened

Nestle India beat Q1 estimates as sales rose 25.2%, EBITDA climbed 40% and margins expanded to 24.1%. Domestic volume growth, broad category momentum and

Key facts

  • Q1 sales ₹6,378 crore, up 25.2% YoY
  • Domestic sales up 25% YoY
  • Exports up 35.6% YoY
  • EBITDA ₹1,538 crore, up 40% YoY
  • Net profit ₹975.1 crore, up 45% YoY
  • EBITDA margin 24.1%, up over 300 bps from 21.6%
  • Advertising spending up 40% YoY
  • Shares rose as much as 4%; traded 3% higher at ₹1,496
  • 52-week high ₹1,510
  • Stock up 15% YTD and 22.5% over 12 months

Why this matters

Nestlé India’s premium-coffee expansion and broad category momentum make adjacent premium beverage capabilities, retail partnerships and distribution-led opportunities strategically more relevant.

What to watch

  • Whether domestic sales growth remains above 20% after the comparison base becomes tougher.
  • Sequential gross-margin and EBITDA-margin performance, particularly whether the 24.1% margin can be maintained.
  • Advertising-and-promotion spending as a percentage of sales and management commentary on market-share outcomes.
  • Nespresso store openings, geographic expansion and evidence of repeat demand beyond initial launch markets.
  • Price versus volume/mix contribution to sales growth, including demand in smaller packs and mass-market categories.
  • Movements in coffee, cocoa, milk, edible oil, wheat and packaging costs, alongside any announced price actions.
  • Competitive activity from major packaged-food and beverage peers, especially promotions in coffee and convenience foods.
  • Increase advertising and consumer-promotion spend to convert category momentum into durable market-share gains.
  • Accelerate Nespresso retail expansion and premium coffee distribution across affluent urban catchments.
  • Use stronger profitability to expand distribution, launch premium and convenience-led SKUs, and improve in-store visibility.
  • Balance future price hikes with smaller packs, entry-price offerings and targeted promotions to protect volume growth.
  • Strengthen sourcing, hedging and productivity programs against volatile coffee, cocoa, dairy and packaging inputs.