Nestle India Q4 Profit Falls 5% Despite Record Domestic Sales; Stock Drops Over 2%

Nestle India reported a standalone net profit of Rs 885.4 crore for the fourth quarter of FY25, marking a decline of over 5% compared to the same period last year, when profit stood at Rs 934 crore. Despite the drop in earnings, sales improved during the quarter, with revenue from operations rising by 4.4% year-on-year to Rs 5,503.88 crore, up from Rs 5,267.6 crore.

Total and domestic sales grew by 3.7% and 4.2% respectively, with domestic sales reaching a record high of Rs 5,235 crore, supported by improved volume growth of 2%, said Nestlé India Chairman and Managing Director Suresh Narayanan.

“I am pleased to report that this quarter we witnessed double-digit growth in Beverages and Confectionery, with three out of four product groups delivering healthy growth. Our domestic sales crossed the Rs 5,235 crore mark, the highest ever in any quarter, supported by improving volume growth,” he noted.

The company also reported high double-digit growth in Powdered and Liquid Beverages, driven by NESCAFÉ’s expansion and increased household penetration. Confectionery, led by KITKAT, posted high single-digit growth, while Prepared Dishes and Cooking Aids, including MAGGI, showed mid-single-digit growth with a return to volume expansion.

Nestlé India announced a final dividend of Rs 10 per equity share for FY25, with the record date set for July 4. If approved, the dividend will be distributed starting July 24.

The company said that commodity prices for coffee remain firm, while cocoa costs, though slightly corrected, continue to be elevated. Edible oil prices have remained stable, and milk prices have seasonally firmed up with the onset of summer.

Following the earnings announcement, Nestlé India's shares fell over 2% to Rs 2,384.75. In early trade, the scrip was trading flat.

Hindustan Unilever Ltd. (HUL) shares also dropped sharply after its March quarter earnings fell short of margin expectations, with the company forecasting moderated gross margins in the near term. HUL reported a standalone net profit of Rs 2,493 crore, up 3.7% year-on-year, while revenue rose 2.1% to Rs 15,000 crore.

The FMCG major stated that EBITDA margins would remain within the 22–23% range as it ramps up investments in portfolio transformation and innovation. It expects earnings to gradually improve through FY26, with stronger performance expected in the first half.

HUL anticipates low single-digit price growth if commodity costs stay at current levels and plans to focus on driving volume-led competitive growth.