Shares of Nestle India Ltd. took a nosedive on Thursday, plunging by 5.59% following disappointing quarterly results for the first quarter of FY26. Investors were left unimpressed as the company failed to meet profit and margin expectations, despite a slight uptick in revenue.
Disappointing Performance:
Nestle India Ltd., a prominent FMCG company, recorded a standalone net profit of Rs 659.2 crore for the period spanning April to June, marking an 11.7% decrease from the Rs 746.6 crore reported in the corresponding quarter last year. This figure fell well short of the Bloomberg-tracked consensus estimate of Rs 751 crore. Meanwhile, the revenue for the quarter clocked in at Rs 5,096 crore, showing a 5.9% increase from the previous year but falling slightly below the projected figure of Rs 5,103 crore.
Operational Setback:
The operational front also presented a gloomy picture. The company’s Ebitda shrunk by 1.3% to Rs 1,100.2 crore, significantly lower than the anticipated Rs 1,181 crore, while the operating margins dwindled to 21.6% from 23.1% compared to twelve months ago. Nestle attributed this margin erosion to escalating commodity prices and increased operational and financial expenses, which overshadowed the benefits derived from revenue growth.
