Mumbai, July 24: FMCG major Nestle India on Thursday reported a 13.4 per cent year-on-year (YoY) decline in its consolidated net profit, which fell to Rs 646.5 crore in the first quarter of the current financial year (Q1 FY26) from Rs 746.6 crore in the same quarter of the previous year (Q1 FY25).

Despite the fall in profit, the FMCG giant recorded a 6 per cent YoY growth in its revenue from operations, according to its stock exchange filing.

The revenue rose to Rs 5,096 crore in the April-June 2025 quarter, compared to Rs 4,814 crore during the same period previous year.

The increase in revenue was mainly supported by a 5.5 per cent rise in domestic sales, which grew to Rs 4,860 crore from Rs 4,608 crore.

Export sales also performed well, rising 16 per cent YoY to Rs 214 crore from Rs 184.5 crore, it said in its filing.

The company’s total income for the quarter stood at Rs 5,100 crore, up 5 per cent from Rs 4,853 crore in the year-ago period.

Product sales reached Rs 5,074 crore, an improvement from Rs 4,793 crore in the same quarter previous year.

Other operating revenue increased slightly to Rs 22 crore, compared to Rs 21 crore in the previous year.

Suresh Narayanan, Chairman and Managing Director of Nestle India, said that the quarter was affected by high commodity prices and increased operational costs due to recent manufacturing expansions.

He also mentioned that borrowing from banks for short-term operational needs led to higher finance costs.

However, he added that prices of edible oil and cocoa have started to stabilise, coffee prices are falling, and milk prices are showing a modest increase.

Narayanan highlighted that the Powdered and Liquid Beverages category remained one of the top growth drivers for the company, delivering strong double-digit growth.

"Nescafe continued to lead the coffee market, gaining more market share. The brand focused on both affordable coffee packs and premium products like Nescafe Gold and Nescafe Roastery," he added.

(IANS)

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