Nestlé India profit jumps, but inflation worries weigh on shares
The company reported higher second-quarter profit and sales, while management warned that rising food and commodity costs remain a challenge.
Key takeaways
- Nestlé India’s Q2 net profit rose 35.81% year over year to ₹1,000.61 crore.
- Management flagged inflation and higher commodity prices as challenges.
Nestlé India reported a 35.81% year-over-year rise in consolidated net profit to ₹1,000.61 crore for Q2FY27. Shares traded at ₹1,261.50, down 1.12% from the previous close, as of 9:26 UTC Friday.
Revenue from product sales rose 20.45% to ₹6,782.17 crore in the July-September quarter. The company said double-digit volume growth supported sales, while management warned that inflation and higher costs for packaging, edible oils and agricultural commodities posed challenges.
SBI Securities analyst Sunny Agrawal said rising food inflation could affect demand and pressure margins in the near term.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.