Nestlé India Q3 FY25 Results: Revenue Rises 3.9% YoY to ₹4,780 Cr, Profit at ₹688 Cr
Nestle India Ltd: Overview
Nestle India Limited, a subsidiary of the Swiss multinational Nestle S.A., is one of the leading FMCG companies in India, specializing in nutrition, health, and wellness products. With a presence spanning over six decades, Nestle India has become synonymous with quality and innovation in the Indian food and beverage industry. The company operates in various product categories, including dairy, confectionery, beverages, instant foods, and infant nutrition, with some of the most recognized brands like Maggi, Nescafe, KitKat, and Cerelac. Nestle India’s extensive distribution network ensures that its products are widely available across urban and rural markets, supported by continuous investments in research, development, and local manufacturing. The company focuses on sustainable growth, innovation in nutritional science, and digital transformation to enhance consumer experience, making it a dominant player in the Indian FMCG sector. The Indian food and beverage industry is poised for robust growth, driven by rising disposable incomes, urbanization, and increasing health consciousness among consumers. The industry is expected to expand due to growing demand for packaged and ready-to-eat foods, fortified nutrition products, and plant-based alternatives. The e-commerce and digital retail boom further strengthens Nestle India’s market position, allowing it to reach a broader consumer base. Moreover, the Indian government’s emphasis on food safety regulations, nutrition awareness programs, and sustainable manufacturing practices aligns with Nestle’s long-term business strategy. The sector faces challenges such as raw material price volatility, changing consumer preferences, and regulatory complexities, but Nestle India continues to innovate with new product launches and sustainable packaging solutions.
Latest Stock News
In the third quarter, three out of four product groups demonstrated strong growth, driven by a combination of pricing and volume expansion. Key brands continued to perform well, which is encouraging despite the challenging market environment. Nestle’s powdered and liquid beverages segment was the largest growth driver, achieving high double-digit growth. Notably, the beverages retail segment surpassed ₹2000 crore, in revenue over the last twelve months, marking a significant milestone. The Out-of-Home business also reported strong double-digit growth, particularly in the food and beverage solutions portfolio. E-commerce maintained its rapid growth trajectory, posting high double-digit growth and contributing 9.1% to domestic sales. Additionally, new product launches since 2015 now account for approximately 7% of the company’s total sales.
This quarter was characterized by food inflation, a slowdown in urban consumption, and a gradual recovery in rural markets. Revenue is projected to grow by 4%, supported by a 2% increase in volume and price hikes. However, EBITDA margins are expected to decline by 189 basis points year-over-year to 22%, largely due to weaker gross margin performance. Key factors to monitor include the demand outlook in rural versus urban markets, competitive intensity, and raw material price trends. Nestle has also expanded its manufacturing capacity with a new production line for KitKat in Gujarat, which will have an annual capacity of 15,000 tons. The estimated capital expenditure for this unit is around ₹1,100 crore, which will be fully funded through internal accruals without the need for external borrowing.
Business Segments
- Prepared Dishes & Cooking Aids: This segment includes the flagship Maggi brand, which dominates the instant noodles and ready-to-cook meals category in India. Nestle India continues to innovate within this segment by introducing healthier variants, fortified products, and expanding its range of pasta, soups, and seasonings.
- Milk Products & Nutrition: This segment covers dairy-based products such as Nestle Milk, Every day, Nestle Slim Milk, and Cerelac, catering to consumers of all age groups. The company focuses on enhancing nutritional value, affordability, and sustainability in its dairy offerings, with an increasing shift towards fortified and protein-rich products.
- Beverages: Nestle India holds a strong market share in the beverages segment with brands like Nescafe, Nestea, and Milo. The rising demand for premium and instant coffee products, along with increasing consumer preference for healthy and functional beverages, has led to further innovations in this segment.
- Chocolate & Confectionery: Nestle’s stronghold in the confectionery segment includes globally popular brands like KitKat and Munch. The segment benefits from premiumization trends and increasing chocolate consumption in India, with the introduction of innovative flavours, formats, and healthier alternatives.
- Infant Nutrition: With brands like Lactogen and Nan Pro, Nestle India is a leading player in the infant nutrition market. The company focuses on providing scientifically advanced, safe, and highly nutritious products to support early-stage child development.
Subsidiary Information
- Nestle R&D Centre India Pvt Ltd: This subsidiary plays a crucial role in Nestle’s innovation pipeline, focusing on product development, quality enhancement, and customization for the Indian market. The R&D center collaborates with local agricultural and nutrition experts to ensure that Nestle India stays ahead in terms of product relevance and nutritional advancements.
- Nestle India Beverages Pvt Ltd: This subsidiary manages Nestle India’s beverage portfolio, primarily overseeing the Nescafe brand and its expansions into instant coffee, cold brews, and functional drinks. Given the rising demand for ready-to-drink and plant-based beverages, this division focuses on continuous innovation and premiumization.
- Nestle Nutrition India Pvt Ltd: Dedicated to infant and maternal nutrition, this subsidiary oversees the production, marketing, and distribution of brands like Cerelac, Lactogen, and Nan Pro. It is committed to scientific research in early nutrition, aiming to provide high-quality, fortified, and safe nutrition products for Indian consumers.
- Nestle Waters India Pvt Ltd: This subsidiary handles Nestle’s bottled water business, catering to the growing demand for premium and packaged drinking water solutions. While still a niche segment, Nestle Waters India is expanding into sustainable and functional hydration solutions, including flavoured and vitamin-enhanced waters.
- Nestle India Services Pvt Ltd: This subsidiary focuses on supply chain, logistics, and customer service operations, ensuring smooth production and efficient market distribution. It plays a vital role in digitizing Nestle India’s supply chain, reducing costs, and enhancing product availability across urban and rural markets.
Q3 FY25 Earnings
- Revenue of ₹4780 crore in Q3 FY25 up by 3.9% YoY from ₹4600 crore in Q3 FY24.
- EBITDA of ₹1077 crore in this quarter at a margin of 23% compared to 24% in Q3 FY24.
- Profit of ₹688 crore in this quarter compared to a ₹656 crore profit in Q3 FY24.
Financial Summary
| Amount in ₹ Cr | Q3 FY24 | Q3 FY25 | CY23 | FY24 |
| Revenue | 4600 | 4780 | 19126 | 24394 |
| Expenses | 3505 | 3703 | 14655 | 18581 |
| EBITDA | 1095 | 1077 | 4471 | 5813 |
| OPM | 24% | 23% | 23% | 24% |
| Other Income | -77 | 4 | 116 | 159 |
| Net Profit | 656 | 688 | 2999 | 3933 |
| NPM | 14.3% | 14.4% | 15.7% | 16.1% |
| EPS | 6.8 | 7.1 | 31.1 | 40.8 |