Nestle India Q4 Preview: Profit may rise 17%; margins seen under pressure

Nestle India Q4 Results Preview: Nestle India will announce its financial results for the fourth quarter of FY25 on April 24. The company’s board will meet on the same day to consider recommending a final dividend for the financial year. If approved, the dividend will be given to shareholders at the next Annual General Meeting. The company usually declares its results during market hours, but the exact timing for this announcement has not been specified.

Trading window shut ahead of earnings

In line with rules set by the Securities and Exchange Board of India, the trading window for designated employees and insiders has been closed from April 1 to April 26, 2025. This is a standard practice to prevent trading based on unpublished price-sensitive information.

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Q4 preview: steady growth expected, margins may soften

According to Zee Business research, Nestle India is likely to report steady growth in the March quarter. Revenue is expected to come in at around Rs 6,210 crore, which would mean a rise of about 12.8 per cent compared to the same period last year. Operating profit is also seen growing, with EBITDA estimated at around Rs 1,545 crore, up about 11.2 per cent year-on-year. Net profit is likely to rise faster, with estimates suggesting a jump of nearly 16.8 per cent to around Rs 1,020 crore.

However, margins may see a slight decline. EBITDA margin is expected to come in at around 24.9 per cent, compared to 25.2 per cent a year ago. This possible pressure on margins is mainly due to higher input costs and some change in product mix. Analysts believe cost pressures have not fully eased and could continue to weigh on profitability in the near term.

Demand trends remain mixed

Growth in the quarter is expected to be supported by domestic volume expansion of around 8–10 per cent. The domestic business is likely to grow in the range of 13 per cent. Export performance is also expected to remain strong, with growth estimated at 13–15 per cent. The company may also benefit from the normalisation of earlier disruptions linked to GST-related changes.

Demand conditions, however, remain mixed. Rural demand is showing gradual signs of recovery, which is a positive for volume growth. At the same time, urban demand continues to remain somewhat subdued. Investors will closely track management commentary on consumption trends and raw material prices, as these will be key for future growth and margins.

Stock near highs ahead of results

Nestle India shares were trading at Rs 1,288.50, up Rs 31.10 or 2.47 per cent during the session. The stock is moving closer to its 52-week high of Rs 1,340.40. The company currently has a market capitalisation of around Rs 2.48 lakh crore, reflecting its strong position in the FMCG space.

Q3 performance and management commentary

In the previous quarter, Nestle India reported modest growth. Revenue rose 3.89 per cent year-on-year to Rs 4,779.7 crore, while net profit increased 4.94 per cent to Rs 688 crore. Chairman and Managing Director Suresh Narayanan had said that most product categories delivered healthy growth, supported by a mix of pricing and volume gains. He also noted that the quarter was impacted by food inflation and weaker urban consumption, although rural demand showed gradual improvement.

Key monitorables for investors

Going into the Q4 results, investors will focus on volume growth, margin movement and the company’s outlook on demand. Commentary on input costs and pricing strategy will also be important, as these factors will shape earnings visibility in the coming quarters.