Nestle India Q4 Results: PAT jumps 26%, Revenue rises 23%; Rs 5 dividend announced

Nestle India reported a strong performance for the March 2026 quarter, with consolidated profit after tax rising 27.18 per cent year-on-year to Rs 1,110.9 crore, compared to Rs 873.46 crore in the same period last year.

Revenue, profit beat street estimates

On a standalone basis, revenue stood at Rs 6,748 crore, higher than market estimates of Rs 6,186 crore. Net profit came in at Rs 1,114 crore, also ahead of the estimated Rs 926 crore.

The company delivered strong operational performance, with EBITDA margin at 26.3 per cent during the quarter.

Earnings per share (EPS) rose to Rs 5.78, compared to Rs 4.59 in the year-ago period.

Dividend announcement

The board has recommended a final dividend of Rs 5 per equity share (face value Re 1 each) for FY26. The total payout for the financial year stands higher when combined with the first interim dividend of Rs 7 per share, which was paid in February 2026.

This takes the total dividend for FY26 to Rs 12 per equity share. The final dividend payout amounts to Rs 964.16 crore.

The record date is set as July 10.

Management highlights growth drivers

Commenting on the results, Chairman and Managing Director Manish Tiwary said the company delivered high double-digit growth and recorded its highest-ever domestic sales at Rs 6,445 crore.

“This performance was powered by double-digit volume growth, driven by over 50 per cent increase in advertising spends, whilst delivering a healthy EBITDA margin of 26.3 per cent. Total sales and domestic sales for the quarter increased by 23.4 per cent and 23.1 per cent, respectively. Encouragingly, all product groups contributed to this performance,” he said.

He added that penetration and premiumisation, along with disciplined resource allocation and strong execution, have been key growth drivers.

The company said its confectionery segment, led by brands such as KitKat, recorded high double-digit growth in both value and volume. The powdered and liquid beverages segment also saw strong growth, driven by higher coffee penetration and premiumisation.

Sequential recovery and lower exceptional impact

Sequentially, the company showed a strong rebound from the December quarter. Revenue rose around 19.0 per cent quarter-on-quarter, while EBITDA surged 47.5 per cent QoQ. Net profit increased 9.4 per cent QoQ, with margins expanding sharply from 21.3 per cent in Q3 to 26.3 per cent in Q4.

The March quarter included an exceptional charge of Rs 36.2 crore, mainly related to restructuring and labour costs. This was lower than Rs 156.9 crore in Q3, supporting the earnings recovery.

Cost pressures remain a monitorable

Despite strong growth, cost pressures persisted. Cost of materials consumed rose 17.0 per cent, while employee expenses increased 6.68 per cent. Finance costs rose 16.4 per cent.

Overall, total expenses increased 16.1 per cent year-on-year to Rs 18,706.1 crore, slightly higher than revenue growth, leading to some pressure on margins.

Cash position strengthens; debt reduced

A key highlight was the sharp improvement in the company’s cash position. Cash reserves rose significantly from Rs 76 crore to Rs 1,321 crore.

The company also repaid Rs 730 crore in short-term borrowings, effectively making it debt-free on the current side.

Commodity outlook mixed

The company flagged a mixed commodity outlook. Coffee and cocoa prices are trending lower due to improved supply. Sugar prices remain stable. However, edible oil prices have firmed up, tracking global crude oil trends.

Wheat output has been impacted by unseasonal rains, while milk prices have risen and are expected to stay elevated during the summer season.

Nestle India share price

Following the strong results, shares of Nestle India surged around 8 per cent to hit a fresh 52-week high of Rs 1,389.50 on the NSE.