Nestlé India boosts ad spends 42% in Q3 FY26, profit jumps to Rs 998 crore

Nestlé India reported a 45% year-on-year rise in consolidated net profit for the third quarter of FY2026, driven by strong volume growth, higher advertising spends and a recovery in demand following GST-related benefits.

The maker of Maggi and KitKat posted a net profit of Rs 998 crore in Q3 FY26, compared with Rs 688 crore in the same quarter last year. On a sequential basis, profit rose 34.3% from Rs 743 crore in Q2 FY26.

Revenue from operations increased 18.5% year-on-year to Rs 5,667 crore, up from Rs 4,779 crore in Q3 FY25. Total income for the quarter stood at Rs 5,678 crore.

Expenses rose sharply during the quarter, climbing to Rs 4,667 crore from Rs 3,861 crore a year earlier. Cost of materials consumed accounted for the largest share at Rs 2,464 crore, while employee benefit expenses stood at Rs 590 crore.

Manish Tiwary, chairman and managing director of Nestlé India, said the company recorded its highest-ever quarterly turnover of Rs 5,643.5 crore and its strongest volume growth in nearly five years. He attributed the performance to strategic investments in capacity expansion and brand building, supported by a market recovery following GST benefits.

Nestlé India increased its consumer-focused media and advertising spends by 42% year-on-year during the quarter. The company reported an Ebitda margin of 21.3%.

Among categories, confectionery emerged as the fastest-growing product group, posting robust double-digit growth on the back of strong volume expansion. The growth was supported by higher advertising investments, wider product availability, expansion in store presence and accelerating rural demand, along with premiumisation and increased in-home consumption aided by quick commerce.

The powdered and liquid beverages segment recorded its 18th consecutive quarter of double-digit sell-out growth, while the pet food business also delivered strong double-digit growth.

Looking ahead, Tiwary said the company will continue to leverage automation and technology to simplify processes and drive efficiencies across operations.