Nestle India's Out-of-Home business grows at double-digit rates in Q1 FY26

Nestlé India Limited on Thursday announced its first-quarter result for the fiscal year 2026. The maker of the Maggi brand posted a 13.3% decline in consolidated profit during the April-June quarter for the fiscal year 2026.

Nestlé India's Q1 FY26 profit stood at Rs 646.59 crore compared to Rs 746.6 crore in Q1 FY25. The FMCG firm's profit declined by 26% sequentially as well. In the last quarter (Q4 FY25), the KitKat manufacturer clocked a profit of Rs 873.46 crore.

On standalone basis, Nestlé India's profit stood at Rs 659 crore and total sales at Rs 5,074 crore in the same period.

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Nestlé India's revenue from operations increased in Q1 FY26 by 5.8% to Rs 5,096 crore, while the total income of the consumer goods company climbed to Rs 5100 crore.

The company's Out-of-Home (OOH) business grew at double-digit rates in Q1 FY26, emerging as "fastest-growing business across Beverages and Foods portfolio", the company stated.

Among the slew of reputed edible brands, Maggi, milk products, and liquid beverages registered double-digit growth during the quarter.

Maggi portfolio saw an uptick in consumption, driven by quick commerce and rural-urban demand.

Milkmaid delivered single-digit growth while liquid beverages, comprising NESCAFÉ Classic, NESCAFÉ Sunrise, and NESCAFÉ GOLD achieved double-digit growth in the same period.

According to Suresh Narayanan, Chairman and Managing Director, Nestlé India, the liquid beverages category emerged as one of the largest growth drivers in the quarter.

Moreover, Nestlé's chocolates category saw high double-digit growth, driven by robust underlying volume growth. KITKAT emerged as the largest growth driver, achieving double-digit growth, particularly in RUrban markets. Munch and Milkybar also regained momentum with double-digit growth.

Narayanan said, "Seven out of twelve top brands grew at double-digit", despite the impact of elevated consumption prices across the commodity portfolio.

The higher operations costs was fuelled by expansion in manufacturing in the last 7-8 months, Narayanan added.

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E-commerce has maintained its growth momentum, contributing to 12.5% of domestic sales, driven by Quick Commerce and new launches.

Narayanan, outgoing chairman of Nestlé expressed gratitude to the company, saying, "I am confident that Nestlé India will continue to thrive and soar to new heights - moving forward with greater focus and readiness for the future, fostering an inclusive and compassionate environment where every voice is valued. With much gratitude, it has truly been an honour and a privilege to serve you. I carry with me cherished memories of the decade gone by". Manish Tiwary will be succeeding Narayanan with effect from 1 August 2025. Narayanan will relinquish his office as Chairman and Managing Director of the Company upon his retirement on 31st July 2025.