Nestlé India Q2 FY26 preview: Brokerages expect up to 5% sales growth, flat EBITDA

FMCG major Nestlé India is set to announce its Q2 FY26 (July–September) results on October 16, with most brokerage firms expecting muted operating performance -- steady sales growth but largely flat EBITDA due to margin pressure.

Kotak Institutional Equities projects a 3.7% year-on-year (YoY) revenue growth led by a 3.25% rise in domestic sales and a 15% jump in exports. The brokerage estimates Nestlé’s revenue at Rs 5,292.2 crore, up from Rs 5,104 crore in the same quarter last year. However, it expects EBITDA margins to contract by 100 basis points (bps) YoY to 22%, mainly due to gross margin compression.

Emkay Global Financial Services anticipates a 5% growth in domestic sales, though primary sales could see a 2–3% impact. It expects export revenue to rise 5% YoY, with EBITDA likely growing 5% to Rs 1,227.6 crore.

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Similarly, Motilal Oswal Financial Services forecasts a 5.3% YoY rise in overall sales, supported by 5% domestic and 10% export growth. However, analysts caution that channel destocking following GST rate cuts may weigh on quarterly performance. Motilal expects the EBITDA margin to shrink by 100 bps to 22.2%.

Meanwhile, Nuvama Institutional Equities notes improving demand trends as the urban consumption slowdown eases. It estimates domestic sales to grow between 2.5–5.5% YoY, while exports are projected to rise 5–6% YoY (up 16% sequentially). Nuvama pegs consolidated EBITDA nearly flat YoY at Rs 1,167 crore, compared with Rs 1,167.7 crore in the year-ago period.

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Overall, brokerages expect steady topline growth for Nestlé India in Q2 FY26, tempered by margin pressure and channel adjustments post-GST rationalisation.