Rising food inflation, is a reality: Nestle India CMD

Manish Tiwary, Chairman and Managing Director, Nestlé India said rising inflation, particularly food inflation, is a reality and the company remains focused on mitigating commodity cost pressures.

Listen to this article

“We remain focused on navigating these external challenges through continuous innovation and renovation, sustained investments behind our brands, and an intensified focus on productivity and operational efficiencies to mitigate commodity cost pressures,” he said in a statement announcing the company’s second quarter 2026-2027 results.

The company’s net profit for the second quarter increased 36.3 per cent to Rs 1,026.8 crore, while total sales grew 20.5 per cent to Rs 6,782.2 crore from the comparable period last year.

The quarter saw a continuation of strong and broad-based growth across all product groups, Tiwary said.

Total sales growth was driven by robust, double-digit volume growth, he said.

“We continued to focus on efficiencies across our operations while significantly increasing investments behind our brands, with advertising and marketing spends up by 46 per cent. EBITDA margin remained healthy at 23.8 per cent,” Tiwary said.

Confectionery product group recorded another strong quarter of volume led double-digit growth. Powdered and Liquid Beverages product group delivered another quarter of strong, volume-led growth, the company said.

NESPRESSO continued its strong growth momentum in e-commerce and retail channels fuelled by continuing premiumization and building seasonal relevance in summer through iced coffee. Prepared Dishes and Cooking Aids product group delivered strong growth, it added.

Milk Products and Nutrition product group saw strong, broad-based growth with investments in brand building and portfolio optimisation. Pet Food business delivered strong double-digit growth, Nestle said.

E-commerce also continued its strong trajectory, driven by sustained shopper engagement, portfolio breadth, and focused channel-specific execution. General Trade delivered robust, double-digit growth across town classes, led by strong momentum in rural markets. Continued expansion of rural distribution touchpoints enhanced our direct reach and strengthened market coverage, it added.

Coffee and wheat are expected to remain range-bound, while sugar and edible oils have stabilized at elevated levels, Nestle said.

Cocoa remains volatile due to weather-driven crop concerns in key origins. Milk prices have strengthened seasonally but should ease as flush supplies arrive, the company said.

 

Latest

IDBI Bank, Digit Insurance, IIFL Capital to be combined

“We expect it will provide meaningful and significant benefits...

CM Vijay, Singapore Deputy PM to launch CapitaLand Data Centre

The facility, with an IT power capacity of 34...

Jio IPO price band fixed at Rs 1,065-1,119/shr

Jio IPO consists of a fresh issue of up...

Reliance forays into ready-to-drink dairy market

Priced at Rs 20, Joyland brings consumers in the...

Newsletter

Don't miss

IDBI Bank, Digit Insurance, IIFL Capital to be combined

“We expect it will provide meaningful and significant benefits...

CM Vijay, Singapore Deputy PM to launch CapitaLand Data Centre

The facility, with an IT power capacity of 34...

Jio IPO price band fixed at Rs 1,065-1,119/shr

Jio IPO consists of a fresh issue of up...

Reliance forays into ready-to-drink dairy market

Priced at Rs 20, Joyland brings consumers in the...

Jio IPO opens on 21 October

The IPO consists of a fresh issue of up...

IDBI Bank, Digit Insurance, IIFL Capital to be combined

“We expect it will provide meaningful and significant benefits to Indian consumers and businesses, as well as to IDBI Bank, Digit, IIFL Capital and...

CM Vijay, Singapore Deputy PM to launch CapitaLand Data Centre

The facility, with an IT power capacity of 34 MW, marks a significant addition to Tamil Nadu’s digital infrastructure and reinforces the state’s position...

Jio IPO price band fixed at Rs 1,065-1,119/shr

Jio IPO consists of a fresh issue of up to 27,00,00,000 equity share. At the upper end of the price band, the IPO is...