NESTLEIND
Large CapNestle India Limited
Consumer
Nestle India Limited, a subsidiary of Nestlé S.A., is a leading Fast Moving Consumer Goods (FMCG) company in India with a 113-year legacy. It operates 9 factories, employs over 8,700 people, and reaches 5.3 million outlets. The company manufactures and markets a diverse portfolio including milk products, nutrition, prepared dishes, cooking aids, confectionery, and powdered/liquid beverages.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Mixed fundamentals, management trust is supportive, price trend is neutral, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Excellent · 85/100Rev +23% YoY · PAT +27% YoY · margin expansion · +19% QoQ
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹6,748 Cr | +22.6% | +19.1% |
| EBITDA | ₹1,768 Cr | +28.5% | +49.7% |
| Operating margin | 26.0% | +100 bps | +500 bps |
| PAT | ₹1,111 Cr | +27.3% | +11.3% |
| PAT margin | 16.5% | +60 bps | -115 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Nestle India reports 3% domestic sales growth for 9M FY2024-25, driven by pricing, while domestic volumes remained flat. Profit from operations declined by 3.7% for the same period, indicating margin pressure amidst persistent commodity inflation.
Despite strategic focus on premiumization, RUrban expansion, and digital initiatives, recent 9M results show flat volume growth and declining operating profit margins. Persistent commodity inflation and a slowdown in consumption, particularly in urban areas, are impacting profitability, putting the growth thesis under stress.
Contribution April – December 2024
Latest issuer-disclosed distribution across 4 reported categories.
Premiumization
nullAggressive premiumization is a key strategy, with premium products outpacing category growth and a 16% CAGR since 2015 for Nestlé's premium portfolio.
Out of Home (OOH) Market
nullThe OOH market is expected to double by 2030, with Nestlé expanding branded collaborations and offering curated menus and coffee solutions like NESPRESSO.
RUrban Expansion
nullAccelerating RUrban presence with 3.6 million total outlet reach, 7,405 towns covered, and increased distribution touchpoints and feet on street.
Innovation and New Products
nullApproximately 150 new products launched in the last 9 years, with new products contributing 6.5% to sales and an ambition to reach 10% in the medium term.
New Factory in Odisha
nullThe company is making significant investments in India, including a 10th factory in Odisha.
Confectionery Capacity Expansion
nullSanand is now the 3rd factory producing confectionery, contributing to a 35% capacity expansion for MAGGI, Coffee, and Chocolate since 2020.
Capital Expenditure
nullOver INR 5,500 crore has been spent till date on capacity expansion since 2020.
Rising India Opportunity
nullIndia's GDP ranking is #3 globally, with significant headroom for growth in per capita packaged food consumption compared to other Asian countries.
Increasing Consuming Class
nullThe number of high-income households is projected to increase significantly by 2030, expanding the consumer base for premium products.
Digital Adoption
nullAggressive digital outreach with 51% media spend on digital in 2024, leveraging 1.1 billion mobile users and 25 million grocery shoppers.
Slowdown in Consumption Growth
nullConsumption growth is slowing, particularly in urban areas, attributed to commodity inflation, urban unemployment, and tepid real wage growth.
Persistent Food Inflation
nullFood CPI continues to hurt consumption, with high prices persisting on select agri commodities despite moderating headline inflation.
Geopolitical Uncertainties
nullGeopolitics is identified as a challenge that could impact the business environment.
Commodity Price Volatility
nullUnprecedented commodity inflation across key inputs like milk, wheat, coffee, packaging, cocoa, and edible oils poses a risk to margins.
Evolving Consumer Trends
nullThe need to adapt to evolving consumer trends such as premiumization, rising health consciousness, and growth in the Out of Home segment presents a continuous challenge.
Competitive Intensity in RUrban
nullManaging increasing competitive intensity in RUrban markets requires continuous efforts in building awareness, offering value, and ensuring visibility.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
The company's financial year changed to April-March, making FY2023-24 a 15-month period, incomparable to previous 12-month years. Therefore, the most relevant comparison for recent performance is the sequential 9-month period (9M 2024-25 vs 9M 2023-24) to assess current momentum and trends.
Domestic Volume Growth
nullDomestic Volumes were flat at 411 '000 tonnes for 9M 2024-25 compared to 9M 2023-24.
Pricing vs. Volume Contribution
nullDomestic Sales grew 3% to INR 141 billion in 9M 2024-25 from INR 137 billion in 9M 2023-24, while volumes were flat, indicating growth was price-led.
Operating Profit Margin
nullProfit from operations declined to INR 20.9 billion (20.9% margin) in 9M 2024-25 from INR 21.7 billion (21.7% margin) in 9M 2023-24.
Rural/Urban Consumption Trends
nullF&B growth shows rural outpacing urban, with urban unemployment and tepid real wage growth cited as factors for slowdown in consumption.
Focus on Virtuous Circle Strategy
nullManagement emphasizes a 'Virtuous Circle' strategy centered on Purpose, People, Planet, Partnerships, and Performance to create value for all stakeholders.
Aggressive Premiumization and Core Growth
nullPremiumization and growing the core portfolio are highlighted as key strategies for future growth.
Digital Transformation and AI Integration
nullThe company is accelerating its digital transformation, integrating AI at various levels from task to workflow, and building capabilities for future-ready operations.
Sustainable Partnerships and Environment
nullCommitment to sustainable practices, including reducing GHG emissions, plastic neutrality, and responsible sourcing, alongside strong partnerships with suppliers and farmers.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Domestic Volume Growth | Flat (9M 2024-25 vs 9M 2023-24) | Signs of volume recovery, indicating improved consumer demand and effectiveness of RUrban/premiumization strategies. |
| Operating Profit Margin | 20.9% (9M 2024-25) | Stabilization or improvement in margins, reflecting successful cost efficiencies and pricing power amidst inflation. |
| New Product Sales Contribution | 6.5% of sales | Progress towards the stated ambition of 10% contribution, indicating successful innovation and market acceptance. |
| E-commerce Contribution | 8.5% of sales (2024) | Continued strong growth in e-commerce contribution, reflecting effective digital strategy and channel expansion. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
53NeutralSMA20 +11.0% / mo
Technical chart
NESTLEINDweekly · 3Y-38.6%Technical trend read
Bullish setupTrend is constructive — long-term trend unclear. RSI 55.
- SMA20 rising (~9.9% over last month) — short-term momentum positive.
- RSI(14) at 55 — rising, no extreme reading.
- MACD above signal but histogram contracting — bullish momentum cooling.
- 43% off 52W high · 30% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
FAIR VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Quality contributes 20/20 to the score.
- Balance sheet contributes 11/15 to the score.
Main drags
- Fair-value margin of safety is negative at -83.6%.
- Valuation is weaker at 0/30; verify the latest quarterly trend.
- Growth is weaker at 10/25; verify the latest quarterly trend.
Consumer valuation: PE/PEG and brand-quality premium
Consumer franchises can deserve higher multiples, but only when growth quality supports them.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 91st percentile of the scored universe and 92nd percentile within Consumer. No major sub-score weakness stands out.
High Trust Lite: Promoter holding is 62.8%.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Consumer: 92nd pctile, median 67 · Large: 77th pctile, median 74
31 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 62.8%.
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 1.6%.
- ▸Debt/equity is 0.09.
Trust risks
- ▸No major Trust Lite risk flags.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 79.10
- P/B
- 52.40
- EV/EBITDA
- 45.29
- Market Cap
- 269470.00Cr
Profitability
- ROE
- 74.30%
- ROCE
- 85.40%
- ROA
- 26.54%
- Dividend Y
- 0.86%
Growth (CAGR)
- Revenue 5Y
- 10.00%
- EPS 5Y
- 10.00%
- Revenue 3Y
- 8.00%
- EPS 3Y
- 8.00%
Balance Sheet
- Debt/Equity
- 0.09
- Interest Coverage
- 33.30×
- Altman Z
- 9.74
- Book Value
- 26.70
Cash Flow
- FCF Yield
- 1.64%
- FCF Positive Y
- 3/5
- OCF
- 5048.00 Cr
- EPS TTM
- 18.15
Shareholding
- Promoter Hold
- 62.76%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 76%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Consumer — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.