Nestlé India Q3 profit jumps 46% as tax cuts lift demand for Maggi, KitKat and packaged foods 

INDIA – Nestlé India has reported a 46% year-on-year rise in quarterly profit, supported by stronger demand for packaged food products such as Maggi noodles and KitKat chocolates, following income and consumption tax cuts that lifted consumer spending. 

The Indian arm of Swiss food group Nestlé said net profit increased to 10.18 billion rupees (US$110.77 million) for the third quarter ended December 31, compared with 6.96 billion rupees in the same period last year. 

Demand conditions in India have been gradually improving as inflation moderates and government-led tax reductions boost discretionary spending.

The measures have helped consumer goods companies recover from a prolonged slowdown in urban demand, which had been weighed down by weaker wage growth. 

Nestlé India’s third-quarter revenue rose nearly 19% to 56.67 billion rupees. The company said its KitKat and Munch chocolate brands recorded double-digit volume growth, driven by new product launches, expanded rural distribution and rising demand on quick-delivery platforms. 

“This performance demonstrates our resilience and adaptability in a competitive market,” said Manish Tiwary, chairman and managing director of Nestlé India. “The growth trajectory is a result of the passion and hard work of our teams, distributors and partners, backed by faster and sharper decision-making, supplemented by the positive momentum from GST rate rationalisation.” 

The company reported consolidated net sales growth of 18.6% to Rs 5,667 crore, compared with Rs 4,780 crore a year earlier. Nestlé India said the increase was led largely by volume growth, describing it as “the strongest in nearly five years”. 

Confectionery emerged as the fastest-growing product group during the quarter, posting “robust double-digit growth fuelled by strong underlying volume increases”. 

The company said this performance was supported by higher advertising expenditure, expansion of retail stores and a broader product portfolio. 

Powdered and liquid beverages recorded their 18th consecutive quarter of double-digit growth, while prepared dishes and cooking aids delivered strong double-digit value growth on the back of accelerated volumes.  

Milk products and nutrition posted mid-single-digit growth, and the pet food business achieved strong double-digit growth. 

Nestlé India said all sales channels, including e-commerce, general trade and quick commerce, delivered double-digit growth. Consumer-focused media and advertising spending increased 42% year-on-year during the quarter. 

In its commodity outlook, the company said milk prices remain firm and edible oil prices are elevated and expected to trade sideways in the first half of 2026.  

“The upcoming wheat harvest in April 2026 looks promising. Coffee prices have stabilised at lower levels than last year due to favourable crop yields in both Vietnam and India,” it said. 

“We will continue delivering high-quality products that resonate with our consumers,” Tiwary added. “We will move forward with focus, speed and impact, while driving operational excellence and long-term value with discipline and clarity.” 

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