Nestle Q3 Preview: Revenue Seen Rising 11% on Volume Growth as Input Costs Limit Profit Upside
Nestlé India Market Brief: Q3 FY25 Update
**Financial Performance Overview**
Nestlé India reported modest growth for the quarter ending December 31, 2024 (Q3 FY25), falling short of double-digit revenue expectations. The company posted revenue from operations of **₹4,780 crore**, a **3.9%** increase year-on-year, compared to earlier projections of 10–11%.
**Profitability & Margins**
Net profit rose by approximately **6%** to **₹696 crore**, aligning with market estimates of steady but slow earnings expansion. Margins remain under pressure due to elevated prices for key raw materials, specifically **coffee** and **cocoa**, which reached historic highs.
**Segment Drivers**
* **Domestic Sales:** Grew by **3.3%**, driven largely by volume-led distribution rather than aggressive price hikes.
* **Exports:** Outperformed domestic figures with a robust **21%** surge.
* **Key Products:** *Nescafé*, *KitKat*, and *Maggi* led category growth, while the *Milk Products and Nutrition* segment faced softer demand.
* **Channels:** E-commerce continued its strong trajectory, delivering high double-digit growth.
**Stock & Corporate Action**
As of late January 2026, Nestlé India stock is trading in the **₹1,288 – ₹1,300** range. The board declared a second interim dividend of **₹14.25** per share, bringing the total interim dividend for the fiscal year to **₹17** per share.
**Strategic Outlook**
Management maintains a cautious stance on pricing to protect volume growth amid urban consumption slowdowns. The focus remains on penetration-led expansion in Tier-2 and Tier-3 markets, with rural demand showing early signs of gradual recovery.