Nestlé India Limited (NSE:NESTLEIND) has approved its unaudited financial results for the quarter ended 30 June 2026 at a board meeting held on 22 July 2026. The company reported standalone total sales of Rs 60,730.5 crore for Q1 FY27, up 25.4% year-over-year, with net profit at Rs 9,751.2 crore. The board also approved a special dividend of Rs 2 per equity share on 3 July 2026, to be distributed from retained earnings.
Key Highlights
- Standalone total sales for Q1 FY27 reached Rs 60,730.5 crore, representing a 25.4% increase compared to Rs 48,600.1 crore in Q1 FY26.
- Domestic sales grew 25.0% year-on-year to Rs 60,730.5 crore in the quarter ended 30 June 2026.
- Standalone net profit for Q1 FY27 stood at Rs 9,751.2 crore, up from Rs 6,592.3 crore in the corresponding quarter of the previous year.
- Earnings per share for Q1 FY27 increased to Rs 5.06 compared to Rs 3.42 in Q1 FY26.
- The board declared a special dividend of Rs 2 per equity share (face value Rs 1) on 3 July 2026, representing a distribution of Rs 3,856.6 million from retained earnings.
- The special dividend and final dividend of Rs 5 per equity share for FY 2025-26 will be paid on and from 30 July 2026.
- Cost of materials consumed as a percentage of sales decreased from 45.0% to 42.9% in Q1 FY27, indicating improved cost management.
About the Company
Nestlé India Limited (NSE:NESTLEIND) is a subsidiary of Nestlé S.A. and operates as a major food and beverages manufacturer in India. The company manufactures and markets a diverse portfolio spanning instant noodles, breakfast cereals, coffee, milk products, culinary products, confectionery, and nutrition and health science products across retail and institutional channels. Nestlé India is headquartered in Gurugram, Haryana, and is listed on both the BSE (scrip code 500790) and NSE. The company operates manufacturing facilities across India and distributes its brands through multiple sales channels including modern trade, traditional retail, and e-commerce platforms. Its operations span the food sector as a single operating segment under Ind AS 108.
Announcement in Detail
The board of directors of Nestlé India convened on 22 July 2026 and approved the unaudited financial results for the first quarter ended 30 June 2026. The results have been prepared in accordance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Indian Accounting Standard (Ind AS) prescribed under the Companies Act, 2013. The statutory auditors, M/s. S. R. Batliboi & Co. LLP, Chartered Accountants, issued a limited review report confirming that nothing came to their attention to suggest the financial results contained material misstatements. The Audit Committee had reviewed the results at its meeting on 21 July 2026 prior to board approval.
On a standalone basis, Nestlé India's total income (revenue from operations and other income combined) for Q1 FY27 reached Rs 63,632.7 crore, comprising domestic sales of Rs 60,730.5 crore and export sales of Rs 2,902.2 crore. Profit before tax (PBT) for the quarter stood at Rs 13,243.9 crore, with profit after tax at Rs 9,751.2 crore. The company's earnings before interest, tax, depreciation and amortisation (EBITDA) for Q1 FY27 was calculated at Rs 15,381.3 crore. These standalone figures represent year-on-year comparisons with Q1 FY26, when standalone total sales stood at Rs 50,739.6 crore and net profit was Rs 6,592.3 crore.
In addition to financial results approval, the board acknowledged the special dividend decision made on 3 July 2026. The special dividend of Rs 2 per equity share (face value Rs 1) represents a distribution of Rs 3,856.6 million from the residual balance of Rs 8,374.3 million that was reclassified from the General Reserve and credited to Retained Earnings during the financial year ended 31 March 2024, in accordance with a Scheme of Arrangement sanctioned by the NCLT vide its order dated 15 September 2023, which became effective on 19 October 2023. This special dividend will be paid on and from 30 July 2026, along with the final dividend of Rs 5 per equity share for FY 2025-26 (amounting to Rs 9,641.6 million) as approved by shareholders at the Annual General Meeting held on 3 July 2026.
Impact on Investors
Shareholders will observe that the company's standalone net profit for Q1 FY27 increased by 48% to Rs 9,751.2 crore from Rs 6,592.3 crore in the prior-year quarter, while total sales grew by 25.4%. Earnings per share rose to Rs 5.06 from Rs 3.42, reflecting the combined effect of higher profitability and the existing equity base. The improvement in cost of materials consumed as a percentage of sales, from 45.0% to 42.9%, indicates improved operational efficiency and gross margin expansion during the quarter. The consolidated financial results, which include the impact of subsidiaries and associates, show similar growth trajectories; consolidated total income for Q1 FY27 was Rs 63,781.8 crore versus Rs 50,961.6 crore in Q1 FY26, with consolidated net profit at Rs 9,776.2 crore against Rs 6,582.9 crore in the comparable quarter.
The declaration of a special dividend of Rs 2 per share represents an additional cash distribution to shareholders beyond the ordinary final dividend of Rs 5 per share. Combined, shareholders will receive Rs 7 per equity share in dividends for the financial year ended 31 March 2026. Investors will note that this special dividend is funded from the specific reserve balance created pursuant to the NCLT-sanctioned Scheme of Arrangement, indicating that the distribution does not draw from current operational earnings. The timing of the dividend payment on 30 July 2026 provides liquidity to shareholders holding the stock on the record date that will be announced separately. The financial results reflect unaudited Q1 figures, which are subject to the limited review procedures performed by the statutory auditors under Standard on Review Engagements 2410.
Sector / Market Context
Nestlé India's Q1 FY27 performance reflects the broader food and beverages sector in India, which has shown resilience amid inflationary pressures and evolving consumer preferences. The company's 25.4% sales growth and improved gross margin dynamics align with sector trends favoring branded food manufacturers with pricing power and operational scale. India's packaged food segment has benefited from rising rural consumption, increased modern trade penetration, and growth in e-commerce channels. The company's earnings per share of Rs 5.06 for Q1 FY27 places it among the higher dividend-paying FMCG constituents in the BSE and NSE indices, reflecting its established cash generation capacity.
The dividend declaration policy, supported by the NCLT-sanctioned Scheme of Arrangement, demonstrates the company's approach to capital allocation and shareholder returns. The special dividend mechanism allows the company to distribute accumulated reserves while maintaining flexibility for growth investment and operational working capital. Nestlé India's consolidated EBITDA for Q1 FY27 at Rs 15,381.3 crore provides a measure of operating earnings power before financing and tax effects, relevant to investors assessing the company's ability to fund future growth and maintain dividend sustainability.