Nestle India Ltd. share price target

*over or under performance to benchmark index Nestle India Ltd, a subsidiary of Nestle S.A., is a food processing company, which primarily manufactures milk products along with other food products such as beverages and cereals. In Q1FY26, Nestle's revenue from operations grew 5.9% YoY to Rs. 5,096cr, led by...

Over the last three decades, Suresh Narayanan’s tenure (ten years) as CMD of Nestlé India has been one of the most celebrated.

In Q1FY26, Nestle India reported revenue largely in-line with our expectations, but earnings missed our estimates led by poor operational performance, lower other income and elevated depreciation and interest expenses.

We maintain our BUY rating on the stock.

Nestle India (Nestle) reported a 5.9% YoY revenue growth in 1QFY26, in line with our expectations. Domestic sales grew 5.5% YoY. We believe volume growth was in the low single digits.

Nestle’s Q1FY26 performance was weak as multiple headwinds led to decline in margins and double-digit decline in PAT.

Milk Products & Nutrition face pressure with muted growth We cut FY26/FY27 estimates by 4.4/6.8% given 1) pressure on Milk Products & Nutrition category (~38% of sales) due to muted growth in dairy and rising competitive intensity in low growth infant nutrition and 2) higher overheads /depreciation due to near doubling of gross block over last 3 years. NESTLE posted a weak quarter with 5.9% sales growth and flattish EBIDTA as...

Nescafe, Milkmaid, Masala-Ae-Magic, Petcare reported double-digit growth while KitKat reported high-single digit growth NESTLE saw a decent quarter with margin beat as calibrated price hikes neutralized the impact of high inflation in coffee and cocoa. Although demand remains weak, there seems QoQ improvement across segments. Although we expect gradual pick up in volume growth, high input cost inflation in coffee &...

We remain optimistic about the company's long-term prospects. With a 10% upside potential from the CMP, we maintain our BUY rating on the stock.

We retain REDUCE on Nestlé India and Mar-26E TP of Rs2,300, on 60x P/E. We see demand stress persisting in a major part of the portfolio, with demand for milk products continuing to see impact of healthy price hikes (amid inflation) and competitive pressure in prepared dishes.

4QFY25 sales were above our estimates, but EBITDA was in line. NEST continues to manage margins despite high cocoa/coffee inflation

Nestle’s Q4FY25 operational performance was subdued with revenue growth of 4% YoY on a high base of 9% and ~100 bps margin contraction primarily due to inflationary pressures in key raw materials such as coffee, edible oil and palm oil.

Nestle India (Nestle) reported a 4.5% YoY growth in total revenue in 4QFY25, in line with our estimate. Domestic sales grew only 4.2% YoY (vs. 9% growth in the previous eight quarters) given the macroeconomic headwinds.

We remain optimistic about the company's long-term prospects. With a 10% upside potential from the CMP, we maintain our BUY rating on the stock.

Nestlé sees strong growth potential in India, as its per capita packaged food consumption remains low. With 60 million people expected to join the middle- and high-income segments by 2030, rising affordability will boost demand.

The company's revenue stood at Rs. 47,797 Millions in Dec 24 quarter, showing a 3.9% increase compared to Rs. 46,004 Millions in the corresponding quarter of the previous year whereas there was a de growth of 6.4% on QoQ basis. In 9M FY25 basis, the company reported a revenue of Rs. 146,977 Millions a growth of 2.8% on annual basis.

NEST continues to manage profits amidst inflation in cocoa and coffee. Wheat and palm have also turned inflationary