Nestle India Q2 FY27 Results (NSE: NESTLEIND)
Signal: Margin expansion
The read
The key inflection is a third consecutive quarter of YoY margin expansion: EBITDA margin reached 23.8%, up 190bps YoY as material cost intensity fell 240bps to 43.1%, while revenue growth accelerated to 20.5% and PAT grew 35.8%; sequential margin eased 30bps, so the durability of the input-cost tailwind remains the main watchpoint.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹6,782.17 Cr | 20.5% | 6.3% |
| EBIT | ₹1,235.26 Cr | 24.4% | |
| Net profit | ₹1,009.61 Cr | 35.8% | |
| EPS | ₹5.24 | 35.8% | |
| EBIT margin | 23.8% |
P&L walk
Revenue grew 20.5% YoY to ₹67,821.7 million, cost-material intensity fell 240bps to 43.1%, EBITDA grew 31.1% to ₹16,154.8 million and PAT rose 35.8% to ₹10,096.1 million; the main earnings driver was input-cost relief rather than sequential margin expansion.
Segments
The company reports a single Food operating segment; the ₹10,096.1 million consolidated PAT was ₹171.6 million below standalone PAT of ₹10,267.7 million because of the associate-related adjustment, but there is no segment-level drag to isolate.
Key positives
- Revenue from operations reached ₹67,821.7 million, up 20.5% YoY, with sales of products also up 20.5%, indicating broad value growth rather than a disclosed volume-led outcome.
- Cost of materials fell to 43.1% of sales from 45.5% YoY, expanding gross margin by 240bps and supporting EBITDA margin expansion of 190bps to 23.8%.
- EBITDA grew 31.1% YoY to ₹16,154.8 million versus revenue growth of 20.5%; employee benefits expense grew 5.8% YoY and depreciation grew 19.3% YoY, while total expenses grew 6.6%.
- PAT grew 35.8% to ₹10,096.1 million and EPS rose 35.8% to ₹5.24, with the two measures tracking cleanly.
- Net cash increased to ₹17,500.1 million at 30 September 2026, while six-month operating cash flow remained strong at ₹22,584.3 million.
Key concerns
- Sequential EBITDA margin declined 30bps from the immediately preceding quarter despite 6.3% sequential revenue growth, indicating that the input-cost benefit has not yet translated into further sequential margin expansion.
- Inventory increased 9.7% to ₹28,186.2 million from 31 March 2026, while six-month operating cash flow declined 2.6% YoY to ₹22,584.3 million.
- The filing does not disclose volume growth, so the 20.5% sales growth cannot be separated between volume and price/mix effects.
Research and educational content only. Not investment advice.