Mumbai — Shares of Nestle India fell as much as 9% during Thursday’s trading session despite the consumer goods giant reporting double-digit growth in quarterly profit and revenue that largely met market expectations.
The stock dropped to an intraday low of Rs 1,260 following the release of the company’s financial results for the quarter ended September 2026, as investors appeared disappointed with the earnings despite strong overall performance.
The decline came after a period of gains for Nestle India shares, which had risen nearly 6% in October and approximately 13% since the beginning of fiscal 2027 before Thursday’s selloff.
The stock reached a 52-week high of Rs 1,553 on August 7, 2026, and a 52-week low of Rs 1,159 on April 2.
Shares recovered some of their losses as trading progressed. By midday, the stock was trading approximately 4% lower at Rs 1,329, with about 5.41 million shares changing hands on the National Stock Exchange.
The decline contrasted with gains in the broader Indian stock market, where the benchmark Nifty index was up approximately 1.7% at 23,015 during midday trading.
Nestle India reported consolidated net profit of Rs 1,026.70 crore for the September quarter, an increase of 36.3% from Rs 753.20 crore in the corresponding period last year.
Revenue from operations climbed 20.5% year over year to Rs 6,782.17 crore, compared with Rs 5,630.23 crore a year earlier.
The company’s export business also recorded strong growth, with overseas sales increasing 22% to Rs 267.3 crore during the quarter.
Operating earnings improved significantly. Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 31% to Rs 1,615.48 crore, up from Rs 1,232.74 crore in the same quarter of the previous fiscal year.
However, operating costs also increased. Total expenses rose 17% to Rs 5,405.51 crore from Rs 4,620.63 crore a year earlier, primarily reflecting higher raw material consumption and other operating expenditures.
Despite the strong earnings performance, the sharp decline in Nestle India’s share price highlighted a disconnect between the company’s financial results and investors’ expectations following the stock’s recent gains. (Source: IANS)
