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Nestle India Reports Dip in Q4 FY25 Profit, Despite Revenue Growth

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Nestle India has recently announced its earnings for the fourth quarter of the fiscal year, ending on March 31, 2025. The results show a decline in profits, even though the company’s revenue grew. After the announcement, Nestle India’s shares fell slightly by 0.27%, trading at ₹2,426.80 on the NSE.

In the fourth quarter of FY25, Nestle India reported a profit of ₹873.46 crore. This is a decrease of 6.5% compared to the same period last year, when it earned ₹934.17 crore. Despite the drop in profit, the company saw an increase in revenue, which grew by 4.5% to ₹5,503.88 crore in Q4 FY25, up from ₹5,267.59 crore in the previous year. The total income for the quarter also increased to ₹5,512.32 crore, compared to ₹5,294.34 crore year-on-year. For the full year FY25, Nestle India reported a net profit of ₹3,314.5 crore and total sales of ₹20,077.5 crore. The Earnings Per Share (EPS) for the year stood at ₹34.38.

One of the key highlights of the quarter was strong domestic sales growth. Total sales in Q4 grew by 3.7%, while domestic sales increased by 4.2%. This was driven by broad-based growth in the domestic market. Notably, domestic sales surpassed ₹5,235 crore, the highest ever for any quarter, exceeding the level seen in the January-March 2024 period.

Nestle India also posted solid performance across key product categories in Q4 FY25, with double-digit growth in Beverages and Confectionery. For the full year, Powdered and Liquid Beverages saw high double-digit growth, while Confectionery, driven by KITKAT, showed high single-digit growth in both value and volume. MAGGI, in the Prepared Dishes and Cooking Aids category, returned to growth with mid-single-digit gains. The Petcare segment also posted its highest-ever growth since being integrated, with high double-digit growth.

On the cost side, Nestle India highlighted that commodity prices for coffee remained high, cocoa costs were still elevated despite recent corrections, and edible oil prices were stable. Milk prices also rose, as expected, due to the summer season.

Nestle India has continued its investment plans, with ₹6,500 crore being allocated between 2020 and 2025 to expand its capabilities and capacity. A new factory in Odisha, with an initial investment of around ₹900 crore for the first phase, is being set up to manufacture products for the Foods portfolio. This investment reflects the strong demand for Nestle products and supports the ‘Make in India’ initiative.

In a leadership update, the board of directors has recommended Manish Tiwary as the new Managing Director for a five-year term, starting on August 1, 2025. He will also take on the role of Key Managerial Personnel (Designate) from April 24, 2025.

Finally, the board has proposed a final dividend of ₹10 per equity share for the financial year 2024-25. This dividend will be paid on the entire issued and paid-up share capital, and the record date for the dividend is April 24, 2025.