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Nestlé India boosts ad spend by 40% as Q1 profit rises 48%

Nestlé India boosts ad spend by 40% as Q1 profit rises 48%

Nestlé India reported a strong performance for the first quarter of FY27, posting a 48% year-on-year increase in consolidated net profit to ₹975 crore, driven by healthy volume growth, rising rural demand, robust exports and continued momentum in quick commerce. The FMCG major also significantly increased its brand investments, with advertising and promotional spends rising by more than 40% during the quarter.

Revenue from operations grew 25% year-on-year to ₹6,378 crore, reflecting strong consumer demand across key product categories. Sequentially, however, revenue declined 5.5% from the previous quarter.

Commenting on the performance, Manish Tiwary, Chairman and Managing Director, Nestlé India, said, “We delivered a strong quarter with sales growth of 25.4%, led by healthy volume growth. Consumer trust in our brands continues to drive our performance, while our focus on innovation, distribution and premiumisation is helping us strengthen our market position.”

The company reported 35.6% growth in exports, despite geopolitical challenges, while maintaining an EBITDA margin of 24.2%.

Nestlé India said rural markets remained a key growth engine, supported by expanded distribution and technology-led initiatives to improve retailer reach. The company also continued to strengthen its presence in quick commerce through platform-specific product packs, targeted media investments and participation in festive sales events.

Category-wise, the confectionery business posted another quarter of double-digit volume growth, with KitKat gaining market share. The beverages segment delivered its 20th consecutive quarter of double-digit growth, fuelled by rising coffee consumption and premiumisation.

The prepared dishes and cooking aids business also registered strong growth, supported by product innovation and expanding rural reach, while the pet food segment continued its double-digit growth trajectory, reflecting increasing consumer demand.

With sustained investments in brands, distribution and digital channels, Nestlé India remains focused on driving long-term growth across both urban and rural markets.

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