Nestle India’s stock slid 2.25% to Rs 1,460 in Thursday’s trading, undoing part of the rally that followed its June quarter earnings. The drop placed the company among the top losers on the Nifty 50, while the Sensex fell 303.82 points to 76,451.23 and the Nifty 50 slipped 87.20 points to 23,909.05.
In its financial report, Nestle India reported a consolidated net profit of Rs 958.7 crore for the June quarter, a 48% rise year‑on‑year. Consolidated revenue from operations grew 25% to Rs 6,378.2 crore, and on a standalone basis, profit after tax increased 47.9% to Rs 975.1 crore, beating analyst estimates. Total sales rose 25.4% to Rs 6,363.3 crore, also surpassing expectations.
Chairman and Managing Director Manish Tiwary said the company’s strong quarter was driven by volume expansion and a 35.6% jump in exports, even amid geopolitical headwinds. He added that Nestle India accelerated cost savings, increased advertising spend by over 40% year‑on‑year, and delivered double‑digit growth across all four product groups and sales channels.
Nomura kept a Buy rating on the stock, setting a target price of Rs 1,675 and noting an upside of more than 12% from Wednesday’s closing price. The brokerage highlighted the third consecutive earnings beat, 25% year‑on‑year sales growth, and sharp margin expansion. It cautioned that growth may moderate from the second and third quarters of FY27 due to a higher base.
HSBC maintained a Hold rating with a target of Rs 1,480. The firm praised the 25% revenue growth that exceeded estimates and the encouraging recovery in the milk nutrition business, though it noted the improvement was partly aided by a favourable base. HSBC said the stock’s premium valuation justified its Hold stance.
Despite the robust earnings, Nestle India shares slipped, reflecting market sensitivity to broader index movements. Brokerages remain positive, but investors will watch for signs of growth moderation in the coming quarters.
The market reaction underscores the importance of balancing strong fundamentals with market sentiment when evaluating stock performance.