Nestle India Q1 FY27 Results: Profit Up 48%, Sales Up 25%

Nestle India Limited reported Q1 FY27 results for the quarter ended 30 June 2026 on 22 July 2026. Q1 FY27 numbers (standalone): Revenue: Rs 6,378.18 crore, up 25.2% YoY Total sales: Rs 6,363.27 crore, up 25.4%, led by volume; domestic up 25.0%, exports up 35.6% EBITDA: Rs 1,538 crore, up 39.8% YoY; margin 24.2% vs 21.6% PAT: Rs 975.12 crore, up 47.9% YoY from Rs 659.23 crore; EPS Rs 5.06 All four product groups grew double digit. Ad spend rose over 40% alongside the margin expansion, with rural distribution and quick commerce driving reach. On inputs, management called cocoa, sugar and protein inflationary, coffee volatile near term, and edible oils, wheat and milk range bound. At the 4 August analyst meet, management flagged an FMCG consumption slowdown citing Nielsen IQ data, and the stock fell about 4.5 percent on it. Nestle India [$NESTLEIND][***** shares trade at Rs 1,441.84 (18 Aug 2026, 02:35 PM IST), up 34 percent over one year, about 6 percent below the 52-week high of Rs 1,541.38. Trailing P/E near 73. My view: the quarter earns the hold, the valuation blocks a fresh buy. Margin expansion with a 40 percent ad spend jump is real operating strength. But the 48 percent profit optics sit on a weak base: Q1 FY26 PAT had fallen 11.7 percent, so two-year earnings CAGR is closer to 14 percent. At 73x trailing, after a 34 percent one-year run, with management itself flagging slowing consumption, fresh money has no edge here. Levels: the 200-day zone near Rs 1,350 is where risk-reward turns interesting; a close above Rs 1,541 with demand improving changes the setup. Disclosure: Vijay Kumar Gupta, SEBI Registered Research Analyst, INH000020226, Vijay Gupta Advisory. SEBI registration and NISM certification do not guarantee performance or assure returns. Securities markets are subject to market risks. No holdings in the subject company.