Nestle India Share Price: Impact of Q1 Results and Future Outlook
Nestle India reported a 12% dip in net profit for Q1 2025 due to higher raw material costs. This article analyses Nestle India’s share price movement, earnings details, and market expectations ahead.
Table of Contents
Introduction
Nestle India, one of the country’s leading FMCG giants, announced its Q1 2025 results this week, reporting a 12% decline in net profit. Despite revenue growth, increasing input costs have impacted profitability. Investors are keen to know how these results influence Nestle India’s share price and what lies ahead for this defensive stock.
Nestle India Q1 2025 Results: Key Highlights
1. Revenue Performance
Revenue: ₹5,305 crore
Compared to ₹4,830 crore in the same quarter last year, revenue grew due to strong performance across product categories, including dairy, nutrition, and confectionery.
2. Net Profit
Net Profit: ₹698 crore
This is a 12% decline from last year’s ₹795 crore due to elevated raw material costs, especially in milk, grains, and cocoa.
3. Expenses
Total expenses: Rose 14.5% YoY to ₹4,244 crore.
Management cited global inflationary pressures as a key reason.
4. Dividend Declaration
Nestle India has not announced any interim dividend with Q1 results, maintaining focus on operational stability amidst input cost pressures.
Nestle India Share Price Reaction
Immediate Market Reaction
Following the earnings announcement:
Share price dipped by nearly 1.2% intraday on NSE, reflecting investor caution over margin pressures.
As of 24 July 2025, Nestle India shares traded at ₹2,367, with analysts suggesting limited downside given the company’s strong brand moat.
Analyst Views on Nestle India Share Price Target
Kotak Institutional Equities
Maintained “Add” rating, with a target of ₹2,500, citing robust long-term growth in health foods and beverages.
Motilal Oswal
Reiterated “Buy” with a target of ₹2,580.
Analysts expect margins to recover in coming quarters as raw material prices stabilise.
Factors Affecting Nestle India Share Price
1. Rising Raw Material Costs
Milk prices: Up 10% YoY
Cocoa prices: Record highs globally
2. Demand Trends
Despite higher prices, volume growth remains stable, indicating Nestle’s strong pricing power in categories like Maggi, KitKat, and Nescafé.
3. New Product Launches
Nestle India continues to innovate with products in nutrition, dairy-based beverages, and healthy snacking, which is positive for revenue diversification.
Nestle India Share Price Historical Performance
| Year | Closing Price (₹) | Annual Return (%) |
|---|---|---|
| 2021 | 1,780 | +12% |
| 2022 | 1,910 | +7% |
| 2023 | 2,120 | +11% |
| 2024 | 2,340 | +10% |
Future Outlook for Nestle India Share Price
Short Term: Market may remain cautious due to margin compression.
Medium Term: Recovery expected as global commodity prices ease.
Long Term: Structural growth in packaged foods and health nutrition positions Nestle India as a defensive compounder.
FAQ
1. Why did Nestle India’s profit decline this quarter?
Due to higher raw material costs, especially milk and cocoa, which compressed operating margins despite strong sales growth.
2. What is the current Nestle India share price?
As of 24 July 2025, it trades at approximately ₹2,367 per share on NSE.
3. Is Nestle India a good buy for long-term investors?
Yes, analysts maintain a positive long-term outlook, citing brand leadership, product innovation, and resilient demand.
4. What is Nestle India’s upcoming dividend plan?
There is no interim dividend announced for Q1 2025. Final dividend decisions will be taken closer to year-end.
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Conclusion
Nestle India’s Q1 results reveal short-term challenges due to raw material inflation but reaffirm its robust revenue growth trajectory. Investors looking for steady compounding in FMCG should continue tracking this stock, given its market leadership, pricing power, and strategic focus on innovation.
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