Nestle India Limited FY2026 Annual Report
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Overview
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Detailed Analysis
Sentiment
Positive
Executive Summary
Nestle India FY2026: Revenue ₹23,154.6 Cr (vs ₹20,201.6 Cr YoY), PAT ₹3,544.6 Cr (vs ₹3,314.5 Cr YoY)
FY2026 Revenue from Operations rose to ₹23,154.6 Cr from ₹20,201.6 Cr in FY2025, alongside PAT increasing to ₹3,544.6 Cr from ₹3,314.5 Cr. Reported EPS increased to ₹18.38 from ₹17.19, supporting shareholder returns. Cash generation strengthened, enabling a higher year-end cash balance and materially lower borrowings. The company continued to widen distribution reach and expand exports while maintaining focus on governance and compliance matters highlighted by auditors.EBITDAp.31
₹5,306.1 Crvs ₹4,769.6 Cr in FY2025
Earnings per Share (Basic & Diluted)p.31
₹18.38vs ₹17.19 in FY2025
Tax Expensep.31
₹1,065.1 Crvs ₹1,133.0 Cr in FY2025
Net cash generated from operating activitiesp.120
₹5,047.6 Crvs ₹2,934.5 Cr in FY2025
Cash and cash equivalents (year-end)p.60
₹1,320.6 Cr as at 31-Mar-2026vs ₹76.2 Cr as at 31-Mar-2025
Total borrowings (year-end)p.80
₹24.4 Cr as at 31-Mar-2026vs ₹753.3 Cr as at 31-Mar-2025
Purchase of property, plant and equipment incl. CWIP (cash flow)p.62
-₹829.7 Cr in FY2026vs ₹
Inventories (year-end)p.60
₹2,569.2 Cr as at 31-Mar-2026vs ₹2,850.1 Cr as at 31-Mar-2025
Key Highlights
9
Rural distribution expanded to presence across approximately 216,000 villages, supporting deeper reach in non-urban markets in FY2026.
The company reported total sales of ₹23,071.5 Cr as per the Chairman and Managing Director’s statement for FY2026.
CRISIL assigned AAA for bank credit facilities and A1+ for short-term facility with a stable outlook, signalling strong credit quality.
A 1
Retail ONE scaled to 1,000 kiosks operational across India, indicating continued investment in alternative/assisted distribution formats.
Exports were expanded to 28 countries through 127 million equivalent consumer units, improving geographic diversification beyond domestic demand.
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Key Highlights
9
Rural distribution expanded to presence across approximately 216,000 villages, supporting deeper reach in non-urban markets in FY2026.
The company reported total sales of ₹23,071.5 Cr as per the Chairman and Managing Director’s statement for FY2026.
CRISIL assigned AAA for bank credit facilities and A1+ for short-term facility with a stable outlook, signalling strong credit quality.
A 1
Retail ONE scaled to 1,000 kiosks operational across India, indicating continued investment in alternative/assisted distribution formats.
Exports were expanded to 28 countries through 127 million equivalent consumer units, improving geographic diversification beyond domestic demand.
The Allotment Committee approved allotment of 96,41,57,160 bonus equity shares (face value ₹1 each) in the ratio of 1:1 on 11-Aug-2025.
The company achieved 100% renewable electricity during the year including through International Renewable Electricity Certificates (I-RECs).
Unclaimed dividend-related shares were transferred to IEPF during the year including 61,310, 16,720 and 99,360 equity shares linked to unpaid dividends from 2017/2018.
MD&A Insights
6
Exceptional items in FY2026 were (₹120.8 Cr), comprising writebacks of prior provisions and charges including ₹40.1 Cr restructuring cost and ₹41.4 Cr past service cost impact from New Labour Codes.
Water withdrawal increased to 2,759,410 kilolitres in FY2026 from 2,665,764 kilolitres in FY2025 while water withdrawal intensity improved to 10.43 kilolitres/million ₹ turnover from 11.16 kilolitres/million ₹.
Energy intensity per rupee of turnover improved to 18.86 GJ/million ₹ in FY2026 from 19.73 GJ/million ₹ in FY2025, indicating better energy efficiency per unit of revenue.
Lost Time Injury Frequency Rate (LTIFR) for employees rose to 0.51 per one million-person hours worked in FY2026 from 0.23 in the prior year, indicating a deterioration in safety outcomes.
Total training hours delivered were 164,000+ with average training hours per employee of 17.5 during FY2026, reflecting continued capability-building.
The company reported 8,680 employees in FY2026, providing scale context for operations and workforce management.
Guidance & Outlook
4
The Board recommended a final dividend of ₹5.00 per equity share amounting to ₹964.2 Cr for FY2026, subject to shareholder approval.
Members were requested to complete/update details by 10-Jul-2026 (Record Date) for TDS compliance on dividend distribution.
Voting rights will be in proportion to paid-up equity share capital as on the Cut-off Date of 26-Jun-2026.
The Cost Auditor M/s. Ramanath Iyer & Co. was approved for FY2026-27 at a remuneration of ₹2,64,000 plus reimbursement of out-of-pocket expenses and applicable taxes.
Risks & Concerns
5
Statutory Auditors identified provision for contingencies as a Key Audit Matter, specifically covering direct tax, indirect tax, claims and legal proceedings.
Trade payables increased to ₹2,966.7 Cr as at 31-Mar-2026 from ₹2,373.5 Cr as at 31-Mar-2025, which can indicate higher working-capital reliance on suppliers.
Employee safety risk increased as LTIFR for employees rose to 0.51 per one million-person hours worked in FY2026 from 0.23 in the prior year.
Plastic waste generated increased to 3,216 metric tonnes in FY2026 from 2,657 metric tonnes in FY2025, elevating packaging and compliance-related ESG scrutiny.
Total waste generated increased to 74,591 metric tonnes in FY2026 from 71,617 metric tonnes in FY2025, implying higher waste-management requirements.
AI-generated analysis. May contain inaccuracies — verify against original sources.