Nestle India Profit Jumps 46% as Tax Cuts Boost Packaged Food Demand
Nestle India reported a sharp 46% rise in quarterly profit, driven by stronger demand for packaged foods such as Maggi noodles and KitKat chocolates, as recent consumption tax cuts encouraged higher spending. The Indian arm of Swiss food giant Nestle posted a net profit of ₹10.18 billion for the quarter ended December 31, up from ₹6.96 billion a year earlier. Investor sentiment strengthened following the results, with the company’s shares climbing as much as 4% to their highest level since October 2024.
Improving consumer demand, supported by easing inflation and government-led income and consumption tax reductions, helped revive discretionary spending after a prolonged urban slowdown linked to weak wage growth. Nestle India’s quarterly revenue rose nearly 19% to ₹56.67 billion, aided by double-digit volume growth in its confectionery portfolio, including KitKat and Munch. The company attributed the performance to new product launches, deeper rural market penetration, and rising sales through quick-commerce platforms.
Chairman and Managing Director Manish Tiwary said the company recorded its strongest volume growth in almost five years, supported by a broader market recovery and Nestle’s investments in production capacity and advertising. While some peers such as Godrej Consumer Products and ITC reported profit pressures from charges related to India’s new labour codes, Nestle India said its impact was minimal, similar to Gillette India, which noted its salary structures were already aligned with the updated rules.
Pic courtesy: google/ images are subject to copyright
