Shares of Nestle India Ltd continued their downward trend on Friday, falling for a second consecutive session after the FMCG major posted weaker-than-expected Q1 FY26 results. The stock slipped as much as 2 per cent to an intra-day low of Rs 2,269.85 on the BSE, extending its two-day loss to nearly 7 per cent.
As of 9:40 AM, Nestlé shares were trading 0.85 per cent lower at Rs 2,300.40, compared to a 0.35 per cent decline in the BSE Sensex, which stood at 81,898.93. The company’s market capitalisation was around Rs 2.22 lakh crore.
Nestle Q1FY26 Earnings Highlights
In Q1 FY26, Nestlé reported a 13 per cent year-on-year decline in consolidated net profit to Rs 646.6 crore, down from Rs 746.6 crore in Q1 FY25.
Revenue from operations rose 5.8 per cent to Rs 5,096 crore, up from Rs 4,814 crore in the same period last year.
EBITDA rose 60.3 per cent YoY to Rs 34.2 crore from Rs 21.3 crore. However, the EBITDA margin declined to 24.8 per cent from 26.5 per cent.
How to Trade Nestle: Brokerages Views
Nestle’s earnings miss led to mixed reactions from brokerages:
CLSA: Downgraded to Hold (from Accumulate), target cut to Rs 2,436 (from Rs 2,695)
Goldman Sachs: Maintained Neutral, target cut to Rs 2,300 (from Rs 2,335)
Citi: Maintained Buy, target reduced to Rs 2,750 (from Rs 2,800)
Macquarie: Maintained Neutral, target cut to Rs 2,250; Cited gross margin miss, higher other expenses, and sluggish recovery in milk and nutrition sales
Nomura: Maintained Buy, target cut to Rs 2,625
JP Morgan: Maintained Overweight, target at Rs 2,450
Jefferies: Maintained Hold, target revised to Rs 2,350
HSBC: Maintained Reduce, target lowered to Rs 2,180
Morgan Stanley: Maintained Underweight, target at Rs 2,081
Several analysts flagged concerns around weak volume growth, soft pricing in beverages due to low coffee prices, and a slower-than-expected recovery in the nutrition portfolio.
