Nestle India Stock Plunges Post Q2 Earnings

Nestle India's stock price experienced a sharp decline of 9% in mid-noon trading on Thursday, reaching an intraday low of ₹1,260 on the NSE, shortly after the company disclosed its second-quarter financial results. This downturn occurred despite the stock having gained nearly 6% earlier in October and 13% in the financial year 2026-27.

The company's Q2 net profit for the quarter ending September 2026 grew by 36.3% to ₹1,026.70 crore, a figure that aligned with analyst projections. Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) also saw a substantial increase of 31% year-on-year, amounting to ₹1,615.48 crore.

Sales for the quarter demonstrated strong growth, surging by 20.5% year-on-year to ₹6,782.17 crore. This performance was attributed to healthy volume growth, consistent demand, and a trend towards premiumization, with exports contributing 22% YoY growth.

However, total expenses rose by 17% year-on-year, driven primarily by increased costs for raw materials consumed and other operational expenditures. By 12:55 PM, the stock had recovered some losses, trading 4% lower at ₹1,329.