---
title: "Nestle India stock gains today after Q2 beat; analysts flag margin pressure amid strong sales, easing costs"
description: "Nestle India shares rose 2.5% after Q2 FY26 results exceeded expectations, with a 10.6% revenue increase to Rs 5,643.6 crore despite a 23.6% profit decline to Rs 753.2 crore. Brokerages like CLSA prai"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/261547212.md"
published_at: "2025-10-17T04:00:42.000Z"
---

# Nestle India stock gains today after Q2 beat; analysts flag margin pressure amid strong sales, easing costs

> Nestle India shares rose 2.5% after Q2 FY26 results exceeded expectations, with a 10.6% revenue increase to Rs 5,643.6 crore despite a 23.6% profit decline to Rs 753.2 crore. Brokerages like CLSA praised the strong volume growth, while Morgan Stanley issued an underweight rating, citing margin pressures. HSBC maintained a hold rating, highlighting robust performance in key brands. The stock was trading at Rs 1,289, extending its year-to-date gain to over 17%.

Nestle India shares rose as much 2.5 percent in the opening trade on Friday, extending yesterday's gain, after the FMCG major’s Q2 FY26 results surpassed expectations on both sales and profitability. Brokerages including CLSA, Morgan Stanley, and HSBC acknowledged the company’s strong volume-led growth but differed in their outlook on margins and valuations.

Nestle India stock was trading at Rs 1,289 on NSE at 9:25 am, up 1 percent from the previous close. The stock had closed 3.5 percent higher on Thursday following the results, extending its year-to-date gain to over 17 percent. Nestle India Q2 results: steady sales momentum despite profit decline

Nestle India’s standalone net profit fell 23.6 percent year-on-year to Rs 753.2 crore, though still ahead of consensus estimates. Revenue from operations climbed 10.6 percent to Rs 5,643.6 crore, led by broad-based domestic demand. Domestic sales rose 10.8 percent to Rs 5,411 crore, the company’s highest-ever quarterly figure.The growth was powered by robust performances across key brands -- Maggi, KitKat, and Nescafe -- all posting double-digit volume gains. EBITDA margin stood at 22 percent of sales, while management noted that cost inflation was moderating and consumer demand remained firm.Brokerages divided on Nestle India stock valuation and margins

-   CLSA said the company “beat estimates on both sales and profitability,” citing strong volume-driven domestic growth and better-than-expected profit in challenging market conditions.
-   Morgan Stanley, while noting the earnings beat, shared an underweight call on Nestle India stock with a target price of Rs 1,010 per share. It pointed out that the gross margin fell 216 basis points year-on-year to 54.2 percent and EBITDA margin declined 124 basis points to 21.1 percent. The brokerage said management expects milk prices to soften and coffee prices to stabilise, though edible oil may remain inflationary.
-   HSBC has a hold rating with a target price of Rs 1,260 per share. It described the quarter as “strong with 11 percent year-on-year revenue growth in a disrupted quarter.” It noted that three of four product segments posted double-digit, volume-led growth, with Maggi being the standout surprise, and added that cost inflation pressures are easing.

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.