Nestle India Slides 5% Post Q1 Results: SEBI RA Flags Support Level, Valuation Concerns

Nestle India shares fell 5% on Thursday on the back of its June quarter (Q1 FY26) earnings. 

Q1 revenues rose 4.5% year-on-year (YoY) to ₹5,504 crore, while profits fell 6.5% to ₹873 crore. Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) rose 2.9% to ₹1,389 crore, and margins stood at 25.2% 

Earnings Review

SEBI-registered analyst Lalit Mundhra noted that the FMCG company reported record domestic sales of ₹5,235 crore and a double-digit growth in its beverages & confectionery segment. Its flagship brand Maggi returned to volume growth, indicating a recovery. 

Additionally, its petcare division reported its best-ever performance since integration. E-commerce contributed 8.5% of total sales, with a notable portion of this coming from quick commerce channels, along with growth in its Out-of-Home (OOH) business. 

The board had also declared a final dividend of ₹10 per share, with the record date set for July 4. 

Valuation Concerns

Mundhra noted that on the valuation front, Nestle traded at a price-to-earnings (PE) ratio of 70x and 62x for FY26E and FY27E.

Technical Trends & Sentiment Check 

On the technical front, the stock found support at the trendline and 0.5% of the last swing. If Nestle closes below ₹2,326, it could see a downside towards ₹2,284. If it remains above that level, it is expected to continue trading in the current channel, said Mundhra. 

Nestle India shares have risen 7.5% year-to-date (YTD).

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