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Nestlé India delivered robust performance with FY25-26 revenue growing 14.9% to INR 23,100 Cr, supported by 10.7% volume growth. Q1 FY27 revenue jumped 25.4% YoY. The company is actively expanding its reach, now covering 6.2 million outlets and deepening rural penetration to 45,300 villages. Premiumization is a key driver, with the premium portfolio contributing 14% of sales and growing at a ~17% CAGR since 2021.
Strategic focus includes aggressive investment in brand building, with advertising spends up 40.6% in Q1 FY27, and substantial capacity expansion, investing over INR 6,400 Cr since 2020. Digital initiatives, like AI-powered sales execution tools, are boosting productivity. Notable achievements include India becoming KITKAT's largest market and NESCAFÉ's 20th consecutive quarter of double-digit growth.
Management is optimistic about India's growth opportunity, driven by core and premiumization strategies. However, they acknowledge near-term headwinds from potential consumption slowdowns due to inflation and geopolitical disruptions impacting supply chains and costs. Nestlé India remains committed to consumer-centric, tech-enabled growth.