Nestlé India increased its advertising and marketing expenditure by 46% in the second quarter of FY27, alongside a 20.5% year-on-year rise in total sales to ₹6,782.2 crore. The company attributed its performance to double-digit volume growth and broad-based momentum across its product categories.
The company’s profit after tax (PAT) grew 36.3% to ₹1,026.8 crore during the quarter, while its EBITDA margin stood at 23.8%. Domestic sales increased 20.4%.
The higher marketing outlay comes as Nestlé India continues to invest in brand building, product innovation and distribution expansion amid commodity cost pressures and food inflation. Chairman and Managing Director Manish Tiwary underscored the importance of operational efficiencies, productivity improvements and portfolio renovation in sustaining growth while managing input costs.
Confectionery, beverages and prepared dishes were among the key contributors to the quarter’s performance. The confectionery business delivered double-digit, volume-led growth, supported by market share gains for KitKat and continued momentum for Munch and Milkybar. Nestlé India also expanded its premium portfolio with the launch of KitKat Delights Choco Lava.
In the powdered and liquid beverages segment, growth was driven by increased household penetration, affordability and premiumisation in coffee. Nescafé Classic continued to attract new consumers, while the relaunch of Nescafé Sunrise strengthened the brand’s position in the chicory-coffee segment. Nescafé Gold maintained double-digit growth, and the ready-to-drink coffee business continued to expand.
The prepared dishes and cooking aids portfolio also registered strong growth, with Maggi noodles benefiting from deeper rural penetration. The company continued to promote broader usage of Maggi Masala-ae-Magic by highlighting its applications in regional cooking.
Nestlé India’s milk products and nutrition business recorded broad-based growth, supported by brand investments and portfolio optimisation. Its pet food business also posted strong double-digit growth, driven by digital consumer engagement and a targeted distribution strategy.
E-commerce continued to be a focus area, with the company working on product availability, channel-specific assortments, digital shelf execution and targeted shopper engagement. General trade also recorded double-digit growth across town classes, with rural markets leading the performance. Expansion of distribution touchpoints helped strengthen the company’s direct reach and market coverage.
The out-of-home business grew across categories, supported by customer acquisition, retention initiatives, innovation and premiumisation. In beverages, the expansion of Nescafé Duo Gusto, which Nestlé India describes as its first hot-and-cold coffee machine, along with a wider range of cold beverage solutions, contributed to growth.
Exports also delivered double-digit growth during the quarter. Nestlé India expanded Maggi Masala-ae-Magic into Canada and Nescafé Sunrise into five West African markets, while introducing a new instant coffee variant in the Middle East.
The company is also using digitalisation to improve sales execution. Building on its NestMitra platform for retailers, Nestlé India is equipping its sales teams with digital tools that provide near-real-time market insights to identify opportunities and strengthen engagement across markets.
