Nestlé India shares fell nearly 9% on Thursday, October 15, despite the FMCG giant reporting strong revenue, net profit and volume growth for the September quarter (Q2 FY27). The stock plunged as much as 8.87% to a low of ₹1,260.50 on the NSE before recovering, ending the session down 4.03% at ₹1,327.50 by 01:07 PM. Investor concerns over rising food inflation and input costs may have amplified the selling pressure.

While revenue and net profit exceeded market forecasts, several key metrics missed Street expectations. Total sales rose 20.5% to ₹6,782.2 crore, driven by double‑digit volume growth, yet the EBITDA margin of 23.8% and the 36.3% rise in profit after tax (₹1,026.8 crore) were lower than analysts had projected. These shortfalls, coupled with worries about margin compression, contributed to the sharp decline in the stock price.

Manish Tiwary, Chairman and Managing Director, addressed the results, acknowledging that rising inflation, especially food inflation, is a reality. He said the company would navigate external challenges through continuous innovation, renovation, sustained brand investments, and an intensified focus on productivity and operational efficiencies to mitigate commodity cost pressures. Tiwary highlighted the firm’s commitment to maintaining healthy margins amid volatile input costs.

The company’s commodity outlook notes that coffee and wheat are expected to remain range‑bound, while sugar and edible oils have stabilised at elevated levels. Cocoa remains volatile due to weather‑driven crop concerns in key origins. Milk prices have strengthened seasonally but should ease as flush supplies arrive, the company added, signalling mixed input cost dynamics that could affect future profitability.

Despite the robust growth figures, the stock’s sharp fall reflects investor unease over margin pressures from rising food inflation and input costs. The company reported total sales of ₹6,782.2 crore, EBITDA margin of 23.8%, and PAT of ₹1,026.8 crore, up 36.3% YoY. Analysts noted that while revenue and profit grew, the lower-than‑expected margins and commodity volatility have left the market cautious about the company’s future earnings trajectory.