Nestle India shares closed with modest gains on Wednesday, following the company’s strong earnings for the March quarter and multiple brokerages raising target prices due to robust volume-led growth and margin expansion. The stock finished at ₹1,395.80, reflecting a gain of 1 percent, after reaching a 52-week high of ₹1,425.20 during early trading, compared to the previous closing of ₹1,379.90.
The stock’s rally was bolstered by an impressive Q4 performance, characterized by sustained double-digit volume growth and optimism regarding ongoing demand momentum driven by expansion in distribution and favorable policy changes. The company’s consolidated net profit for the March quarter stood at ₹1,110.9 crore, marking a 27.18 percent increase from ₹873.46 crore the previous year. Revenue from operations grew by 22.6 percent year-on-year to ₹6,747.79 crore, reflecting broad-based growth across various categories.
Additionally, Nestle announced a final dividend of ₹5 per share for FY 2025-26. The quarter saw strong domestic demand with double-digit volume growth, particularly in key brands such as Maggi, KitKat, and Nescafé. This growth was underpinned by improved market penetration, product innovation, and the expansion of quick commerce channels.
Brokerages cited several growth drivers as maintaining their momentum, including GST rate cuts, quick commerce expansion, and enhanced rural distribution, along with ongoing investments in brand development. Advertising expenditures increased significantly during the quarter, indicating a strategic focus on market share growth and premiumization. Margins remained robust despite higher promotional spending, attributed to cost efficiencies and stable input prices.
In terms of valuation, brokerages raised target prices following the strong Q4 results, although opinions on valuation diverged. Morgan Stanley maintained an equal-weight rating while increasing its target price to ₹1,461 from ₹1,370, highlighting a significant revenue and margin beat alongside ongoing growth initiatives. Goldman Sachs retained a neutral outlook but raised its target price to ₹1,425 from ₹1,275, suggesting that volume growth and GST-related benefits may sustain momentum in the short term. Investec upgraded its rating from sell to hold and lifted its target price to ₹1,426 from ₹1,341, referencing robust volume growth and margin strength while awaiting more attractive valuations.
Macquarie also held a neutral rating, adjusting its target price to ₹1,400 from ₹1,260, driven by a positive growth outlook supported by distribution expansion and GST benefits. Conversely, Citi maintained a buy rating, raising its target price to ₹1,675 from ₹1,600, asserting that sustained earnings growth and strong brand equity warrant premium valuations. Elara Capital upgraded its rating from reduce to accumulate, raising its target price to ₹1,475 from ₹1,338, driven by strong revenue growth and an improved earnings outlook.
Published on April 22, 2026.
