Nestle India Q2: Commodity Corrections and Firm Edible Oil Shape Financials

Image Source: The Economic Times

Nestle India reported ₹56.44 billion revenue and ₹7.53 billion profit in Q2 2025 amid easing cocoa demand and stable coffee prices. Milk prices may soften post-festive season, while edible oil costs remain firm, shaping a cautious outlook on margins and operational strategy.

Nestle India’s Q2 financial results reflect a mixed yet steady growth environment, with key raw material prices influencing margins and operational strategies. The company reported a revenue of ₹56.44 billion and a profit of ₹7.53 billion, demonstrating resilience amidst fluctuating commodity markets and evolving consumer demand patterns.

Cocoa Market Balancing

Globally, the supply and demand for cocoa are expected to balance out due to corrections in demand, easing price pressures that had affected consumer goods manufacturers. This adjustment could stabilize costs for Nestle, a major user of cocoa in its confectionery products.

Milk Price Outlook

Milk prices in India are projected to soften post the festive season, potentially easing input costs for Nestle’s dairy segment and contributing to margin improvement in the coming quarters.

Coffee Price Stability

Coffee prices, which had seen volatility, are anticipated to stabilize as upcoming crops in Vietnam and India appear normal, supporting a steadier supply-demand equation that benefits beverage producers like Nestle.

Edible Oil Market Tightness

Conversely, edible oil prices are expected to remain firm and may increase due to tight supplies and sustained global demand, posing cost challenges for food processors including Nestle.

Financial Performance

Nestle’s consolidated revenue for Q2 stood at ₹56.44 billion with a profit of ₹7.53 billion, indicating moderate growth despite inflationary pressures. Analysts note the impact of rising input prices, particularly in coffee, cocoa, and edible oils, on gross margins.

Strategic Focus Areas

The company continues to emphasize premium product offerings and distribution expansion to offset volume softness in some segments. Additionally, cost management and supply chain optimization remain priorities amid raw material price fluctuations.

Sources: Moneycontrol, Economic Times, Nestle India official financial disclosures

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