The company increased its media and advertising spending by about 42%, a move analysts view positively as it fuels top-line momentum in a competitive landscape where peers have struggled for similar growth.

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Nestle India delivered a standout performance in its third quarter results (Q3 FY26), emerging as the top gainer on the Nifty index amid a strong showing in the FMCG sector. The company reported an impressive 18.6% year-on-year revenue growth, reaching Rs 5,667 crore, significantly surpassing street expectations that had been revised upward to double-digit levels. This marks one of the highest growth rates seen in the FMCG space recently and represents a massive beat on analyst forecasts.

Standalone net profit surged 46% to Rs 1,018 crore from Rs 696 crore in the same quarter last year, with EBITDA at around Rs 1,200-1,202 crore. While there was a slight miss on margins—due in part to aggressive consumer-focused investments—the overall numbers were described as solid and among the best from the consumer major in a long time. The company increased its media and advertising spending by about 42%, a move analysts view positively as it fuels top-line momentum in a competitive landscape where peers have struggled for similar growth.

Domestic business, the core driver, grew around 18.5%, while exports (a smaller segment) rose about 23%. The confectionery category led the charge, posting robust double-digit volume growth, particularly in rural India. Popular brands like KitKat and Munch performed exceptionally well, benefiting from expanded rural presence, premiumization, wider distribution, and quick commerce channels.

Other segments also contributed meaningfully, with powdered and liquid beverages (including coffee and milk products) along with prepared dishes and cooking aids (such as Maggi) delivering double-digit value growth. This broad-based strength aligns with earlier guidance from management, which projected healthy growth, margin stability in the 22-24% range despite higher ad spends, and rural outperforming the core business by at least 1.5 times—a target that has been met.

The results underscore Nestle India's premium valuation (trading at around 66-67 times earnings) being justified by its superior growth trajectory compared to other FMCG players. Investors appear to reward the company's ability to deliver volume-led expansion and market share gains, especially in rural markets and key categories like confectionery. The board also declared an interim dividend of Rs 7 per share, with February 6 set as the record date, signaling confidence in sustained momentum.