Nestlé India FY25 Results: Rs 19,089 Crore Revenue, Rs 2,909 Cr Profit

NEW DELHI (India CSR): Nestlé India Limited, a name synonymous with quality and trust in Indian households for over 113 years, has once again demonstrated its remarkable resilience and adaptability, delivering an outstanding financial performance for the fiscal year 2025. The Annual Report 20225, aptly titled “Adversity Makes Us Stronger”, paints a vivid picture of a company that not only defied economic challenges but also strategically positioned itself for sustained, purpose-led growth. As Chairman and Managing Director Suresh Narayanan remarked in his farewell letter, this past decade, culminating in FY 2025, has been an unpredictable yet promising journey, where “true resilience was forged”. From navigating critical moments like the MAGGI crisis in 2015 to seizing the rising India opportunity.

Nestlé India’s journey is a testament to its unwavering commitment to its consumers, people, and the planet. This deep dive into its financial report unveils the strategic pillars that underpin its success and its ambitious roadmap for a future that is “FUTURE-READY, and most importantly, inclusive and compassionate”.

Overview: Nestlé India’s FY2025

I. Financial Performance: A Decade of Unprecedented Growth and Shareholder Value

Nestlé India’s financial results for FY 2025 highlight a period of robust growth and increased profitability, cementing its position as a market leader. The company reported a turnover of Rs 20,077.50 crores for the financial year ended March 31, 2025. When compared to the corresponding twelve-month period ended March 31, 2024, which recorded a turnover of Rs 19,467.10 crores, this signifies a strong upward trajectory in sales.

The profit after taxes for FY 2025 reached Rs 3,314.50 crores, a significant achievement reflecting efficient operations and strategic management. Over the last decade (2015-2025), Nestlé India’s revenue witnessed a Compound Annual Growth Rate (CAGR) of 10.3%, while profits from operations grew by an even more impressive 13.5%.

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This consistent financial strength is further underscored by its market capitalization, which surged to 3.9 times its 2015 value, reaching approximately Rs 2,17,007.70 crores in FY 2025 from Rs 56,153.50 crores in 2015. The Total Shareholder Return (TSR) CAGR for the decade stood at 17.0%, illustrating substantial value creation for its expanding shareholder base, which has grown from around 80,000 to over 5,50,000. The Return on Average Equity for FY 2025 was a strong 88.9%, demonstrating effective utilization of shareholder funds.

The company’s operating cash flow for FY 2025 was Rs 2,936.30 crores, highlighting its strong liquidity. Nestlé India’s dividend payout also reflects its financial health, with a total dividend for FY 2025, including the proposed final dividend, amounting to Rs 2,603.23 crores, and a dividend per share of Rs 27.00. The proposed final dividend alone is Rs 10.00 per equity share, amounting to Rs 964.16 crores.

II. Diverse Portfolio and Unrivalled Market Leadership

Nestlé India’s strategic recalibration since 2015, moving beyond being solely a “MAGGI noodles Company”, has yielded a diversified and robust product portfolio. The company launched over 150 new products that contributed 7% of its total sales. Each business segment has shown commendable performance:

• Milk Products and Nutrition: Nurturing Health from Infancy to Adulthood This vital segment contributed 37.9% to sales, reinforcing Nestlé India’s commitment to offering nutritious choices. A significant innovation was the launch of an entire range of CERELAC infant cereals and CEREGROW toddler cereals with zero refined sugar, catering to health-conscious parents. The iconic MILKMAID brand delivered strong growth, propelled by the introduction of MILKMAID Mini, a resealable penetration pack that sold over 1,000 tons in its first year. Further expanding its healthy offerings, Nestlé a+ launched an unsweetened low-fat Greek yogurt, providing 10% of the daily protein requirement in a single serve. Signaling its strategic foray into the health sector, the company also joined hands with Dr. Reddy’s Laboratories Ltd. in a joint venture for healthcare products. The investment for a 49% stake in Dr. Reddy’s and Nestlé Health Science Limited amounted to Rs 575.03 crores.
• Prepared Dishes and Cooking Aids: The Heartbeat of Indian Kitchens Referred to as the “Dil ki dhadkan” or heartbeat of the company, this segment registered satisfactory growth, contributing 31.4% to sales. MAGGI famously doubled its business in India, solidifying its position as the largest market worldwide for MAGGI. Product innovations included extending the popular spicy range with a Spicy Cheesy variant and a category-first launch of MAGGI Besan Noodles. Digital marketing efforts significantly boosted MAGGI’s presence in the burgeoning Q-commerce space. Demonstrating its commitment to environmental sustainability, MAGGI reduced plastic content by 40% in each cup of its Cuppa Noodles range through innovative “Thermofoam cup” technology.
• Confectionery: Doubling Delight and Global Presence Despite category challenges like high-cost inflation, the Confectionery portfolio displayed satisfactory growth, contributing 16.9% to sales. Impressively, the business has tripled in the last 10 years. KITKAT doubled its market share and emerged as the fastest-growing brand within India’s chocolate category. India is now the second largest market for KITKAT globally, a remarkable leap from its 10th position a decade ago. Similarly, MUNCH and MILKYBAR also doubled their business. The company drove premiumization through innovative product launches such as KITKAT Salted Caramel and MUNCH MAX Butterscotch/Nuts. In FY 2025, Nestlé India sold an astounding 395 crore fingers of KITKAT and 220 crore units of MUNCH. Further bolstering this segment, the new factory at Sanand, Gujarat, has increased investments in strengthening brand love and building cool chain infrastructure.
• Powdered and Liquid Beverages: Brewing Success and Expanding Reach This dynamic portfolio achieved robust growth, contributing 13.8% to sales. NESCAFÉ strengthened its leadership position, bringing over 4.3 crore households into the coffee category and achieving its highest household penetration. Innovation was key, with new launches like NESCAFÉ ICE ROAST (specifically designed for cold preparation) and NESCAFÉ ROASTERY (a luxury, expertly crafted coffee). The company sold an astounding 1,210 crore cups of coffee, solidifying its market dominance. Nestlé also expanded its Ready-To-Drink cold coffee range, offering variants like Iced Latte and Choco Latte at attractive price points of Rs 50 and Rs 75, respectively, propelling NESCAFÉ RTD to market leader position.
• Out-of-Home (Nestlé Professional): Solutions Beyond the Home The Out-of-Home business delivered strong double-digit growth and emerged as one of the fastest-growing segments, propelled by relevant innovations and premiumization across categories. India is now the second largest Out-of-Home business for Nestlé in the Asia, Oceania and Africa zone. The company’s “Retail ONE” initiative significantly expanded its branded kiosks, adding over 100 to reach a total of 960 kiosks in educational institutes, hospitals, malls, and airports. These kiosks are operator-funded and have created employment opportunities for approximately 1,890 people. Strategic collaborations with popular F&B chains like Chai Point, SOCIAL, Mad Over Donuts, and Pizza Hut for co-created menus further expanded its market footprint.
• New Category Ventures: Diversifying for Future Growth Nestlé India successfully ventured into new categories, strengthening its growth pillars. This includes the expansion of its Breakfast Cereals portfolio with the introduction of MUNCH CHOCO FILLS. The Petcare business also reported its highest-ever growth since its integration into Nestlé India, driven by the strong performance of brands like PURINA FELIX, FRISKIES, and PRO PLAN. Furthermore, Nestlé India marked a significant milestone with the launch of NESPRESSO in India, opening its first boutique in New Delhi and ensuring nationwide accessibility across over 16,000 pin codes.

III. Strategic Growth Drivers: Innovation, Digitalization, and Capacity Expansion

Nestlé India’s impressive performance is rooted in its forward-looking strategies, embracing technology and expanding its reach:

• Omni-channel Approach and RUrban Penetration: Reaching Every Corner of India The company has pursued a penetration-led volume growth strategy since 2015, now reaching more households and consumption occasions than ever before. Its e-commerce business experienced accelerated growth, primarily driven by Quick Commerce, which contributed 8.6% (or 8.5% of domestic sales) to sales in the period under review. The company is also deepening its presence in RUrban (rural-urban) markets through enhanced distribution infrastructure and leveraging technology for geo-targeting specific markets and pin codes with its products.
• Innovation and Speed: Agility in Product Development Nestlé India boasts a pace of innovation that is an impressive four times faster than a decade ago. This agility allows it to respond swiftly to evolving consumer needs and preferences, continuously refreshing its portfolio with impactful innovations and renovations. The company no longer fears failure in new product launches, prioritizing speed in execution.
• Investments in Capabilities and Capacity: Building for Tomorrow The company is significantly investing in its manufacturing footprint, with CAPEX levels increasing from 1.8% of sales in 2015 to 10.0% of sales in FY 2024-2025. A total investment of approximately Rs 6,500 crores is planned between 2020 and 2025 to develop new capabilities and capacities. This includes increasing product lines in existing factories and establishing new facilities. A new KITKAT production line was added at its Sanand Factory in Gujarat with an investment of approximately Rs 1,100 crores. Furthermore, the foundation stone for the 10th factory in Khordha, Odisha, was laid in April 2025, with an initial investment of approximately Rs 900 crores. This commitment underscores its “Make in India” philosophy. Additionally, at the Nanjangud Factory, the existing coffee manufacturing line was replaced with a new one at a capital expenditure of approximately Rs 659.20 crores.
• Digital Transformation and AI Integration: Powering Efficiency and Insights Nestlé India has accelerated its digital journey, with all 8,629 employees now digitally wired. Over 3,000 of its employees are harnessing secure generative AI tools to enhance creativity and productivity in their daily tasks. The company leverages AI/ML technologies for optimizing marketing investments, sales, and distribution through solutions like the Re-Distributor ‘Distributor Management Solution’ (RD DMS) and RACE (Real-time ACtivity Execution) for precise targeting and transparent retail activities. A new platform called ‘FinPAL’ has transformed financial insights, providing a comprehensive, customizable view of profit and loss across the South Asia Region. This digital prowess enables real-time decision-making and swift reactions to consumer demands throughout the supply chain.

IV. Commitment to Sustainability and Societal Impact

Beyond financial metrics, Nestlé India demonstrates a strong commitment to environmental stewardship and social responsibility, aligning its initiatives with UN Sustainable Development Goals and national priorities.

• Environmental Initiatives: Towards a Net-Zero Future The company is dedicated to its global Net Zero Roadmap, aiming for zero-emissions by 2050, with intermediate targets of a 20% reduction by 2025 and 50% by 2030 based on a 2018 baseline. Significant progress has been made, with a 70% reduction in GHG emissions (Scope 1+2), a 13% reduction in energy use, and a 31% reduction in water use per ton of product manufactured compared to the 2018 baseline in 2024. Key initiatives include installing biomass boilers in Moga, Nanjangud, and Sanand to reduce reliance on fossil fuels, converting Furnace Oil to Natural Gas, and eliminating coal usage from eight factories. The “Zer’Eau project” focuses on reducing water consumption in milk factories by utilizing water embedded in fresh milk. The company has also achieved plastic neutrality since 2020 and reduced virgin plastic usage by over 900 tonnes through initiatives like size reduction for sachets and Thermofoam cups for MAGGI Cuppa. Nestlé India has actively planted over 10 lakh trees in dairy farms by March 2025 and installed over 5,800 small and 200 large biodigesters to reduce methane emissions from manure. Through the NESCAFÉ Plan, it collaborates directly with around 1,800 coffee farmers to promote sustainable practices and source 100% sustainably sourced coffee. Similar efforts are underway for spices through the MAGGI Spice Plan, aiming for 100% traceability for 10 key spices, and for staple crops with over 800 farmers in the Sustainable Paddy Project, 900 small farm holders in the Sustainable Wheat Project, and 1,400 farmers in the regenerative agriculture sugar project. An impressive 55% of inputs were sustainably sourced from suppliers adhering to Nestlé Responsible Sourcing Core Requirements or certified to social and environmental standards.
• Social Responsibility: Empowering Communities and People Nestlé India has positively impacted the lives of over 1.6 crore beneficiaries through its societal initiatives. These include:
  • Project Jagriti: Reaching over 1.47 crore beneficiaries in 7 states and 1 union territory, focusing on health, hygiene, and nutrition for women, young couples, and adolescents.
  • Nestlé Healthy Kids Programme: Promoting healthy and active lifestyles for ~6.39 lakh adolescents and ~71,000 parents across 25 states and union territories.
  • Project Serve Safe Food: Training 92,800 street food vendors in safe food handling practices across 26 states and 4 union territories.
  • Project Vriddhi: An integrated rural development project expanded to 19 villages, impacting approximately 25,000 beneficiaries.
  • Providing ~22,000 food ration kits as relief support to marginalized communities during special situations.
  • Gender Diversity and Inclusion: The company boasts a high representation of women, with 50% of its board members being women and 1 in every 5 people in the sales force being a woman.
  • Employee and Partner Well-being: The company has 8,629 employees and launched the DShield – DS Insurance scheme for distributors’ sales personnel, engaging 85% of its distributors and ~80% of Distributor Sales People in a cost-sharing model. The company allocated 0.17% of its total revenue towards employee well-being measures.

V. Robust Governance and Widespread Recognition

Nestlé India maintains strong corporate governance practices, underpinned by ethical principles and transparency. The company places the highest priority on consumer safety and product excellence, with a rigorous quality assurance framework from raw material procurement to final production. The Risk Management and Sustainability Initiatives (RMSI) Committee meets quarterly to review detailed action plans and drive execution of risk mitigation strategies. The company’s audit reports, both standalone and consolidated, have no qualifications, reservations, adverse remarks, or disclaimers. The auditors’ fees for FY 2025 amounted to Rs 2.29 crores. A significant legal victory for the company was the dismissal of a Rs 284.55 crores compensation complaint filed by the Union of India regarding MAGGI Noodles in 2015, with the NCDRC dismissing the complaint in favor of Nestlé India on April 2, 2024. The company successfully managed 18 shareholder complaints in FY 2025, with all resolved. Furthermore, the company maintained an AAA credit rating for its bank credit facilities from CRISIL, indicating a stable outlook and strong financial safety.

The company’s excellence has been recognized through numerous awards and recognitions across various categories:

• Corporate and Factory Awards: Including “Gomant Uchcha Suraksha Puraskar 2024” for Nestlé Bicholim, ‘Green Award’ for Nestlé Ponda, Gold Medal for Manufacturing Competitiveness for Nestlé Nanjangud.
• Supply Chain Awards: ‘Excellence in Warehousing & Distribution’ and ‘Best Supply Chain in FMCG Sector – India’.
• Digital and Innovation Awards: Recognized as the ‘Best Digital Enterprise of India in FMCG category’ by ET CIO and ‘Product Innovator of the Year’ at the India Food Summit 2024.
• Employee Experience and Diversity: Recognized for ‘Pioneering Initiatives for the New Gen Workforce’ and as a Bronze Employer for LGBTQ+ Inclusion.
• Brand and Project Awards: Numerous media metals and honors for KITKAT, MAGGI, NESCAFÉ, and MUNCH, including KITKAT being acknowledged as India’s Most Desired Chocolate Bar Brand 2024. Nestlé India also won first place in ‘Initiatives on Agri Based Decarbonization’.

VI. Outlook: Navigating Challenges, Seizing Opportunities

While the global economic landscape in 2024 faced challenges such as geopolitical tensions, persistent inflation, and market volatility, India’s economy demonstrated resilience, driven by robust domestic consumption and significant government spending. The Fast-Moving Consumer Goods (FMCG) sector, a 3% contributor to India’s GDP, saw shifts in consumption patterns due to inflation. However, Nestlé India is well-positioned to capitalize on emerging opportunities.

These include demographic shifts driving FMCG growth, unlocking rural potential through strengthening its distribution network, and the growing demand for premiumization and enhanced consumer experiences across both urban and rural India. The Indian government’s focus on export growth also presents a significant growth vector for the company, opening opportunities in regions like Africa, Latin America, and parts of Eastern Europe. In FY 2025, the company’s foreign exchange earnings from exports reached Rs 784.83 crores, with a foreign exchange outgo of Rs 3,735.01 crores.

The company’s management views AI as a transformative force, optimizing raw material sourcing, enhancing quality controls, and ensuring increased safety through digitalized traceability. The R&D expenditure for FY 2025 totaled Rs 45.35 crores, with capital R&D at Rs 12.71 crores and recurring at Rs 32.64 crores, representing 0.23% of total turnover. As Suresh Narayanan hands over the helm to Mr. Manish Tiwary, the company remains confident in its trajectory, committed to “walking faster, more focused, more determined and FUTURE-READY”.

You Learn

Nestlé India’s Annual Report for FY 2025 paints a comprehensive picture of a company firing on all cylinders – financially strong, strategically agile, deeply committed to sustainability, and people-centric.

Its ability to leverage innovation, technology, and a robust distribution network, coupled with a purpose-led approach, has enabled it to not only overcome adversities but to emerge stronger and more resilient.

The impressive financial results, coupled with significant strides in environmental and social initiatives, underscore Nestlé India’s dedication to creating shared value for all its stakeholders.

As it embarks on its next phase of growth, Nestlé India stands as a beacon of corporate excellence, ready to unlock the power of food to enhance quality of life for today and generations to come, truly embodying the spirit that “Adversity Makes Us Stronger”.

(India CSR)