Nestle India (NEST IN) – Q4FY26 Result Update – Strong volume led growth continues – Upgrade to ‘Accumulate’
Published on 21 Apr 2026
Nestlé delivered a strong quarter, reporting 22.6% YoY revenue growth and 27.5% YoY EBITDA growth, with margins expanding 101 bps led by operating leverage despite elevated input costs (SMP & palm oil). We expect sales momentum to sustain in 1H27 given relatively low base although 4Q26 growth numbers are unlikely (panty loading). NEST will also benefit from lower prices of coffee (down 25% from peak) and cocoa in FY27, even as palmoil and packaging costs will increase.
We expect NEST to sustain double digit growth led by 1) innovations 2) distribution expansion and 3) benefits of INR50bn capacity expansion over past few years. We estimate an EPS CAGR of 14.3% over FY26–28. The stock currently trades at 59.5x FY28 EPS. We remain positive operationally and raise DCF-based target price to INR1,504 (INR1,379 earlier).
