Nestle India Shares Fall Up To 2.8%: FSSAI Files Legal Action Over Baby Formula

Mumbai | 18 September 2026 

Nestle India shares fell as much as 2.8% on 18 September 2026, after the Food Safety and Standards Authority of India (FSSAI) said it had found a sample of the company’s follow-up formula, a milk product for infants, sub-standard with respect to biotin, and filed legal cases against the company. FSSAI said in a post on social media that it had also filed cases over two other Nestle India products, NAN Excella Pro Stage 1 and Lactogen Pro 1, for making claims in breach of regulations. 

What Are The Promotional Claims And The Lab Finding? 

A sample of follow-up formula manufactured by Nestle India was found sub-standard with respect to biotin during laboratory testing. A second, referral laboratory test also found the sample non-conforming with the prescribed biotin requirement. 

Separately, FSSAI flagged claims on NAN Excella Pro Stage 1 relating to “5 HMOs” and “Whey Protein”, and a claim on Lactogen Pro 1 that its whey protein was easy to digest. FSSAI said both products were in contravention of Regulation 4(2) of the FSS (Foods for Infant Nutrition) Regulations, 2020, which restricts promotional claims intended to increase the saleability of infant foods, and of Section 3 of the IMS Act, 1992, which prohibits their advertisement and promotion. FSSAI said it had sought clarifications from Nestle India on the claims. 

Is This Part Of A Wider Food Safety Crackdown In India? 

Indian authorities have stepped up action on food adulteration and advertisements in recent months and have proposed stricter labelling norms for packaged food items. They have also increased scrutiny of food business operators and shut down some outlets of Domino’s, Pizza Hut and McDonald’s. 

Nestle India previously faced action from the food regulator in 2015, when authorities banned its Maggi noodles nationwide over alleged excess lead levels and labelling lapses, triggering a nationwide recall. Maggi returned to shelves after fresh tests. 

How Did Nestle India Shares React? 

By the afternoon, Nestle India shares had pared most of the day’s fall. The stock was trading at ₹1,367.00 on the BSE, down ₹5.00 or 0.36%, as of 2:50 pm, and at ₹1,367.90 on the NSE, down ₹2.70 or 0.20%, as of 2:51 pm. The stock’s day high stood at ₹1,389.15 on the BSE and ₹1,390.00 on the NSE, with a day low of ₹1,332.80 on both exchanges. 

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