Nestle India shares jump 3% after strong Q4. What are Macquarie, Nomura, other brokerages saying?

Shares of FMCG major Nestle India gained 3% to their day’s high of Rs 1,421 on the BSE on Wednesday after it reported a 27% year-on-year (YoY) rise in consolidated net profit to Rs 1,111 crore for the January-March quarter of FY26, beating estimates and boosting investor confidence.

Revenue from operations meanwhile grew 23% YoY to Rs 6,748 crore in Q4 FY26, from Rs 5,504 crore in the same period of the previous financial year.

This performance was powered by double-digit volume growth, driven by over 50% increase in advertising spends, whilst delivering a healthy EBITDA margin of 26.3%. The company in its press release noted that total sales and domestic sales during the quarter increased by more than 23% each, with all product groups contributing to this performance. EBITDA margin stood at 26.3%.

Nestle share price: Should you Buy, Sell or Hold?

Nomura, which has raised its target price to Rs 1,500 from Rs 1,450, retained its Buy call.The brokerage highlighted that several internal levers are beginning to deliver results. A key driver has been the continued expansion of its distribution network through a strengthened route-to-market strategy, with the company now reaching 2.16 lakh villages, marking the highest numeric addition in recent years, while also improving coverage efficiency.

Nomura also pointed to the company’s omni-channel push, where it is scaling up e-commerce and quick commerce with platform-specific product packs across categories. At the same time, it is strengthening its presence in modern trade and chain pharmacies, while maintaining steady growth in general trade. This approach has led to strong double-digit growth across channels.

Macquarie has maintained a ‘Neutral’ stance on Nestlé India with a target price of Rs 1,400. The brokerage noted that Q4 EBITDA came in ahead of its estimates as domestic sales growth accelerated to 23%, compared to 18% in the previous quarter. It believes the strong sales momentum can be sustained, supported by factors such as grammage increases linked to GST rate cuts and expansion in rural distribution. However, it continues to see limited upside at current valuations, with the stock trading at around 63 times FY27 estimated earnings.

Motilal Oswal Financial Services has retained a ‘Neutral’ rating on Nestlé India while raising its target price to Rs 1,400. The brokerage has increased its EPS estimates by 4% to 5% for FY27 and FY28, supported by improving demand conditions. It noted that GST 2.0 has aided consumption by enhancing affordability, with nearly 85% of Nestlé India’s portfolio benefiting from the changes. This has driven strong volume growth across both low unit packs and larger pack sizes. However, Motilal Oswal flagged rising crude oil prices amid ongoing geopolitical tensions as a key risk. It also believes valuations remain slightly expensive, which limits upside at current levels.

Nuvama Institutional Equities has maintained a ‘Buy’ rating on Nestlé India and raised its target price to Rs 1,640 from Rs 1,595. The brokerage highlighted strong financial performance, with revenue growing 23% year-on-year and EBITDA rising 28%, supported by operating leverage.

EBITDA margin expanded to 26.3%, up 100 basis points year-on-year and 500 basis points sequentially. Volume growth remained robust in double digits, exceeding expectations of around 9%. The prepared dishes segment saw strong traction, led by Maggi and supported by new product innovations.

Kotak Securities has maintained a ‘Reduce’ rating on Nestlé India and raised its target price to Rs 1,265 from Rs 1,200. The brokerage highlighted that internal execution, along with favourable external factors, supported performance during the quarter. The quarter saw strong volume-led growth along with margin expansion, even as advertising and promotion spends remained elevated. However, Kotak noted that the stock continues to trade at expensive valuations of around 69 times and 58 times FY27 and FY28 estimated earnings.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)