Shares of Nestle India settled with modest gains on Wednesday , driven by strong March quarter earnings and multiple brokerages raising target prices on the back of robust volume-led growth and margin expansion.

The stock closed at ₹1,395.80, with a 1 per cent gain, after scaling to a 52-week high of ₹1,425.20 in early trade from the previous closes of ₹1,379.90.

The rally was supported by an all-round beat in Q4 performance, sustained double-digit volume growth and optimism around continued demand momentum aided by distribution expansion and favourable policy changes.

The FMCG major reported a consolidated net profit of ₹1,110.9 crore for the March quarter, up 27.18 per cent from ₹873.46 crore a year ago. Revenue from operations rose 22.6 per cent year-on-year to ₹6,747.79 crore, led by broad-based growth across categories.

The company also announced a final dividend of ₹5 per share for FY 2025-26.

Operationally, the quarter saw strong domestic demand, with double-digit volume growth and gains in key brands such as Maggi, KitKat and Nescafé. Growth was supported by improved penetration, product innovation and expansion in quick commerce channels.

Growth drivers remain intact

Brokerages highlighted that GST rate cuts, expansion of quick commerce and rural distribution, along with continued brand investments, are expected to support near-term growth. Advertising spends also increased sharply during the quarter, signalling a continued push towards market share gains and premiumisation. Margins remained resilient despite higher promotional spends, aided by cost efficiencies and stable input prices.

Valuation mixed, TPs raised

Brokerages largely raised target prices following the strong Q4 performance, though views on valuation remain divided. Morgan Stanley maintained an equal-weight rating and increased its target price to ₹1,461 from ₹1,370, citing a strong beat on both revenue and margins and continued focus on growth initiatives.

Goldman Sachs retained a neutral stance while raising its target price to ₹1,425 from ₹1,275, noting that volume growth and GST-led tailwinds could sustain momentum in the near term. Investec upgraded the stock to hold from sell and lifted its target price to ₹1,426 from ₹1,341, highlighting robust volume growth and margin strength, while awaiting more attractive valuations.

Macquarie also kept a neutral rating, increasing its target price to ₹1,400 from ₹1,260, driven by healthy growth outlook supported by distribution expansion and GST-linked benefits.

Citi remained positive with a buy rating, increasing its target price to ₹1,675 from ₹1,600, stating that sustained earnings growth and strong brand equity justify premium valuations.

Elara Capital upgraded the stock to accumulate from reduce and raised its target price to ₹1,475 from ₹1,338, driven by strong revenue growth and improved earnings outlook.

Published on April 22, 2026