Nestlé India raises advertising spend by 42% annually

New Delhi: Nestlé India increased its consumer-focused media and advertising expenditure by 42% year-on-year during the December quarter, as the company reported its strongest volume growth in nearly five years and record quarterly turnover.

The company posted an 18.5% increase in sales for the third quarter of FY26, with total turnover rising to Rs 5,643.5 crore, according to its regulatory filing. 

Chairman and Managing Director Manish Tiwary said the performance was driven by broad-based, volume-led growth across categories, supported by capacity expansion and brand investments, alongside a recovery in consumption following GST-related benefits.

The company’s domestic sales rose 18.3% during the quarter, reflecting stronger traction across both rural and urban markets. Nestlé India reported that all four of its product groups recorded positive volume growth, with three delivering double-digit expansion.

Confectionery emerged as the fastest-growing category, supported by higher advertising spends, wider product availability and expanded retail presence. The powdered and liquid beverages segment extended its run of double-digit sell-out growth, while prepared dishes and cooking aids posted strong value growth on the back of accelerated volumes. Milk products and nutrition recorded mid-single-digit growth, with improvement in select segments.

Nestlé India’s pet food business also reported double-digit growth during the quarter, while its out-of-home business, Nestlé Professional, continued to expand across foodservice channels.

From a financial perspective, the company reported profit after tax of Rs 1,018.1 crore for the quarter. Operating expenses increased in line with higher advertising and consumer engagement spends, even as margins remained stable.

In its outlook commentary, the company flagged elevated input costs in categories such as milk and edible oils, while noting relative stability in coffee prices due to favourable crop conditions. The December quarter results were approved by the board on January 30.