Nestle India Q2 FY27: PAT +36% YoY to ₹1,010 Cr, consolidated margins expand 190bps

Nestle India's consolidated PAT rose 35.9% YoY to ₹1,009.6 Cr (36.2% on an adjusted basis, stripping a ₹3.7 Cr one-off restructuring charge taken this quarter against none a year ago), on revenue of ₹6,788.3 Cr, up 20.3% YoY. The print clears the ₹1,000 Cr threshold flagged pre-result by Kotak Neo and beats both the Street's average estimate of ~₹858 Cr PAT (per brokerage polls ahead of the print) and our own pre-result range of ₹780–820 Cr PAT / ₹6,000–6,100 Cr revenue; HDFC Securities' standalone call for ~21% revenue growth and ~37% adjusted PAT growth tracks almost exactly to the actual 20.3%/36.2%. Sequential growth moderated as expected off Q1's unusually strong base (+5.3% PAT QoQ, +6.4% revenue QoQ, versus Q1's 25%/48% prints) — consistent with our preview framing that Q2 enters a higher base. Operating margin (EBITDA/revenue) expanded 189bps YoY to 23.80% from 21.91%, at the top of the 22–23% band we flagged pre-result, though it eased 22bps QoQ from Q1's 24.02% as that exceptional base normalized. Net margin improved to ~14.87% from 13.16% YoY. The quarter's only drag was a small ₹3.7 Cr restructuring/severance exceptional charge, immaterial to the growth math (35.9% reported vs 36.2% adjusted YoY PAT). Management gave no formal numeric FY27 guidance in this release, continuing the stance from the last concall of refusing forward projections; the qualitative themes flagged then — margin sustainability via cost-efficiency savings and premiumization — are directionally consistent with this quarter's YoY margin expansion, though the filing discloses only a single operating segment (Note 4), so volume and premium-mix specifics can't be verified from the statement itself. Standalone PAT of ₹1,026.8 Cr (+36.3% YoY) runs about 1.7% above consolidated; the gap traces to a ₹17.2 Cr share-of-loss from the newly acquired 26% stake in Radiance KA Sunshine Seven, a captive renewable-energy JV the company funded with a ₹7.61 Cr equity subscription this quarter (Note 5) — matching the renewable-energy investment flagged as a pre-result watch item almost to the rupee. No management press-release commentary was available in the context to cross-check against the numbers. GST/customs appeals remain unresolved going into Q3 (per the September disclosure confirming a ₹1.3 Cr liability under appeal), and the 22bps QoQ margin easing bears watching to see whether it is a one-quarter normalization off Q1's high base or the start of a trend.