Shares of FMCG giant Nestle India surged up to 1.6% intraday to Rs 2,356.80 on the NSE on Friday, June 20, 2025, following the announcement that the company’s board will meet on June 26 to consider and approve a proposal for issuing bonus shares. In line with regulatory norms, the trading window for dealing in Nestle India securities will remain closed from June 19 to June 28 in anticipation of the board meeting.
Bonus shares are additional equity shares issued free of cost to existing shareholders based on their current holdings. Typically issued from accumulated earnings, bonus shares aim to reward shareholders, enhance stock liquidity, and attract wider investor participation, especially from retail investors. Nestle India shared the board meeting update after market hours on Thursday. However, the stock closed lower by 1.17% at Rs 2,313.30 on Friday, down Rs 27.50 from the previous day’s close.
Index Changes and Financial Performance
As part of the BSE Sensex’s semi-annual rebalancing effective June 23, Nestle India along with IndusInd Bank will be removed from the index. They will be replaced by Trent and Bharat Electronics, both of which have attracted increased investor attention after their recent inclusion in the Nifty 50.
For the quarter ending March 2025, Nestle India reported a 5.2% year-on-year decline in standalone net profit to Rs 885 crore, while revenue from operations grew 4.5% YoY to Rs 5,504 crore, slightly surpassing analyst estimates. Total sales increased 3.7%, with domestic sales rising 4.2%, supported by broad-based demand across product categories.
Outlook and Market Position
Looking ahead, Nestle India noted that commodity prices remain firm for coffee, while cocoa prices, although slightly corrected, remain elevated. Edible oil prices are stable, but milk costs have risen due to seasonal summer demand.
In FY25, the powdered and liquid beverages segment recorded strong double-digit growth, emerging as the company’s top-performing category. The confectionery segment, led by KITKAT—India’s second-largest market globally—also saw high single-digit growth. Despite solid operational results, Nestle India shares have underperformed broader market indices, falling nearly 8% over the past year. Year-to-date in 2025, the stock has gained approximately 7%, outpacing the Nifty’s 4.4% gain over the same period.
Nestlé India, a subsidiary of Swiss multinational Nestlé S.A., is one of the country’s leading food and beverage companies with well-known brands like Maggi, Nescafé, KITKAT, and Milkmaid. The company maintains a strong presence across both urban and rural markets in India.
