Nestle Share Price Skyrockets to 52-Week High; Up 10% in 3 Days; Big Rally Ahead or Time to Exit?

Shares of Nestle India have surged sharply, hitting a new 52-week high, after the company reported better-than-expected Q4 FY26 results The Counter has been quite bullish over the past few sessions.

Nestle India share price today opened at Rs. 1,391, higher than the previous close, and quickly surged nearly 3% to hit a fresh 52-week high of Rs. 1,425 on the NSE. The rally has been sharp, with the stock gaining over 10-11% in the last three days and nearly 21% in the past one month.

Nestle India Q4 FY26 Results

Nestle India clocked a stellar Q4 FY26 performance due to strong domestic demand.

The company reported domestic sales of Rs. 6,445.10 crore, up 23.1% YoY, while export sales rose 31.0% YoY to Rs. 278.70 crore. Overall, total sales stood at Rs. 6,723.80 crore, growing 23.4% YoY, and revenue from operations came in at Rs. 6,747.90 crore, up 22.6% YoY. Total income stood at Rs. 6,766.40 crore, marking a 22.7% increase.

On the profitability front, EBITDA jumped 27.5% YoY to Rs. 1,771.60 crore, while EBITDA margin improved to 26.3%, expanding both YoY and sequentially. Profit before tax rose 25.6% YoY to Rs. 1,512.60 crore, and net profit surged 25.8% YoY to Rs. 1,114.10 crore. Earnings per share (EPS) increased to Rs. 5.78 from Rs. 4.59 last year.

Sequential Recovery and Margin Expansion

Nestle India also showed a strong sequential rebound from Q3 FY26. Revenue grew 19% QoQ, EBITDA surged 47.5% QoQ, and net profit rose 9.4% QoQ. Margins improved significantly from 21.3% in Q3 to 26.3% in Q4, supported by operational efficiency and lower exceptional impact.

The company reported an exceptional charge of Rs. 36.2 crore in Q4, significantly lower than Rs. 156.9 crore in Q3, aiding profit recovery.

Despite strong performance, Nestle India faced cost pressures. Raw material costs rose 17%, employee expenses increased, and finance costs were also higher. Total expenses grew 16.1% YoY, slightly outpacing revenue growth, which kept some pressure on margins.

One of the major highlights of the results was the company's improved financial position. Nestle India's cash reserves surged to Rs. 1,321 crore from Rs. 76 crore, as it repaid Rs. 730 crore in short-term borrowings, making it nearly debt-free.
The company also announced a final dividend of Rs. 5 per share, taking the total FY26 dividend to Rs. 12 per share, including the interim dividend paid earlier.

Nestle Share Price Target: What Brokerages Say: Should You Buy, Sell or Hold Nestle Shares?

Brokerages remain cautiously optimistic on Nestle India stock. Target prices are largely in the Rs. 1,250-Rs. 1,500 range.
Global brokerage Morgan Stanley has set a target of Rs. 1,461 (earlier Rs. 1,370) with an equal-weight rating, highlighting strong topline and margin performance.

Investec has given a Rs. 1,426 target (earlier Rs. 1,341) with a hold stance, citing continued volume-led growth. Macquarie is slightly cautious with a Rs. 1,400 target (earlier Rs. 1,260) and a neutral rating due to valuation concerns.

Similarly, Motilal Oswal Financial Services has maintained a neutral rating with a Rs. 1,400 target, while Goldman Sachs has also maintained a neutral stance with a a Rs. 1,425 target.

On the cautious side, Kotak Securities has assigned a lower target of Rs. 1,265 (earlier Rs. 1,200) with a reduced rating, citing expensive valuations.

However, Nomura remains bullish with a 'buy' rating and Rs. 1,500 target, backed by strong earnings and margin expansion. Overall, the consensus indicates limited upside from current levels, with most brokerages advising a hold/neutral stance despite strong business performance.

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