Nestlé India shares slide over 5% as profit dips; Manish Tiwary to succeed Narayanan as Chairman

In a day of major developments for Nestlé India, the FMCG major announced a top-level leadership change and reported a sharp decline in quarterly profits, leading to a steep drop in its stock price.

The company’s shares tanked over 5% on Thursday after it reported a 13.4% year-on-year decline in consolidated net profit to ₹646.59 crore for the April–June quarter of FY26. The fall was attributed to elevated commodity prices and rising operational costs linked to recent manufacturing expansion. The revenue from product sales rose 5.86% to ₹5,073.96 crore from ₹4,792.97 crore a year earlier.

“This quarter was impacted by elevated consumption prices across the commodity portfolio. In addition, we witnessed higher operations costs as a result of significant expansion in manufacturing in the last seven to eight months,” said Chairman and Managing Director Suresh Narayanan. On the Bombay Stock Exchange, Nestlé India shares settled 5.41% lower at ₹2,320.15, with its market capitalisation falling by ₹12,789 crore to ₹2.23 lakh crore.

Amid this, the board of Nestlé India also approved the appointment of Manish Tiwary as the new Chairman and Managing Director, effective August 1, 2025, as part of a planned leadership transition. Tiwary, an Amazon veteran, is currently serving as MD-designate and was inducted into the board earlier this year.

Narayanan, who will retire on July 31, 2025, played a pivotal role during the company’s recovery from the Maggi crisis and has led Nestlé India through a decade of growth and transformation. “As I conclude my tenure… I extend my heartfelt thanks to our partners, distributors, retailers and suppliers… I am confident Nestlé India will continue to achieve new heights,” he said.

Tiwary has been appointed for a five-year term until July 31, 2030, and brings with him deep experience from his tenure at Amazon and a strong understanding of the Indian consumer market.

According to media reports, the succession plan and Q1 earnings update mark a critical turning point for Nestlé India as it prepares for its next phase of growth amid macroeconomic challenges and evolving consumer dynamics.