HUL and Nestlé India have delivered sharply different profit growth in the September quarter, setting up a fresh battle for investors choosing between two of India’s biggest FMCG stocks.
The September-quarter results of the two consumer goods giants present investors with different numbers to weigh. While Nestlé India reported faster year-on-year growth in both profit and revenue, HUL reported a much larger absolute profit and declared an interim dividend. Here’s how the two stocks compare across five key parameters and what investors should consider before choosing between them.
But which FMCG stock offers the stronger combination of earnings growth, revenue momentum and shareholder returns?
1. Net profit: Nestlé India wins on growth, HUL on absolute earnings
Nestlé India reported a 35.9% year-on-year increase in consolidated net profit to ₹1,009.6 crore for the quarter ended September 2026. Its standalone net profit rose 36.2% to ₹1,026.8 crore.
In comparison, HUL reported a 6% year-on-year increase in net profit to ₹2,844 crore for the September quarter. The company also exceeded Street estimates of ₹2,777 crore.
On profit growth, Nestlé India clearly outpaced HUL during the quarter. However, HUL remained ahead in absolute earnings, reporting a quarterly profit nearly three times that of Nestlé India’s consolidated net profit.
For investors comparing the latest earnings momentum, Nestlé India recorded the faster growth. HUL, meanwhile, continued to generate a substantially higher amount of quarterly profit.
2. Revenue growth: Nestlé India takes the lead
Revenue growth was another area where Nestlé India outperformed HUL.
Nestlé India’s revenue from operations increased 20.3% year-on-year to ₹6,788.3 crore in the September quarter. Total sales rose 20.5% to ₹6,782.2 crore, while domestic sales increased 20.4%.
HUL’s revenue from operations grew 6% to ₹17,543 crore. The company reported underlying volume growth of 7% and underlying sales growth of 15%, its highest in 14 quarters.
The difference in reported revenue growth gives Nestlé India the edge on this parameter. However, HUL’s underlying sales growth of 15% and volume growth of 7% also point to improved momentum in its business.
3. Operating performance: What do the numbers show?
Nestlé India reported an EBITDA margin of 23.8% during the quarter. The company also recorded broad-based growth across product groups, supported by double-digit volume growth.
However, rising costs remained a concern. Its advertising and marketing expenditure increased 46% as the company stepped up investments in its brands.
Nestlé India Chairman and Managing Director Manish Tiwary flagged the pressure from rising food inflation and commodity costs. “Rising inflation, particularly food inflation, is a reality,” he said, adding that the company would focus on innovation, productivity improvements and operational efficiencies to mitigate these pressures.
Meanwhile, for HUL, EBITDA stood at ₹4,089 crore, marginally exceeding estimates, although the operating margin contracted 140 basis points year-on-year to 22.4%.
HUL also highlighted the importance of volume-led growth. Its CEO and Managing Director Priya Nair said the underlying volume growth of 7% reflected sustained momentum driven by the company’s focus on brands and distribution.
Both companies reported growth across their businesses, although Nestlé India recorded stronger consolidated revenue growth and a 23.8% EBITDA margin.
4. Dividend: HUL declares ₹19 per share
For investors looking at dividend income, HUL has a clear announcement from the September quarter.
The company declared an interim dividend of ₹19 per equity share of face value Re 1 for the financial year ending March 31, 2027. The record date was fixed for November 12, 2026, and the dividend was scheduled to be paid on November 25, 2026.
The Nestlé India results report did not announce a corresponding dividend. Therefore, based on these two quarterly results, HUL stands out for its declared interim payout.
HUL vs Nestlé India: Which stock should you buy?
HUL and Nestlé India have delivered strong sales growth, but brokerages are divided on how much of this momentum can translate into sustainable earnings and stock returns.
Macquarie maintained a ‘Neutral’ rating on Nestlé India but cut its target price to ₹1,570 from ₹1,575. It lowered its FY27, FY28 and FY29 earnings-per-share estimates by 4-5% each, citing inflationary pressures and commodity-market volatility. Morgan Stanley retained its ‘Equal-weight’ rating, with a target price of ₹1,538. While acknowledging strong sales momentum and an earnings beat, it flagged rising food inflation as a challenge and considered the market’s negative reaction overdone.
For HUL, Morgan Stanley maintained an ‘Equal-weight’ rating with a target price of ₹2,480. It highlighted 15% underlying sales growth and 7% volume growth, but flagged a 142-basis-point year-on-year contraction in EBITDA margin to 22.6%.
Jefferies remained more optimistic, retaining its ‘Buy’ rating on HUL, although it cut its target price to ₹2,350 from ₹2,450. The brokerage pointed to 7% volume growth and strong performances in Home Care and Beauty & Wellbeing.
The verdict: HUL appears to have stronger brokerage support, particularly from Jefferies, on the back of its volume recovery. Nestlé India offers robust sales momentum, but inflation and valuation concerns remain key risks. Investors should compare their risk appetite, current market prices and investment horizon before deciding.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
