Nestle India shares in focus as board to consider bonus issue on June 26

Shares of FMCG major Nestle India will be in focus on Friday after the company announced that its board will meet on June 26, 2025, to consider and approve a proposal for issuing bonus shares. In light of this, the trading window for dealing in the company’s securities will remain closed from June 19 to June 28.

The proposed bonus issue is expected to improve liquidity and attract greater retail investor participation.

Nestle India disclosed the board meeting update after market hours on Thursday. The stock closed at Rs 2,313.30 on the NSE, down 1.17% or Rs 27.50 from the previous day’s close.

Meanwhile, Nestle India and IndusInd Bank are set to be removed from the BSE Sensex on June 23 as part of the index’s semi-annual rebalancing. They will be replaced by Trent and Bharat Electronics, which recently gained traction following their inclusion in the Nifty50 index.

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For the March quarter, Nestle India reported a 5.2% year-on-year (YoY) decline in standalone net profit to Rs 885 crore, while revenue from operations rose 4.5% YoY to Rs 5,504 crore. Both figures slightly exceeded analyst estimates.
Total and domestic sales grew 3.7% and 4.2%, respectively, with the company highlighting broad-based growth in domestic sales.
In its earnings outlook, Nestle India said commodity prices remain firm for coffee, while cocoa prices—though slightly corrected—continue to stay elevated. Prices for edible oils are stable, while milk prices have risen cyclically with the onset of summer.
For FY25, the powdered and liquid beverages category was the top contributor, delivering high double-digit growth. The confectionery segment also performed well, registering high single-digit growth in both value and volume, driven primarily by KITKAT, for which India is the second-largest market globally.

Nestle India shares have underperformed broader markets, falling 8% over the past year. In 2025 so far, the stock is up around 7%. By comparison, the Nifty has delivered over 5% returns in the past 12 months and 4.4% year-to-date.

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