Synopsis: Nestlé India shows stronger profitability and premium valuation, while Britannia posts higher recent returns with moderate debt, offering more affordable growth potential for investors.
Nestlé India and Britannia Industries, two leading FMCG players, dominate India’s packaged foods and confectionery market. Both companies boast strong brands, robust growth, and consistent profitability, making them closely watched by investors. While Nestlé commands a premium valuation, Britannia offers attractive returns with moderate leverage, reflecting differing investment profiles.
The comparison evaluates both companies’ Q3 performance through revenue, EBDIT, and net profit growth on a QoQ and YoY basis, alongside key financial ratios like P/E, ROE, ROCE, debt-to-equity, and PEG, highlighting profitability, valuation, and growth potential.
Stock Performance
With a market capitalization of Rs 2,47,315 crore, Nestle India Ltd’s shares closed at Rs 1,282.55 per share, down by 1.73 percent from its previous day’s close price. The shares of this company have given a 17 percent return over the last year and a 48 percent return over the last five years. Followed by a dividend yield of 1.25 percent, its shares are trading 4.46 percent below its 52-week high
Where, with a market capitalization of Rs 1,44,030 crore, Britannia Industries Ltd’s shares closed at Rs 5,979.65 per share, down by 2.08 percent from its previous day’s close price. The shares of this company have given a22 percent return over the last year and a 75 percent return over the last five years. Followed by a dividend yield of 1.02 percent, its shares are trading 6 percent below its 52-week high.
Q3 performance comparison
QoQ View: The revenue of Nestle India stayed flattish at Rs 5,667 crore in Q3 FY26 from Rs 5,644 crore in Q2 FY26, and EBDIT declined by 2.8 percent to Rs 1,202 crore in Q3 FY26 from Rs 1,237 crore in Q2 FY26. Accompanied by a net profit growth of 35 percent to Rs 1,018 crore in Q3 FY26 from Rs 753 crore in Q2 FY26.
YoY View: The revenue of Nestle India grew by 19 percent to Rs 5,667 crore in Q3 FY26 from Rs 4,780 crore in Q3 FY25, and EBDIT grew by 9 percent to Rs 1,202 crore in Q3 FY26 from Rs 1,103 crore in Q3 FY25. Accompanied by a net profit growth of 27 percent to Rs 1,018 crore in Q3 FY26 from Rs 696 crore in Q3 FY25.
QoQ View: The revenue of Britannia Industries grew by 36 percent to Rs 4,970 crore in Q3 FY26 from Rs 4,841 crore in Q2 FY26, and EBDIT grew by 2.8 percent to Rs 977 crore in Q3 FY26 from Rs 951 crore in Q2 FY26. Accompanied by a net profit growth of 4 percent to Rs 682 crore in Q3 FY26 from Rs 655 crore in Q2 FY26.
YoY View: The revenue of Britannia Industries grew by 8 percent to Rs 4,970 crore in Q3 FY26 from Rs 4,593 crore in Q3 FY25, and EBDIT grew by 16 percent to Rs 977 crore in Q3 FY26 from Rs 843 crore in Q3 FY25. Accompanied by a net profit growth of 17 percent to Rs 682 crore in Q3 FY26 from Rs 582 crore in Q3 FY25.
Ratio Analysis
Nestlé India trades at a premium P/E of 79.1x versus the industry’s 55.1x, reflecting strong investor confidence. The company demonstrates robust profitability with an ROE of 83 percent and ROCE of 95.7 percent, with a debt-to-equity of 0.10, and a high PEG of 7.48.
Britannia Industries Ltd trades at a P/E of 60, slightly above the industry’s 55.1x, reflecting strong market confidence. The company posts a healthy ROE of 52.9 percent and ROCE of 53.5 percent, with a debt-to-equity of 0.59 and a PEG ratio of 4.64.
Popular Brands owned
Nestle India boasts well-known brands such as Nescafé, Maggi, KitKat, and Milkmaid, while Britannia Industries holds popular names like NutriChoice, Good Day, Little Hearts, along with a range of rusks and cakes, making both companies leaders in India’s packaged foods and confectionery market.
Shareholding Pattern
As of December 2025, Nestlé India’s shareholding pattern remained largely stable, with promoters holding 62.76 percent. FIIs reduced their stake slightly to 9.81 percent from 10.27 percent last year, while DIIs increased to 12.10 percent from 10.80 percent. Public shareholding marginally declined to 15.31 percent, reflecting steady institutional and promoter confidence.
As of December 2025, Britannia Industries’ promoters hold a steady 50.55 percent stake. Foreign institutional investors (FIIs) reduced their holdings to 14.88 percent from 16.46 percent last year, while domestic institutional investors (DIIs) increased theirs to 19.55 percent from 10.80 percent. Public shareholding slightly declined to 14.97 percent from 15.41 percent, reflecting stable promoter control and shifting institutional interest.
Nestle India: Prepared Dishes and Cooking Aids recorded robust traction in Q3 FY26, led by MAGGI Noodles posting double-digit volume growth. The new “Me & Maggi, So Good Together” campaign supported urban demand, while rural penetration improved through calibrated price packs. Masala-ae-Magic strengthened household penetration, and the value-added spicy and Double Masala variants gained momentum.
Milk Products, Confectionery, and Beverages delivered broad-based growth. MILKMAID sustained strong momentum, EVERYDAY recovered in key regions, and toddler nutrition gained market share. KITKAT and MUNCH achieved double-digit volume growth, supported by festival and premium launches. NESCAFÉ brands expanded category adoption, adding over 4.1 million households, while Ready-To-Drink coffee grew strongly.
Britannia Industries Ltd: NutriChoice strengthened its health positioning with a new campaign featuring Aamir Khan, enhancing brand visibility. Little Hearts continued to perform well, supported by focused marketing. Good Day Crafted gained traction in premium cookies, with increased emphasis in modern trade and larger general trade channels, reinforcing premium portfolio growth.
Adjacency portfolio momentum: Cake, Rusk, Croissant, and Wafers delivered double-digit growth, with e-commerce contribution nearly three times that of biscuits; Dairy remained mixed, as Cheese saw marginal growth while Ghee, Milk Drinks, and Dairy Whitener outpaced the segment.
In Q3 FY26, Nestlé India delivered a strong year-on-year growth, with revenue rising 19 percent and net profit up 27 percent, reflecting robust demand and efficient operations. However, quarter-on-quarter, the performance remained largely flat, indicating a temporary plateau after previous strong quarters.
Britannia Industries, in contrast, posted steady growth, with revenue and net profit increasing gradually in both QoQ and YoY comparisons, highlighting consistent operational momentum without sharp fluctuations.
Overall, while Nestlé showed disruptive YoY growth but flat QoQ performance, Britannia demonstrated gradual, steady expansion, making it a more stable performer, whereas Nestlé’s premium valuation reflects higher profitability and investor confidence.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
