Nestle India shares extended their losses on Friday after plunging nearly 8 percent in the previous session following the company's fiscal second quarter earnings. Brokerage HSBC maintained its 'Hold' rating on the stock with a target price of Rs 1,480, implying an upside of around 16 percent from Thursday's closing price. It cautioned that revenue growth could moderate in the second half of FY27.
Nestle India shares declined 1.05 percent to Rs 1,262.40 in early trade on Friday, extending Thursday's 7.8 percent slump. Despite the sharp two-day decline, the stock remained down just 1.5 percent so far in 2026, significantly outperforming the Nifty 50, which has fallen around 12 percent during the same period. The company's market capitalisation stood at Rs 2.46 lakh crore.
HSBC said that Nestle India's revenue grew around 20 percent year-on-year in the July-September quarter, broadly in line with estimates, while its two-year revenue compound annual growth rate (CAGR) stood at 15 percent. EBITDA exceeded consensus expectations by approximately 3 percent.
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The brokerage highlighted sequential improvement in Nestle India's nutrition business, while chocolates and coffee continued to deliver strong performance. However, HSBC cautioned that the company's growth momentum could moderate in the second half of the financial year.