HUL vs Nestlé vs Tata Consumers How 3 FMCG Giants Fared in Q4FY25 Results

India’s top FMCG players Hindustan Unilever (HUL), Nestlé India, and Tata Consumer Products released their Q4FY25 results recently. While the companies reported sales growth despite persistent commodity inflation, margin pressures and cautious forward-looking commentary weighed on investor sentiment.

Shares of all three companies saw some selling pressure post-results, even though the earnings were broadly in line with expectations.

Topline Performance: Sales Growth Across the Board

HUL reported a 3% growth in total sales, reaching ₹15,513 crore in Q4FY25, supported by a 2% underlying volume growth. Key segments such as Home Care, Food, and Beauty grew in low single digits, reflecting tepid demand recovery.

Nestlé India posted a 3.6% year-on-year (YoY) rise in sales to ₹5,447 crore. Growth was led by the Food and Confectionery segment, where 3 out of 4 product categories witnessed strong double-digit growth for FY25. The Beverages division (primarily powdered and liquid beverages) remained a major revenue driver.

Tata Consumer Products outperformed its peers in topline growth, with revenues jumping 17.35% YoY to ₹4,608 crore. Growth was broad-based across India Beverages (+9%), India Foods (+27%), and new-age businesses like Tata Sampann and RTD (Ready-to-Drink) categories.

Operational Performance: Margin Pressures Hit Hard

HUL’s EBITDA grew a modest 0.9% YoY to ₹3,466 crore, but EBITDA margins fell 30 basis points (bps) to 23.1% as commodity inflation and weak volume growth hurt profitability. Management warned that if inflation persists, margins could remain under pressure.

Nestlé India too faced margin headwinds, with EBITDA rising modestly to ₹1,388 crore. Higher raw material costs — particularly for coffee and cocoa — pushed expenses up, weighing on operating margins.

Tata Consumer Products saw the sharpest margin squeeze, with EBITDA margin declining by 250 bps to 13.6% in Q4FY25 compared to 16.1% a year earlier. The company’s consolidated EBITDA dipped 1% YoY to ₹625 crore, impacted by tea inflation in India and higher international input costs.

Profit Growth Mixed

HUL’s net profit rose 4% YoY to ₹2,493 crore despite margin pressures, supported by stable operational performance and tight cost controls.

Nestlé India reported a 5% YoY decline in net profit to ₹885 crore, mainly due to operating margin contraction.

Tata Consumer Products, however, surprised positively, with net profit jumping 52% YoY to ₹407 crore. The company benefited from strong revenue growth and some fair value gains recorded as exceptional items.

Strategic Updates and Dividend Announcements

HUL strengthened its portfolio with the acquisition of Minimalist, a leading beauty care brand. It also announced a final dividend of ₹24 per share and guided for an EBITDA margin range of 22–24% for FY26, expecting a better H1FY26 supported by portfolio transformation and macroeconomic recovery.

Nestlé India continued to expand its market leadership with NESCAFÉ, adding over 5.1 million households to the coffee category. It also launched CEREGROW — a no-refined-sugar product in the infant nutrition segment. A final dividend of ₹10 per share was declared.

Tata Consumer Products accelerated its new-age business strategy. Growth businesses (Tata Sampann, RTD, Soulfull, Capital Foods, Organic India) grew 66% in Q4FY25. However, margin improvement remains a key challenge for the company going forward.

Read More: ITC vs HUL: A Deep Dive into Dividend Yields History of 2 FMCG Majors.

Conclusion

Going into FY26, investors will closely watch these companies’ ability to manage commodity cost pressures, drive volume recovery, and execute their portfolio transformation strategies effectively.

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