Nestle India Q3 Results: Mixed Brokerage Reviews on Stock Outlook, Target Prices

• Nestle India reported strong Q3 FY26 results with 18.5% revenue growth (Rs 5,667 crore) and 46% net profit jump (Rs 1,018 crore), aided by a one-time tax write-back.
• EBITDA grew 9% year-on-year, but margins narrowed due to a 42% surge in advertising and promotion (A&P) spending.
• Brokerages like Nomura maintained a 'Buy' rating with a target price of Rs 1,450, citing strong volume growth and sequential margin recovery.
• Others, including CLSA and Jefferies, maintained 'Hold' ratings with target prices of Rs 1,311 and Rs 1,300 respectively, acknowledging strong sales but expressing concerns over margin pressure from high A&P spends and rich valuations.
• The stock has returned over 15% in one year, outperforming Nifty 50, but analysts caution about near-term margin pressure and high valuations.

Why It Matters: Nestle India's strong Q3 performance led to mixed brokerage reviews due to margin pressure and high valuations.