Nestle India Q4 results: Revenue and net profit could see double-digit growth; focus on dividend and volume

Nestle India will announce its fourth quarter results on Tuesday, April 21. As per experts, Maggie maker could continue its strong business performance in the March quarter as well.

In the previous quarter, Nestle India delivered a strong performance with a 46% YoY surge in net profit to ₹1,018 crore, driven by a record 18.5% YoY rise in revenue to ₹5,667 crore due to strong volume growth. Meanwhile, the company reported revenue of ₹5,504 crore in Q4FY25 and net profit of ₹885 crore.

Experts believe Nestle India could report double-digit growth in revenue and net profit, led by high domestic volume growth. Revenue could rise by 12% to 14% YoY in the range of ₹6,230 to ₹6,370 crore, while net profit is estimated to increase by 11% to 14% YoY to ₹990 to ₹1010 crore.

Investors will look forward to management commentary, volume growth numbers and impact on margins because of higher raw material prices. The company is also expected to announce a final dividend for its shareholders.

Ahead of Q4 earnings, Nestle India shares closed flat at ₹1,285. So far this year, Nestle India shares have remained flat despite high volatility and sell-off in broader markets.

Technical outlook

Nestle India staged a strong rebound from the ₹1,160 zone, reclaiming its 20 and 50 EMA. This indicates improving short-term momentum. The stock is now approaching a key resistance near ₹1,300–₹1,320.

The RSI has moved above 60, suggesting strengthening bullish momentum. Sustaining above ₹1,300 could open the path towards ₹1,340. On the downside, ₹1,245 remains immediate support, and a hold above this level would keep the bullish bias intact.

Options outlook

Nestle India’s at-the-money (ATM) options for the 28 April expiry is positioned around the ₹1,290 strike, with both call and put premiums near ₹55. This implies an expected move of roughly ±4–4.3% from the recent closing levels.

To better understand this pricing, it helps to look at how the stock has historically reacted around its earnings announcements.

Options strategy for Nestle India

Nestle India’s options for the 28 April expiry are pricing in a potential move of roughly ±4–4.3%, offering traders a clear range to position based on their volatility outlook.

For traders expecting a sharp move, a long straddle could be a suitable strategy. This involves buying both the at-the-money call and put at the same strike and expiry. It benefits if the stock breaks decisively beyond the implied range.

On the other hand, if the expectation is for the stock to remain rangebound, a short straddle may be considered. In this case, selling both the ATM call and put allows traders to benefit if prices stay within the implied move and volatility cools off.

Disclaimer:

Derivatives trading must be done only by traders who fully understand the risks associated with them and strictly apply risk mechanisms like stop losses. The information is only for educational purposes. We do not recommend any particular stock, securities or strategies for trading. The stock names mentioned in this article are purely for showing how to do analysis. Take your own decision before investing.