Nestlé India shares decline 3% as FSSAI initiates legal action against FMCG firm

FSSAI alleged non-compliance with food safety norms in three infant nutrition products of Nestlé India. According to FSSAI, it examined NAN Excella Pro Stage 1, Lactogen Pro 1, and a follow-up formula along with their promotional material available on e-commerce platforms.

In NAN Excella Pro Stage 1, the regulator flagged claims relating to “5HMOs” and “Whey Protein,” while in Lactogen Pro 1, it observed a claim describing “Whey Protein” as easy to digest, the regulator said in a social media post.

FSSAI said it had sought clarifications from Nestlé India on these claims.

Both the products were found to be in contravention of Regulation 4(2) of the Food Safety and Standards (Foods for Infant Nutrition) Regulations, 2020, which restrict promotional claims or material aimed at increasing the saleability of infant foods, as well as Section 3 of the Infant Milk Substitutes, Feeding Bottles and Infant Foods (Regulation of Production, Supply and Distribution) Act, 1992, which bars the advertisement or promotion of such products.

Separately, a sample of a follow-up formula manufactured by Nestlé India was found to be substandard for Biotin content during laboratory analysis. The sample was sent for re-analysis, and the referral laboratory also found it non-conforming with the Biotin requirement prescribed under the 2020 regulations.

In light of these findings, FSSAI has filed three separate adjudication cases against Nestlé India in respect of the three products, it added.

How these segments perfomed in Q1 FY27

In Q1 FY27, the food and beverage company’s milk products and nutrition group had recorded strong, broad-based performance built on underlying volume growth across key brands and channels.

The company had also informed that its science-based portfolio of nutritional products for infants continued to deliver sequentially strengthening performance.

The powdered and liquid beverages group had clocked strong, broad-based performance built on underlying volume growth across key brands and channels in the June quarter of FY27.

Nestlé India had recorded a standalone net profit of ₹975.12 crore during Q1 FY27, marking a 47.92% year-on-year (YoY) surge from ₹659.23 crore in the first quarter of the 2025-26 fiscal year (Q1 FY26).

Its revenue from operations jumped 25.16% YoY to ₹6,378.18 crore in Q1 FY27, as against ₹5,096.16 crore in the April-June period of FY26, according to a regulatory filing.

Nestle India share price

At 1:43 AM, Nestlé India shares were trading at ₹1,351.70 apiece on the National Stock Exchange, falling 1.38%.

From the beginning of the year, Nestlé India shares have climbed 4%. Over a month’s time, the stock has slipped 7.5%, while for a six-month period, it has surged 12%.

Shares of the firm had hit a 52-week high of ₹1,553 on August 7, 2026, and a 52-week low of ₹1,145 on October 1, 2025.

According to NSE data, as of September 18, 2026, Nestlé India has a total market capitalisation of ₹2.61 lakh crore.