Nestlé India reported a significant increase in royalty payments to its Swiss parent company while delivering strong revenue growth in FY26, reflecting continued expansion across its food and beverage portfolio.
According to the company’s latest annual report, Nestlé India paid ₹1,024.5 crore as general licence fees (royalty) to Société des Produits Nestlé S.A. during the financial year ended March 31, 2026. This represents a 13.9% increase over the ₹899.41 crore paid in FY25.
In addition, the company paid ₹102.47 crore as withholding tax on royalty payments, compared with ₹89.71 crore in the previous financial year.
Royalty Linked to Technology and Intellectual Property Access
Nestlé India pays royalty under General Licence Agreements that provide access to the global Nestlé Group’s technology, intellectual property, product formulations, manufacturing expertise, and innovation platforms.
The royalty rate remains at 4.5% of net sales, following shareholders’ rejection last year of a proposal to gradually increase the rate by 0.15 percentage points annually over five years, which would have raised it to 5.25% of net sales.
The company stated in its annual report that there were no material changes in the terms and conditions of the General Licence Agreements during FY26.
Promoter entities Nestlé S.A. and Maggi Enterprises Ltd together held a 62.76% stake in Nestlé India as of March 31, 2026.
Revenue Surpasses ₹23,000 Crore
Nestlé India recorded robust business growth during FY26, with revenue from operations increasing 14.2% year-on-year to ₹23,071.46 crore.
The growth was supported by strong performance across the company’s portfolio of leading brands, including:
- Maggi
- Nescafé
- KitKat
- Milkmaid
- Cerelac
The company’s continued investment in product innovation, manufacturing expansion, and distribution networks contributed to the strong top-line performance.
Continued Investment in Manufacturing Capacity
Despite a slight decline in permanent employee numbers, Nestlé India continues to expand its manufacturing footprint.
The company reported 8,382 permanent employees during FY26, compared with 8,419 employees in FY25.
Nestlé India is currently investing in capital expenditure projects and is in the process of establishing its tenth manufacturing facility in India, reinforcing its long-term commitment to the Indian market.
Employee Compensation Trends
The annual report also highlighted improvements in employee remuneration.
The median employee remuneration increased by 7.3% in FY26, compared with a 4.9% increase in the previous financial year.
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Meanwhile, the remuneration ratio of Chairman and Managing Director Manish Tiwary to the median employee stood at 134:1.
Tiwary assumed the role of Chairman and Managing Director on August 1, 2025, succeeding the company’s previous leadership.
Balancing Growth and Shareholder Expectations
The latest financial results highlight Nestlé India’s continued growth trajectory in one of the world’s fastest-growing consumer markets. At the same time, the debate surrounding royalty payments to multinational parent companies remains a topic of interest among investors and governance experts.
With sales crossing ₹23,000 crore and further investments planned in manufacturing infrastructure, Nestlé India appears focused on strengthening its market position while leveraging the technological and innovation capabilities of the global Nestlé network.
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