Risk Reward Update

Research evidence excerpt

Risk Reward Update

UpdateM

Risk Reward – Nestle India Ltd (NEST.NS)

KEY EARNINGS INPUTS

Drivers Mar 2026 Mar 2027e Mar 2028e Mar 2029e

Revenue growth - Milk products (%) 0.8 7.1 5.0 5.0

Revenue growth - Prep Food (%) 17.3 19.3 15.1 15.1

Revenue growth - Chocolate and

33.3 20.5 15.1 15.1

confectionary (%)

Revenue growth - Soluble beverage

26.0 18.4 15.1 15.1

powders (%)

INVESTMENT DRIVERS RISKS TO PT/RATING MS ESTIMATES VS. CONSENSUS

Acceleration in introduction of new products RISKS TO UPSIDE FY Mar 2028e

within the nascent packaged foods industry Faster innovation and forays into new sub-

Managing medium-term cost pressures and categories within the F&B segment Sales / 298,040

margins on new products Market share gains across key brands Revenue Note: There are not sufficient brokers supplying

Operating leverage, driven by pricing power and Increase in penetration and category growth (Rs, mn) consensus data for this metric

robust top-line growth for infant nutrition

RISKS TO DOWNSIDE

GLOBAL REVENUE EXPOSURE Sharp macroeconomic slowdown affecting 70,960 EBITDA

growth in the packaged food industry, infant (Rs, mn) Note: There are not sufficient brokers supplying

nutrition in particular consensus data for this metric

100% India Sharp rise in input prices

OWNERSHIP POSITIONING 45,794

Net income

Source: Morgan Stanley Research Estimate

View explanation of regional hierarchies here Inst. Owners, % Active 77.8% (Rs, mn) Note:consensusThere dataare notforsufficientthis metricbrokers supplying

Source: Refinitiv, Morgan Stanley Research

MS ALPHA MODELS

23.75

EPS

3/5 3 Month Note: There are not sufficient brokers supplying

MOST Horizon (Rs) consensus data for this metric

Source: Refinitiv, FactSet, Morgan Stanley Research; 1 is