Nestle India Announces First Bonus Share Issue Amid Revenue Growth

New Delhi, India – Nestle India has scheduled August 8 as the record date for its first-ever 1:1 bonus share issue. This historic move aims to increase investor participation and improve market liquidity.

Shareholders who hold shares on the record date will receive one additional share for each share they own. Nestle’s decision comes as the company reported a slight dip in profit for the first quarter of fiscal year 2026, even as revenue increased by 6%, reaching Rs 5,096 crore.

The company stated that the bonus share issuance aims to double the number of equity shares, making them more accessible to small investors. Analysts consider this move a signal of Nestle’s strong financial health and management’s confidence in future growth.

For instance, an investor with 50 shares will see that number double to 100 shares after the issue, although their total investment value remains unchanged as the share price adjusts accordingly. The last day to purchase shares to qualify for the bonus was August 7, according to SEBI‘s T+1 settlement system.

This marks Nestle India’s first bonus share announcement, responding to historical challenges that have limited retail investor participation due to high share prices relative to competitors in the fast-moving consumer goods (FMCG) sector.

Despite the increase in operational revenue, Nestle’s profit after tax for Q1FY26 was Rs 647 crore, representing a 13.4% decrease from Rs 747 crore in the same quarter the previous year. This data highlights the company’s recent performance amidst challenging market conditions.