Nestle India Pays ₹1,024.5 Crore in Royalty Fees to Swiss Parent Company for FY26

Nestle India paid ₹1,024.5 crore as general licence fees to its Switzerland-based parent entity, Société des Produits Nestlé S.A., during FY26, according to the company's annual report.  

The payment was 13.91% higher than ₹899.41 crore paid in FY25. The company also paid ₹102.47 crore as withholding tax on these licence fees, compared with ₹89.71 crore in the previous financial year. 

Licence Agreements Remain Unchanged 

The company uses the Nestlé Group's technology and intellectual property under general licence agreements covering the manufacture and sale of its products in India.  

Under the existing arrangement, Nestle India pays royalty at 4.5% of net sales. The annual report stated that there were no material changes to the terms and conditions of these agreements during the year ended March 31, 2026. 

Revenue Growth and Shareholding 

Nestle India's revenue from sales rose 14.2% year-on-year to ₹23,071.46 crore in FY26. Its product portfolio includes brands such as Maggi, Nescafé, KitKat, MILKMAID, and Cerelac.  

As of March 31, 2026, promoter entities Nestlé S.A. and Maggi Enterprises Ltd together held a 62.76% stake in the company. 

Employee Data and Expansion 

The number of permanent employees stood at 8,382 in FY26, compared with 8,419 a year earlier. The company is continuing capital expenditure and is setting up its 10th manufacturing facility in India.  

Median employee remuneration increased by 7.3% during the financial year, while the remuneration ratio of Chairman and Managing Director Manish Tiwary to employees was reported at 134:1. 

Read More: Institutional Buying Fuels ₹15,000 Crore Block Deals in Adani Group Stocks! 

Nestle India Share Price Performance  

As of June 8, 2026, 1:31 pm, Nestle India share price was trading at ₹1,404.90, a 1.35% increase from the previous closing price. 

Conclusion 

Last year, shareholders rejected a proposal to gradually increase the royalty payment to 5.25% of net sales over five years from July 2024. As a result, the existing royalty rate of 4.5% remains in place, with no material modifications to the licence agreements reported during FY26. 

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