Nestlé India Shares Fall 3% After FSSAI Initiates Legal Action Over Infant Products

Nestlé India shares fell on Friday, September 18, after the Food Safety and Standards Authority of India (FSSAI) said it had initiated legal action against the company over promotional claims on two infant nutrition products and a separate finding of substandard Biotin content in another formula.

The stock fell as much as 2.85% to ₹1,332.80 on the BSE. By 1:43 pm, shares were trading at ₹1,351.70 on the NSE, down 1.38%, after recovering from the day's low.

What FSSAI found

FSSAI said it examined NAN Excella Pro Stage 1, Lactogen Pro 1 and a follow-up formula manufactured by Nestlé India, along with promotional material available on e-commerce platforms.

In NAN Excella Pro Stage 1, the regulator flagged claims relating to “5 HMOs” and “Whey Protein”. In Lactogen Pro 1, it raised concerns over a claim describing Whey Protein as easy to digest.

FSSAI said it sought clarifications from Nestlé India on the claims.

The regulator said both products were found to be in contravention of Regulation 4(2) of the Food Safety and Standards (Foods for Infant Nutrition) Regulations, 2020. The regulation restricts promotional claims or material intended to increase the saleability of infant foods.

FSSAI also cited Section 3 of the Infant Milk Substitutes, Feeding Bottles and Infant Foods (Regulation of Production, Supply and Distribution) Act, 1992, which prohibits the advertising and promotion of such products.

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

Based on these findings, FSSAI said it had filed three separate adjudication cases against Nestlé India in relation to the three products.

Nestlé India Stock Performance

Nestlé India shares have seen mixed performance across different time periods. The stock had touched a 52-week high of ₹1,553 on August 7, 2026, while its 52-week low stood at ₹1,145.10, recorded on October 1, 2025.

The stock's recent decline comes after a period of gains over the longer term. As of September 18, 2026, Nestlé India had a market capitalisation of around ₹2.61 lakh crore, according to NSE data.

Nestlé India Q1 FY27 Performance

The FSSAI action comes after Nestlé India reported strong financial performance in the June quarter.

In Q1 FY27, the company's milk products and nutrition business recorded broad-based performance, supported by underlying volume growth across key brands and channels. Nestlé India also said its science-based infant nutrition portfolio delivered sequentially strengthening performance during the quarter.

The company's powdered and liquid beverages business also recorded broad-based performance, supported by underlying volume growth across key brands and channels.

Nestlé India reported a standalone net profit of ₹975.12 crore in Q1 FY27, up 47.92% year-on-year from ₹659.23 crore in Q1 FY26.

Revenue from operations rose 25.16% year-on-year to ₹6,378.18 crore, compared with ₹5,096.16 crore in the April-June quarter of FY26, according to a regulatory filing.

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