Why did Nestle India crashes by 50% today? Here’s what you need to know

Synopsis:
Nestlé India shares fell over 50 percent on 8th August 2025, as they turned ex-bonus following a 1:1 bonus issue, causing a price adjustment per the announced corporate action.

During Friday’s trading session, shares of one of the leading companies operating in the food segment witnessed a sharp decline of more than 50 percent on the stock exchanges. What triggered this steep fall? Let’s break it down in this article.

What’s the News

Nestlé India had fixed Friday, 8th August 2025, as the record date to determine shareholder eligibility for the 1:1 bonus share issuance. As a result, the stock turned ex-bonus on the same date.

The significant drop in Nestlé India’s stock price is due to the shares turning ex-bonus, following a pre-announced corporate action. The company had declared a 1:1 bonus issue. The stock price has now adjusted accordingly, reflecting the bonus issuance.

As approved by the equity shareholders at the Extraordinary General Meeting held on 24th July 2025, the company issued bonus equity shares in a 1:1 ratio, meaning one fully paid-up bonus share of Re. 1 face value for every one existing fully paid-up equity share of Re. 1. Investors purchasing Nestlé India shares during Friday’s trading session will not be entitled to receive the bonus shares.

Previously, on 5th January 2024, the shares of Nestle India Ltd turned Ex-Split after the company announced a stock split of 1:10, where one equity share with a face value of Rs. 10 was split into 10 shares with a face value of Rs. 1.

Financial Performance

Nestle India reported a significant growth in revenue from operations, experiencing a year-on-year rise of nearly 6 percent, from Rs. 4,814 crores in Q1 FY25 to Rs. 5,096 crores in Q1 FY26. In contrast, the company’s net profit decreased during the same period from Rs. 747 crores to Rs. 659 crores, representing a decline of nearly 12 percent YoY.

Nestlé India Limited, one of the biggest players in the FMCG segment, is primarily involved in the food business, encompassing key product categories such as milk products and nutrition, prepared dishes and cooking aids, beverages (both powdered and liquid), and confectionery.

The company manufactures products under popular brands, including Nescafe, Maggi, Milkybar, Milo, Kit Kat, Bar-One, Milkmaid and Nestea. Nestlé India has a strong nationwide presence, supported by 8 manufacturing facilities and 4 branch offices located in Delhi, Mumbai, Chennai, and Kolkata, which play a vital role in driving its sales and marketing operations across the country.

Written by Shivani Singh

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