Shares of Nestlé India Ltd came under pressure after reports said the Food Safety and Standards Authority of India (FSSAI) had issued a notice to the company over a complaint alleging the presence of insect larvae in a packet of Maggi noodles.
The stock fell around 4 percent during the session, touching an intraday low of ₹1,370, compared with the previous close of ₹1,421.75.
Nestlé India has a market capitalisation of about ₹2.65 lakh crore.
What triggered the decline?
According to ANI, FSSAI issued a notice to Nestlé India after taking cognisance of a complaint shared on social media.
The complaint alleged that insect larvae were found in a Maggi packet.
Further clarification from both the regulator and the company was awaited.
Other companies also receive notices
ANI reported that FSSAI had sent notices to several other companies as well.
These include:
- KFC, over an alleged hygiene issue.
- Flipkart India.
- Open Secret, following complaints about insects allegedly being found in a dates product.
The regulator reportedly acted after complaints surfaced on social media.
Echoes of the 2015 Maggi controversy
This is not the first time Maggi has faced regulatory scrutiny.
In 2015, tests conducted by FSSAI and some state authorities reportedly found elevated levels of lead and monosodium glutamate (MSG) in certain Maggi noodle samples.
The findings led to a nationwide ban and product recalls.
Nestlé India maintained throughout that Maggi was safe and complied with food regulations.
After several months of testing and legal proceedings, the ban was lifted later in 2015 after court orders and laboratory results cleared the product for consumption.
The episode triggered wider debate over food safety standards and led to tighter regulatory oversight of packaged foods.
March quarter performance
Nestlé India’s revenue rose to ₹6,748 crore in March 2026 from ₹5,504 crore a year earlier.
Net profit increased to ₹1,114 crore, compared with ₹885 crore in the corresponding period.
Financial highlights:
- Revenue: ₹6,748 crore vs ₹5,504 crore
- Net profit: ₹1,114 crore vs ₹885 crore
- ROE: 73.2%
- Three-year average ROE: 92.3%
- ROCE: 84.1%
- Debt-to-equity ratio: 0.08
- Dividend payout ratio: 74.3%
About Nestlé India
Nestlé India Ltd, a subsidiary of Switzerland-based Nestlé S.A., was established in 1961.
The company manufactures and sells products across categories such as:
- Dairy products
- Beverages
- Infant nutrition
- Confectionery
- Culinary products
Its brands include:
- Maggi
- Nescafé
- KitKat
- Milo
Nestlé India operates multiple manufacturing facilities and has an extensive distribution network across the country.
TL;DR:
Nestlé India shares fell after reports said FSSAI issued a notice over a complaint alleging insect larvae in a Maggi packet. ANI also reported that notices were sent to KFC, Flipkart India and Open Secret following separate complaints. Further clarification is awaited.
AI summary
- Nestlé India shares declined after reports of an FSSAI notice.
- The complaint alleged insect larvae in a Maggi packet.
- ANI reported notices to KFC, Flipkart India and Open Secret as well.
- Further responses from the companies and regulator are awaited.
- Nestlé India’s March-quarter revenue and profit rose year-on-year.
