Nestlé India shares dropped by 3% following legal action initiated by the Food Safety and Standards Authority of India (FSSAI) due to concerns over the quality and promotional claims of some infant nutrition products. This move comes after laboratory tests found a follow-up formula produced by Nestlé India to be substandard in Biotin content.
- FSSAI found non-compliance in three infant nutrition products by Nestlé India.
- Claims about "5HMOs" and "Whey Protein" were flagged as misleading.
- A follow-up formula was found deficient in Biotin content after re-analysis.
- FSSAI filed three adjudication cases against Nestlé India.
- Nestlé India’s shares declined 3% but have risen 4% since the start of the year.
What products did FSSAI examine for compliance?
FSSAI examined three infant nutrition products from Nestlé India: NAN Excella Pro Stage 1, Lactogen Pro 1, and a follow-up formula. The regulator also reviewed promotional materials for these products available on e-commerce platforms.
What issues did FSSAI find with these products?
FSSAI flagged claims related to "5HMOs" and "Whey Protein" in NAN Excella Pro Stage 1. For Lactogen Pro 1, the claim that "Whey Protein" is easy to digest was questioned. These claims were found to violate Regulation 4(2) of the Food Safety and Standards (Foods for Infant Nutrition) Regulations, 2020, which restrict promotional claims aimed at increasing sales of infant foods. Additionally, these claims breached Section 3 of the Infant Milk Substitutes, Feeding Bottles and Infant Foods Act, 1992, which prohibits advertising or promoting such products.
What was the issue with the follow-up formula?
A sample of the follow-up formula was found to be substandard in Biotin content during laboratory testing. After a referral laboratory re-analyzed the sample, it confirmed the product did not meet the Biotin requirements set by the 2020 regulations.
What legal actions has FSSAI taken?
In response to these findings, FSSAI has filed three separate adjudication cases against Nestlé India, each corresponding to one of the products under scrutiny.
How has Nestlé India performed financially despite these issues?
In the first quarter of the fiscal year 2027 (Q1 FY27), Nestlé India reported strong financial results. The company’s milk products and nutrition group showed broad-based volume growth across key brands and channels. The powdered and liquid beverages group also performed well during this period.
Nestlé India recorded a standalone net profit of ₹975.12 crore in Q1 FY27, a 47.92% increase compared to ₹659.23 crore in the same quarter of the previous year. Revenue from operations rose 25.16% year-on-year to ₹6,378.18 crore.
How have Nestlé India’s shares reacted recently?
Following the FSSAI announcement, Nestlé India shares traded at ₹1,351.70 on the National Stock Exchange, down 1.38%. Despite this decline, the shares have increased by 4% since the start of the year. Over the past month, the stock has fallen 7.5%, but it has gained 12% over six months.
The company’s 52-week high was ₹1,553 on August 7, 2026, and the 52-week low was ₹1,145 on October 1, 2025. As of September 18, 2026, Nestlé India’s market capitalization stood at ₹2.61 lakh crore.
Frequently Asked Questions
Q: What regulations did Nestlé India allegedly violate?
A: Nestlé India allegedly violated Regulation 4(2) of the Food Safety and Standards (Foods for Infant Nutrition) Regulations, 2020, and Section 3 of the Infant Milk Substitutes, Feeding Bottles and Infant Foods Act, 1992, which restrict promotional claims and advertising of infant nutrition products.
Q: What is Biotin, and why is it important in infant formulas?
A: Biotin is a B-vitamin essential for healthy growth and development. It plays a key role in metabolism and maintaining healthy skin and hair. Adequate Biotin levels in infant formulas are crucial to meet nutritional requirements.
Q: How has Nestlé India responded to FSSAI’s findings?
A: The article does not provide details on Nestlé India’s response to the FSSAI’s legal action or findings.
