FMCG major Nestlé India paid ₹1,024.5 crore in royalty and license fees to its Switzerland-based parent, Societe des Produits Nestlé S.A., during FY26, marking a 13.9% increase from the previous financial year, according to the company’s latest annual report.
The company also paid ₹102.47 crore as withholding tax on these license fees during the year ended March 31, 2026. In comparison, Nestlé India had paid ₹899.41 crore in royalty and ₹89.71 crore in withholding tax in FY25.
Nestlé India pays a royalty equivalent to 4.5% of its net sales to its parent company in exchange for access to the Nestlé Group’s technology, intellectual property, product formulations, innovations and manufacturing know-how. The company said it continues to benefit from technological advancements and research developed across Nestlé’s global operations through its General License Agreements.
The disclosure comes nearly two years after shareholders voted against a proposal to gradually increase the royalty rate by 0.15 percentage points annually over five years, which would have raised the payment to 5.25% of net sales. The proposed increase, scheduled to take effect from July 1, 2024, failed to secure the required shareholder approval.
According to the annual report, there were no material changes to the terms and conditions of the General License Agreements during FY26.
Nestlé India reported strong business growth during the fiscal, with revenue from operations rising 14.2% year-on-year to ₹23,071.46 crore. The company markets several leading brands in India, including Maggi, Nescafé, KitKat, Milkmaid and Cerelac.
The company’s promoter entities, Nestlé S.A. and Maggi Enterprises Ltd, together held a 62.76% stake in Nestlé India as of March 31, 2026.
Nestlé India also reported a marginal decline in its permanent workforce, with employee strength standing at 8,382 at the end of FY26, compared with 8,419 in FY25. Despite the reduction, the company continues to expand its manufacturing footprint and is currently setting up its tenth factory in India.
Employee compensation also witnessed an increase during the year. The median remuneration of employees rose by 7.3% in FY26, compared with a 4.9% increase in the previous fiscal year.
The annual report further noted that the remuneration ratio of Chairman and Managing Director Manish Tiwary to the median employee stood at 134:1. Tiwary assumed charge as Chairman and Managing Director on August 1, 2025.