The Food Safety and Standards Authority of India (FSSAI) flagged a low‑fat dairy whitener from Nestle India as unsafe after lab tests at Lalit hotel in New Delhi.
Nestle India spokesperson said the product met all applicable regulations, citing natural phosphorus content; the company shared data with regulators to demonstrate compliance.
Shares slid 1.4% on the NSE that afternoon, the first dip since the company’s 2025 earnings beat.
Analysts from ABC Capital warn the safety scare could dent the company’s retail sales, estimating a 0.5% hit to Q4 revenue.
Nestle India remains on track to meet its 2026 debt‑free target, with guidance unchanged; investors monitor whether the incident will prompt additional regulatory scrutiny.