Nestle India shares ended 1.4% lower at ₹1,353.10 on Friday following the announcement of FSSAI's legal action against the company. According to LatestLY, the stock had earlier rallied to an intraday high of ₹1,389, up over 1%, before reversing course. The stock has declined 14.2% from its record high of ₹1,553 touched on August 7, 2026, and has dipped below its long-term 200-day moving average (200-DMA) for the first time since April 09, 2026. Despite the recent decline, Nestle India shares continue to hold a near 6% gain for the calendar year 2026, outperforming the BSE Sensex which has declined 12.5% year-to-date. The recent performance has been mixed with the stock slipping 3% in the past week and 8% over the last month, while maintaining longer-term strength with 11.5% gains over six months and 11% advance in the past year.
The Food Safety and Standards Authority of India (FSSAI) has initiated three distinct adjudication cases against Nestle India over promotional claims and quality concerns linked to infant nutrition products. According to reports from ZeeBiz, Upstox, Business Standard, CNBC TV18, and FSSAI's official Instagram post, the regulator examined NAN Excella Pro Stage 1, Lactogen Pro 1, and a follow-up formula along with their promotional material available on e-commerce platforms. FSSAI has sought clarifications from Nestle India regarding these claims and found both products to be in contravention of the Food Safety and Standards (Foods for Infant Nutrition) Regulations, 2020, which restricts promotional claims or material intended to increase the saleability of infant foods. The action comes amid over 150 compliance notices issued by FSSAI recently across the FMCG sector as the regulator tightens labeling rules, with the crackdown occurring in the wake of increased regulatory scrutiny of food labelling and promotional claims.
FSSAI has identified specific promotional claims that violate regulatory standards for both infant nutrition products. For NAN Excella Pro Stage 1, the regulator found claims related to "5 HMOs" and "Whey Protein" that were found to be in contravention of Regulation 4(2) of the Food Safety and Standards (Foods for Infant Nutrition) Regulations, 2020. Similarly, for Lactogen Pro 1, FSSAI examined a claim that "Whey Protein" was easy to digest, with the claims also found to be in violation of the same regulatory provision. The regulator concluded that these promotional claims breach established statutory norms governing infant foods, with 5-HMOs standing for five specific human milk oligosaccharides—complex, indigestible sugars naturally found in high concentrations in mother's milk. The escalation from issuing standard warnings to filing formal legal proceedings indicates that the window for simple corrections or label adjustments on sensitive products like infant nutrition has closed.
FSSAI has flagged significant quality concerns regarding Biotin levels in Follow-up Formula samples, which were found to be below the prescribed standard. As reported by ZeeBiz, Upstox, Business Standard, CNBC TV18, and FSSAI's official statement, a sample of follow-up formula manufactured by Nestle India was found to be sub-standard with respect to its biotin content during laboratory analysis. The sample was subsequently referred for re-analysis, and the Referral Laboratory also found it non-conforming with the prescribed biotin requirement under the Foods for Infant Nutrition Regulations, 2020. This persistent quality control problem indicates that the issue may be systemic in the product formulation, with the regulator confirming that the sample was sub-standard with respect to its biotin content during laboratory analysis.
Nestle India has strongly defended its infant nutrition products, claiming full compliance with FSSAI regulations. According to PTI, a Nestle India spokesperson stated that "Our products are fully compliant with all the applicable regulations. The said products (i.e., NAN EXCELLA PRO & LACTOGEN PRO) and their labels were approved by the expert committee of FSSAI" and that "We confirm adherence to all regulations, including all norms and label declarations as per applicable laws." The company has clarified its position with authorities regarding the statements on labels in question, stating that "In response to the notice, we have again submitted our detailed response to the authorities regarding statements appearing on the label, which are factual in nature, and supported by scientific literature." The company reiterated its commitment to working closely with FSSAI in their efforts towards consumer awareness, emphasizing that "We will continue to work closely and support FSSAI in its efforts towards consumer awareness."
