Nestle India Shares Fall Nearly 3% as FSSAI Initiates Action Over Three Infant Nutrition Products

Nestle India shares came under pressure on September 18, falling nearly 3% after the Food Safety and Standards Authority of India initiated legal proceedings concerning three infant nutrition products. 

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The stock declined as much as 2.85% during the session to touch ₹1,332.80 on the BSE. 

According to FSSAI, three separate adjudication cases have been filed against Nestle India following its examination of the products and related promotional material, along with laboratory testing of a follow-up formula. 

The products referred to in the regulatory action are Infant Nutrition, NAN Excella and Lactogen. 

FSSAI flags promotional claims 

As part of its examination, FSSAI reviewed infant nutrition products and promotional material available on e-commerce platforms. 

The regulator found claims relating to “5 HMOs” and “Whey Protein” for NAN Excella Pro Stage 1. For Lactogen Pro 1, the material included a claim concerning “Whey Protein” being easy to digest. 

FSSAI sought clarification from Nestle India over these claims. 

According to the regulator, the two products were found to be in contravention of Regulation 4(2) of the Food Safety and Standards (Foods for Infant Nutrition) Regulations, 2020. The provision restricts promotional claims or material intended to increase the saleability of infant foods. 

FSSAI also cited Section 3 of the Infant Milk Substitutes Act, 1992, which prohibits the advertisement and promotion of such products. 

Follow-up formula fails Biotin requirement in tests 

A separate issue emerged from laboratory testing of a follow-up formula manufactured by Nestle India. 

FSSAI said a sample was found to be sub-standard for its Biotin content. The sample was subsequently sent for another analysis, where the referral laboratory also found it did not meet the Biotin requirement prescribed under the 2020 regulations. 

Following these findings, the food regulator filed three separate adjudication cases involving the three products. 

Nestle India stock performance 

The regulatory development weighed on Nestle India shares during Friday’s session. 

The stock’s intraday fall took it to ₹1,332.80 on the BSE. Nestle India had touched a 52-week high of ₹1,553 in August 2026, while its 52-week low of ₹1,145.10 was recorded in October 2025. 

Over the past week, the stock has declined 3%, while the one-month fall stands at 8%. It is down 4% over four months. 

Over longer periods, Nestle India shares have gained 11.5% in six months and 11% over one year. The stock has risen 33% over the past five years.