Shares of Nestle India Ltd extended losses in Thursday's session, falling more than 2 percent to emerge among the top losers on the Nifty 50, even as brokerages maintained largely constructive views following the FMCG major's stronger-than-expected June quarter earnings.

The stock fell 2.25 percent to Rs 1,460 in morning trade, reversing part of Wednesday's post-results rally, when it had gained 2.87 percent. At 09:40 hrs IST, the Sensex was down 303.82 points, or 0.40 percent,  at 76,451.23, while the Nifty 50 declined 87.20 points, or 0.36 percent, to 23,909.05.

Nestle India had reported a strong June quarter performance, prompting mixed brokerage reactions.

The FMCG major reported consolidated net profit of Rs 958.7 crore for the June quarter, up 48 percent year-on-year, while consolidated revenue from operations rose 25 percent to Rs 6,378.2 crore. On a standalone basis, profit after tax increased 47.9 percent year-on-year to Rs 975.1 crore, comfortably ahead of the CNBC-TV18 poll estimate of Rs 857 crore. Total sales rose 25.4 percent to Rs 6,363.3 crore, also surpassing the poll estimate of Rs 6,065 crore. Domestic sales grew 25 percent during the quarter, while EBITDA margin stood at 24.2 percent. Earnings per share came in at Rs 5.06.

Chairman and Managing Director Manish Tiwary said the company delivered a strong quarter, with sales growth led by volume expansion, while exports grew 35.6 percent despite geopolitical headwinds. He added that Nestle India accelerated cost savings, increased advertising spends by over 40 percent year-on-year, and delivered strong double-digit growth across all four product groups and sales channels.

Nomura maintained its Buy rating on Nestle India stock with a target price of Rs 1,675, implying an upside of more than 12 percent from Wednesday's closing price. The brokerage said Nestle India has now delivered its third consecutive quarter of strong earnings beat. It highlighted the 25 percent year-on-year sales growth and sharp margin expansion despite higher advertising spends, reflecting strong execution during the quarter.

However, Nomura expects growth to moderate from the second and third quarters of FY27 as the company comes up against a higher base.

HSBC retained its Hold rating on the stock with a target price of Rs 1,480. The brokerage said revenue growth of 25 percent year-on-year exceeded estimates across categories. It described the recovery in the milk nutrition business as encouraging, but added that the improvement was partly aided by a favourable base.

HSBC added that the stock continues to trade at a premium valuation, supporting its decision to maintain a Hold rating despite the company's stronger-than-expected quarterly performance.