New Delhi, Oct. 15 -- Nestle India's September-quarter profit rose 36.3% year-on-year, but its shares fell as much as 8.3% on Thursday after the company flagged persistent food inflation and volatile commodity costs.

The maker of Maggi noodles and KitKat chocolates reported broad-based growth across product categories, but investor sentiment was dampened after it said, "rising inflation, particularly food inflation, is a reality".

The shares recovered marginally later in the day. At 1.38 pm, they were down 5.4% from the previous close at Rs.1,308.60 apiece on the National Stock Exchange.

"Coffee and wheat are expected to remain range-bound, while sugar and edible oils have stabilized at elevated levels," the company said in an exchange...