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What is the story about?
Tata Consumer Productsposted a consolidated net profit of ₹467 crore for the quarter ended September 30, up 17.6% from ₹397 crore a year earlier. The figure came in ahead of the CNBC-TV18 poll estimate of ₹456 crore. The Tata Group FMCG firm's better-than-expected performance for the September quarter, came on the back of a strong growth in its India business, higher salt sales and continued momentum in its newer categories such as Tata Sampann and ready-to-drink beverages.
Tata Consumer’s revenue from operations rose 14% year-on-year to ₹5,661 crore, exceeding the CNBC-TV18 poll forecast of ₹5,605 crore. On the operational front, earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 16.5% to ₹783 crore from ₹672 crore in the corresponding quarter last year, while EBITDA margin expanded to 13.84% from 13.5%.
The EBITDA performance was also marginally ahead of Street expectations of ₹775 crore, while margin was slightly above the forecast of 13.8%. The company also declared a dividend of ₹2.50 per share.
The strong showing was supported by robust volume growth in India, where the company's branded business recorded 11% underlying volume growth during the quarter.
Managing Director and Chief Executive Officer Sunil D'Souza said the company delivered its second straight quarter of double-digit revenue growth in FY27, backed by volume-led expansion in the domestic business.
"Our portfolio transformation continues to gain momentum," D'Souza said, noting that the company's growth businesses expanded 40% year-on-year and now contribute 38% of the India business.
Among key categories, Tata Salt delivered revenue growth of 15%, helped by strong volume gains. The company said tea volumes in India remained largely flat amid weak category demand, although pricing actions helped narrow the gap between volume and value growth.
A major contributor to growth was Tata Sampann, which reported 57% revenue growth during the quarter, supported by strong demand across pulses, spices and newer categories such as cold-pressed oils and dry fruits.
The company's ready-to-drink beverage portfolio also maintained momentum, recording 47% revenue growth. Management attributed the increase to wider distribution, premiumisation and continued product innovation.
Growth across acquired brands remained healthy despite supply-chain challenges. Capital Foods and Organic India together reported 15% revenue growth during the quarter. The company said export shipments were impacted by disruptions in global logistics, while domestic revenue from these businesses increased 24%.
Tata Consumer also launched 22 new products during the quarter across health and wellness, convenience and premium segments.
The international business delivered a mixed performance. Revenue grew 7% year-on-year, although it declined 2% in constant currency terms against a high base. In the UK, Tetley outperformed the tea category despite consumption being affected by prolonged warm weather, while the Canadian business continued to gain share across regular and speciality tea segments.
Meanwhile, Tata Starbucks reported one of its strongest quarters in recent years. Revenue grew 15%, supported by a multi-quarter high in same-store sales growth. The joint venture ended the quarter with 505 stores across 81 Indian cities and opened seven net new stores, including two Reserve outlets.
The company also highlighted progress in its digital transformation programme, with artificial intelligence-led initiatives being deployed across sales and operations to improve productivity and efficiency.
Other key business highlights
Tata Consumer’s revenue from operations rose 14% year-on-year to ₹5,661 crore, exceeding the CNBC-TV18 poll forecast of ₹5,605 crore. On the operational front, earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 16.5% to ₹783 crore from ₹672 crore in the corresponding quarter last year, while EBITDA margin expanded to 13.84% from 13.5%.
The EBITDA performance was also marginally ahead of Street expectations of ₹775 crore, while margin was slightly above the forecast of 13.8%. The company also declared a dividend of ₹2.50 per share.
The strong showing was supported by robust volume growth in India, where the company's branded business recorded 11% underlying volume growth during the quarter.
Managing Director and Chief Executive Officer Sunil D'Souza said the company delivered its second straight quarter of double-digit revenue growth in FY27, backed by volume-led expansion in the domestic business.
"Our portfolio transformation continues to gain momentum," D'Souza said, noting that the company's growth businesses expanded 40% year-on-year and now contribute 38% of the India business.
Tata Consumer segment wise performance
Among key categories, Tata Salt delivered revenue growth of 15%, helped by strong volume gains. The company said tea volumes in India remained largely flat amid weak category demand, although pricing actions helped narrow the gap between volume and value growth.
A major contributor to growth was Tata Sampann, which reported 57% revenue growth during the quarter, supported by strong demand across pulses, spices and newer categories such as cold-pressed oils and dry fruits.
The company's ready-to-drink beverage portfolio also maintained momentum, recording 47% revenue growth. Management attributed the increase to wider distribution, premiumisation and continued product innovation.
Growth across acquired brands remained healthy despite supply-chain challenges. Capital Foods and Organic India together reported 15% revenue growth during the quarter. The company said export shipments were impacted by disruptions in global logistics, while domestic revenue from these businesses increased 24%.
Tata Consumer also launched 22 new products during the quarter across health and wellness, convenience and premium segments.
The international business delivered a mixed performance. Revenue grew 7% year-on-year, although it declined 2% in constant currency terms against a high base. In the UK, Tetley outperformed the tea category despite consumption being affected by prolonged warm weather, while the Canadian business continued to gain share across regular and speciality tea segments.
Tata Starbucks results
Meanwhile, Tata Starbucks reported one of its strongest quarters in recent years. Revenue grew 15%, supported by a multi-quarter high in same-store sales growth. The joint venture ended the quarter with 505 stores across 81 Indian cities and opened seven net new stores, including two Reserve outlets.
The company also highlighted progress in its digital transformation programme, with artificial intelligence-led initiatives being deployed across sales and operations to improve productivity and efficiency.
| Metric | Q2 FY27 | Q2 FY26 | YoY Change | CNBC-TV18 Poll | Beat/(Miss) vs Poll |
|---|---|---|---|---|---|
| Revenue | ₹5,661 crore | ₹4,966 crore | +14.0% | ₹5,605 crore | +₹56 crore |
| Net Profit | ₹467 crore | ₹397 crore | +17.6% | ₹456 crore | +₹11 crore |
| EBITDA | ₹783 crore | ₹672 crore | +16.5% | ₹775 crore | +₹8 crore |
| EBITDA Margin | 13.84% | 13.50% | +34 bps | 13.8% | +4 bps |
| Source: BSE India | |||||
Other key business highlights
- India Branded Business volume growth: 11%
- Growth businesses revenue growth: 40%
- Tata Sampann revenue growth: 57%
- Ready-to-Drink portfolio growth: 47%
- Tata Starbucks revenue growth: 15%
- Tata Starbucks store count: 505 stores across 81 cities.
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