Tata Consumer posts ₹5,349 crore revenue, profit rises 29% as growth businesses power Q1

Tata Consumer Products began FY27 on a strong note, with its fast-growing businesses continuing to outpace the core portfolio and helping lift profitability. The company reported a 29% year-on-year (YoY) rise in consolidated net profit to ₹427 crore for the quarter ended June 30, while revenue from operations increased 12% to ₹5,349 crore, driven by double digit volume growth in its India branded business. 

The company's India branded business recorded an underlying volume growth (UVG) of 13%, while its portfolio of "growth businesses", which includes brands such as Tata Sampann, Capital Foods and Organic India, expanded 47% during the quarter. These businesses now account for 36% of the India business, underlining their growing contribution to the company's overall mix. Consolidated EBITDA rose 19% to ₹730 crore. 

Sunil D'Souza, managing director and CEO of Tata Consumer Products, said the company had delivered another quarter of double-digit topline growth backed by volume expansion.

"We delivered yet another quarter of double-digit topline growth, backed by volume growth. Importantly, this translated to a consolidated net profit growth of 29%," he said. "The India branded business delivered robust underlying volume growth reflecting continued focus on execution, category expansion and innovation." 

Growth portfolio gathers momentum

Within the domestic business, Tata Sampann emerged as one of the fastest growing brands, posting 58% revenue growth across categories. The company also expanded its spices portfolio with a broader range of whole spices. The ready to drink beverages business recorded 41% revenue growth, supported by premiumisation, innovation and new Tetley Kombucha Zero flavours including Cranberry and Pineapple. Capital Foods and Organic India registered revenue growth of 40% and 27%, respectively. 

Traditional categories also remained resilient. Salt revenue increased 7% on steady volume growth, while tea volumes rose 2%. Tea revenue, however, declined as the benefit of lower tea costs was passed on to consumers. Coffee continued to outperform, registering 24% revenue growth during the quarter. 

Innovation remained a key focus area, with Tata Consumer introducing 14 new products during the quarter and indicating a strong launch pipeline for the rest of the year. 

Internationally, revenue grew 16%, or 3% in constant currency terms, led by strong performance in the US market. In the UK, specialty tea brands Teapigs and Good Earth continued to gain market share in the specialty and fruit and herbal tea segments. 

Its joint venture Tata Starbucks also maintained momentum, reporting 11% revenue growth on the back of strong same store sales. The chain ended the quarter with 498 stores across India after opening four new outlets, including Reserve stores in Kolkata and New Delhi. 

Looking ahead, D'Souza said the company remains focused on expanding both its core and emerging businesses. "Our innovation momentum continues with 14 new launches in Q1 and a roadmap in place to fuel our growth agenda this year. We remain focused on delivering sustainable profitable growth by strengthening and scaling our core and growth businesses and building a future ready portfolio," he said.