Tata Consumer Products Q2 results: Net profit rises 16% to ₹470 crore, revenue up 14%
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Tata Consumer Products reported a 16% year-on-year rise in consolidated net profit to ₹470 crore for the September quarter of FY27, supported by growth in its India business and higher operating profits.
Revenue from operations rose 14% to ₹5,661 crore in the second quarter, compared with ₹4,966 crore in the corresponding period last year. Profit before exceptional items and tax increased 21% to ₹632 crore.
The company’s consolidated EBITDA rose 18% to ₹794 crore, while its EBITDA margin expanded by 40 basis points year-on-year to 14%, according to its investor presentation released on Monday.
“We delivered our second consecutive quarter of double digit revenue growth in FY27, backed by strong underlying volume growth in India business. This volume-led performance, together with disciplined execution, drove 18% EBITDA growth,” Sunil D’Souza, managing director and chief executive officer of Tata Consumer Products, said.
Growth businesses drive performance
The India branded business recorded underlying volume growth of 11% during the quarter. The company’s growth businesses — including Tata Sampann, ready-to-drink products, Tata Soulfull, vending, Capital Foods and Organic India — grew 40% year-on-year and accounted for 38% of the India business.
Tata Sampann recorded revenue growth of 57%, while the ready-to-drink business grew 47%. Capital Foods and Organic India reported combined revenue growth of 15%, affected by shipping disruptions in exports, although their combined domestic revenue grew 24%.
Salt revenue increased 15% on strong volumes. However, India tea volumes remained flat amid subdued category demand, with revenue declining marginally as the gap between volume and value growth narrowed following pricing actions.
The company said it launched 22 products during the quarter across categories, including health and wellness, convenience and premiumisation.
International business and Starbucks
Revenue from the international business grew 7% in rupee terms, but declined 2% in constant currency terms, as the business faced a high base and the impact of a continued heatwave in the UK. The company said Tetley outperformed the category in the UK, while its Canada business grew ahead of the category in both regular and specialty segments.
Tata Starbucks recorded 15% revenue growth, described by the company as a multi-quarter high, backed by strong same-store sales growth. It ended the quarter with 505 stores across 81 Indian cities after opening seven net new outlets, including two Reserve stores.
D’Souza said the company would focus on scaling its core and growth businesses profitably. He also highlighted AI-led initiatives across sales and operations to improve productivity.
“Going forward, we will remain focused on strengthening and scaling our core and growth businesses profitably, along with building future ready capabilities to deliver sustainable growth,” he said.