Tata Consumer Products Reports 15.6% Rise in Q2 Net Profit

Tata Consumer Products reported a 16 per cent rise in consolidated net profit to ₹470.14 crore for the September quarter of fiscal 2027, driven by strong underlying volume growth in its India business and expanded revenue across core segments like salt and ready-to-drink beverages.

Tata Consumer Products Ltd. posted consolidated net profit of ₹470.14 crore for the quarter ended September 30, 2026, marking a 15.6 per cent increase compared to the same period a year earlier. Operating revenue climbed 14 per cent from ₹4,965.90 crore to ₹5,661.13 crore. The results, approved by the board on October 26, 2026, topped consensus estimates tracked by Bloomberg, which had projected revenue at ₹5,583.2 crore.

We delivered our second consecutive quarter of double-digit revenue growth in FY27, backed by strong underlying volume growth in the India business, said Sunil D’Souza, managing director and chief executive officer of Tata Consumer Products, during a post-earnings conference call.

India Volume Expansion and Core Segment Performance

The India-branded business achieved 11 per cent volume growth, propelling domestic revenue higher even as traditional tea consumption remained subdued. Salt revenue jumped 15 per cent on a 9 per cent volume increase, with premium salt volumes surging 17 per cent. Growth businesses expanded 40 per cent to reach ₹1,438 crore. These newer categories now account for 38 per cent of total India business revenue, up from 32 per cent previously.

Photo: Business Standard

For the six months ended September 30, 2026, group consolidated net profit increased from ₹738.26 crore to ₹897.33 crore, while revenue from operations reached ₹11,101.01 crore compared with ₹9,744.81 crore in the corresponding period last year. Total income for the quarter increased to ₹5,699.70 crore from ₹5,003.91 crore a year earlier, with other income standing at ₹38.57 crore.

Meanwhile, tea volumes across India stayed flat amid sluggish category demand, leading to a marginal dip in tea revenue as pricing actions narrowed the volume-value gap. Tata Sampann recorded a 57 per cent surge in revenue, while ready-to-drink beverages advanced 47 per cent, supported by a 34 per cent volume jump. Capital Foods and Organic India delivered combined revenue growth of 15 per cent for the quarter, though performance was impacted by shipping disruptions in the exports business, while the domestic revenue grew 24 per cent.

Price Hikes Offset Rising Input Costs

To counter rising input costs, management implemented targeted price adjustments across the portfolio. Tea prices were raised by 8 to 10 per cent during the quarter, and salt prices increased by 6 per cent. Consolidated EBITDA grew 18 per cent to ₹794 crore, with margins widening by 40 basis points to 14 per cent. However, segment operating profit in domestic units rose more slowly—up 13.9 per cent from ₹358.76 crore to ₹408.54 crore—as margins narrowed from 11.5 per cent to 11.1 per cent due to inflation in key inputs.

We have seen margin pressure coming through the year, but we have also taken price increases. So, as we have seen any bit of pressure on costs, we have translated it into price to make sure we maintain volume.

Sunil D’Souza, managing director and chief executive officer, Tata Consumer

While group consolidated net profit rose 16 per cent, standalone profit after tax fell from ₹285.19 crore to ₹242.81 crore. The company attributed the standalone drop to exceptional items, even though standalone revenue from operations rose 17 per cent to ₹4,207.50 crore.

Photo: Univest

International Profits Climb Despite UK Heatwaves

International operations faced headwinds during the quarter. Overseas revenue grew 7 per cent in nominal terms but dropped 2 per cent in constant currency on a high base, hampered by persistent heatwave conditions in the United Kingdom. Despite weather challenges, international segment operating profit climbed 23.2 per cent from ₹147.76 crore to ₹182.10 crore, buffering domestic margin pressures.

Financial Highlights for the Second Quarter

Financial Metric	Q2 FY27 (Sep 2026)	Q2 FY26 (Sep 2025)	YoY Change
Consolidated Revenue	₹5,661.13 Cr	₹4,965.90 Cr	+14%
Consolidated Net Profit (PAT)	₹470.14 Cr	₹406.51 Cr	+15.65%
Consolidated EBITDA	₹794 crore	₹675 crore	+18%
Standalone Revenue	₹4,207.50 Cr	₹3,595.22 Cr	+17%
Standalone Net Profit (PAT)	₹242.81 Cr	₹285.19 Cr	-14.9%

These financial metrics reflect the company’s overall performance across both consolidated and standalone operations during the second quarter of the 2027 fiscal year.

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