Tata Consumer profit rises 16% to 470 crore rupees in second quarter
Key Facts
Tata Consumer Products reported on 26 October results for the quarter ended 30 September 2026, with group net profit rising 16% to 470 crore rupees and revenue from operations growing 14% to 5,661 crore rupees. The results showed revenue growth accompanied by higher volumes in branded India businesses, rather than pricing alone. The company said volumes in these businesses rose 11% during the quarter. Earnings before interest, taxes, depreciation and amortisation also increased 18%, outpacing revenue growth. The chief executive said it was the second consecutive quarter of double-digit revenue growth in fiscal 2027.
According to Reuters, consolidated net profit was 4.69 billion rupees, compared with 4.04 billion rupees in the year-earlier period, exceeding the average analyst estimate of 4.66 billion rupees. The result beat the estimate by a narrow margin, while also marking a clear year-on-year increase from the previous year's profit. These figures use a different reporting unit from the company's statement, which put group net profit at 470 crore rupees. The company also reported net profit attributable to owners of the parent at 469.30 crore rupees. The difference between group profit and profit attributable to parent-company shareholders places the two figures in their proper accounting context.
In the Indian market, salt revenue rose 15%, supported by volume growth, while Tata Sampann revenue jumped 57%, also with a contribution from volumes. The company said strong salt volumes led growth in its branded India businesses, and its growth businesses recorded a 40% increase. Revenue from ready-to-drink beverages rose 47%, which the company attributed to wider distribution, premiumisation and innovation. Growth thus extended across several categories, led by branded products and activity in ready-to-drink beverages. The company recorded 22 new launches during the quarter across health and wellness, convenience and premium products.
Indian tea performed more weakly than the other businesses: volumes were flat amid subdued category demand, while revenue declined marginally. The company said the volume-value gap narrowed following pricing actions. In international businesses, revenue grew 7% in rupee terms but fell 2% on a constant-currency basis. The company said a high comparison base affected the reading of international performance. The results highlight a contrast between momentum in branded Indian businesses and weakness in tea, alongside a contraction in international revenue after excluding currency effects.
Tata Starbucks recorded 15% revenue growth, which the company described as its highest quarterly same-store sales growth in several quarters. The joint venture ended the quarter with 505 stores across 81 cities in India, after opening seven net new stores. The store network expansion adds to sales growth, while the company did not link this performance to an improvement in operating margin. In the stock market, an Investing.com report said Tata Consumer shares closed down 2.84% on 26 October. Adjusted earnings per share came in at 4.75 rupees, below the 4.76 rupee estimate, despite consolidated net profit exceeding the average analyst estimate.
The chief executive said volume growth and disciplined execution supported an 18% increase in earnings before interest, taxes, depreciation and amortisation during the quarter. He added that the company would continue to focus on strengthening its core businesses and expanding growth businesses profitably. This follows two consecutive quarters of double-digit revenue growth in fiscal 2027, according to the company. The approach sets management's framework for the coming period, as it continues work on core activities and growth categories. The statement gave no next date or new numerical target.