Tata Consumer raises profit 16% to 470 crore rupees in second quarter
Key Facts
Tata Consumer Products reported results on October 26 for the quarter ended September 30, 2026, with group net profit rising 16% year over year to 470 crore rupees. Consolidated operating revenue increased 14% to 5,661 crore rupees, while earnings before interest, taxes, depreciation and amortization rose 18% to 794 crore rupees, according to a company filing. The results show revenue continuing to grow at a double-digit pace for the second consecutive quarter in fiscal 2027. Net profit and revenue came close to analyst estimates cited by Mint, with both figures exceeding the average forecasts. The company linked its performance to volume growth in its India branded business and disciplined execution.
A group of 22 analysts estimated quarterly revenue at 5,583.2 crore rupees, while the average net profit estimate, based on forecasts from 14 analysts, was 469.2 crore rupees, according to Bloomberg figures cited by Mint. Reported revenue exceeded those estimates, and net profit came in slightly higher. Compared with the previous quarter, first-quarter fiscal 2027 revenue had risen 12% to 5,349 crore rupees, while net profit increased 29% to 427 crore rupees. In the second quarter, annual revenue growth accelerated to 14%, while net profit grew 16%. EBITDA grew 18% in the second quarter to 794 crore rupees, according to the official filing.
In India, the branded business posted underlying volume growth of 11% during the quarter, and growth businesses rose 40% to account for 38% of the India business, the company said. Salt revenue increased 15%, supported by strong volume growth, while Tata Sampann revenue rose 57%. The ready-to-drink business also recorded revenue growth of 47%. Chief Executive Sunil D'Souza said the company had delivered "its second consecutive quarter of double-digit revenue growth in fiscal 2027," adding that volume-led performance, alongside disciplined execution, supported 18% growth in EBITDA.
Performance was uneven across businesses. Tea volumes in India remained stable amid soft category demand, while revenue declined marginally as the gap between volume and value growth narrowed following pricing actions, according to the company filing. In the international business, revenue rose 7% in rupees but fell 2% in constant currency; the company said it faced a high comparison base, while category consumption in the U.K. was affected by a prolonged heatwave. Capital Foods and Organic India together posted revenue growth of 15%, affected by shipping disruption in export business, while their domestic revenue grew 24%. The results show different sources of growth across India and international businesses and between domestic sales and exports.
In other businesses, Tata Starbucks revenue rose 15%, its highest growth in several quarters, supported by strong same-store sales growth, the company said. It ended the quarter with 505 stores in 81 Indian cities. The group also launched 22 new products during the quarter as part of innovation efforts that it said continued to support growth. These figures reflect the group's expanding food and beverage operations alongside its core consumer goods business. Revenue had grown 12% year over year in the first quarter, before the rate rose to 14% in the second quarter.
In trading, the company's shares closed down 2.84% at 936.50 rupees on the NSE on October 26, according to Mint, while the Nifty 50 rose 0.68%. Mint said the earnings and revenue results were broadly in line with analyst estimates, but the available evidence did not provide the share's movement on October 27. The path management has set for the coming years centers on margins; it is targeting an EBITDA margin of between 17% and 20% for its India food and beverage business over the next three to five years. The company said it would continue to focus on growing its core and growth businesses profitably and building future capabilities to support sustainable growth.