Tata Consumer Q2 Results: Profit Rises 16% to ₹470 Crore on Volumes

Tata Consumer Products reported a 16% rise in group net profit to ₹470 crore for the July–September quarter, with its Tata Consumer Q2 results also showing revenue up 14% at ₹5,661 crore.

The Tata group’s food and beverages company announced the numbers on Monday, 26 October. Consolidated EBITDA rose 18% to ₹794 crore, growing faster than revenue, while underlying volumes in the India branded business increased 11%.

Net profit attributable to shareholders of the company stood at ₹469.30 crore. On a standalone basis, however, profit fell to ₹242.81 crore from ₹285.19 crore a year earlier, according to the filing figures reported by Equitybulls.

The shares rose as much as 4.2% to ₹976.30 on the BSE in early trade on Tuesday, from a previous close of ₹936.60, Business Standard reported. Brokerages, however, lowered their price targets.

Tata Consumer Q2 results: growth businesses take a bigger share

The company’s newer “growth businesses” expanded 40% year-on-year and now make up 38% of its India business, Tata Consumer said in its results statement. Tata Sampann, its packaged staples brand, posted a 57% jump in revenue, and the ready-to-drink portfolio grew 47%.

Salt revenue rose 15%. Business Standard reported that the company has raised salt prices by 13% to pass on cost inflation. Capital Foods and Organic India, the two businesses Tata Consumer acquired in 2024, together grew revenue 15%, with their domestic revenue up 24%.

Tea, the company’s oldest business, was softer. India tea volumes were flat and revenue declined marginally, although the company has taken calibrated tea price increases of 8–10% since the first quarter to keep pace with costs, according to Business Standard.

Outside India, revenue grew 7% but declined 2% in constant currency terms. Tata Starbucks, the 50:50 joint venture with Starbucks, grew revenue 15% and opened seven net new stores, including two Reserve stores, taking its network to 505 outlets across 81 cities. The company launched 22 new products during the quarter.

Managing Director and CEO Sunil D’Souza said Tata Consumer had delivered “our second consecutive quarter of double digit revenue growth in FY27”. He added that the company’s portfolio transformation “continues to gain momentum”.

D’Souza also said Tata Starbucks had delivered “strong revenue growth, a multi-quarter high” in the period. The company, he said, remains focused on “delivering sustainable profitable growth”.

Why the numbers matter for investors

The Tata Consumer Q2 results indicate that the company’s growth is being driven by volumes as well as pricing. They also show that the company’s bets beyond tea and salt, including staples, packaged foods and ready-to-drink beverages, now carry far more weight in the India business.

Analysts, though, remain cautious on valuations. JM Financial kept its “add” rating but cut its target price to ₹1,065 from ₹1,225. Elara Capital retained its “accumulate” call and lowered its target to ₹1,080 from ₹1,290, Business Standard reported.

JM Financial said the pace of margin recovery in the India business is the key factor to watch. SBI Securities flagged a recovery in tea demand and input-cost pressures as the main monitorables.

Tata Consumer Products was formed in 2020, when Tata Global Beverages merged with the consumer products business of Tata Chemicals. Its brands include Tata Tea, Tetley, Tata Salt and Tata Sampann, and the company reported consolidated annual turnover of ₹20,290 crore.

What comes next for Tata Consumer

Management expects margins to improve by 40 basis points in FY27, according to Business Standard. JM Financial expects the full benefit of the tea and salt price increases to show up in the October–December quarter, with stable profitability in the international and non-branded businesses.

The December-quarter numbers will therefore be the first real test of whether the price increases translate into wider margins without hurting volumes. Tata Consumer is among several large Indian companies reporting September-quarter earnings this month; read more in our latest business news coverage.