Tata Consumer Q2 Results: Net profit rises 16% YoY to Rs 470 crore, revenue up 14%
IANSTata Consumer Products posted strong Q2 FY27 earnings, driven by robust Indian demand, salt sales and growth businesses, while EBITDA rose 18% year-on-year.
Consolidated earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 18% to Rs 794 crore during the quarter.
The company’s India branded business recorded underlying volume growth of 11%, led by strong demand for salt. Revenue from its salt business rose 15% during the quarter.
Tata Consumer’s growth businesses expanded 40% YoY and accounted for 38% of its India business. Tata Sampann recorded revenue growth of 57%, while its ready-to-drink business grew 47% during the quarter.
Revenue at Capital Foods and Organic India grew 15% on a combined basis, affected by shipping disruptions in the export business. Domestic revenue for the two businesses rose 24%.
India tea volumes remained flat amid subdued category demand, while revenue declined marginally as the gap between volume and value growth narrowed following pricing actions.
The company’s international business reported revenue growth of 7% during the quarter, or a 2% decline in constant currency terms, against a high base. In the UK, category consumption was affected by a continued heatwave, while Tetley outperformed the category. In Canada, growth was ahead of the category in both regular and specialty segments.
Tata Starbucks reported 15% revenue growth, marking its strongest same-store sales growth in multiple quarters. The business ended the quarter with 505 stores across 81 cities in India after opening seven net new stores, including two Reserve stores.
The company launched 22 products during the quarter across health and wellness, convenience and premiumisation categories.
“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,” said Sunil D’Souza, managing director and chief executive officer of Tata Consumer Products.
The company said it would focus on strengthening and scaling its core and growth businesses profitably while building capabilities to support sustainable growth.