Tata Consumer’s Q2 profit rises 16%, in line with estimates
Mumbai: Consumer packaged goods company Tata Consumer Products Ltd (TCPL) on Monday reported consolidated net profit of ₹470.14 crore for the September quarter (Q2 FY27), up 15.6% year-on-year and broadly in line with estimates, as salt volumes rose and tea revenue dipped marginally.
Its consolidated revenue stood at ₹5,661.13 crore, up 14% on-year, the company said in an exchange filing.
According to Bloomberg, 22 analysts tracking the stock estimated revenue at ₹5,583.2 crore for the quarter. The net profit estimate was ₹469.2 crore, based on projections from 14 analysts.
The company’s consolidated revenues grew 12% and net profits grew 29% on-year in the June quarter.
“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 of TCPL, in a statement.
TCPL has implemented price hikes across products. Tea prices are up 8-10% from the first quarter, and salt prices have been hiked by 6%, management said.
“We had seen a little bit of inflation in Capital Foods as well, and we've taken pricing through the quarter, which will again start to flow. So across the board, I think the whole play of price increases has yet to, manifest fully into the P&L,” D’Souza said to analysts in the post-results call.
Consolidated Ebitda (Earnings before interest, taxes, depreciation, and amortization) for the quarter grew 18% to ₹794 crore, while margins expanded 40 basis points to 14%.
Management reiterated its focus on expanding margins sequentially, targeting an Indian food and beverage Ebitda margin of 17-20% over the next three to five years.
India-branded business reported an underlying volume growth (UVG) of 11% on-year. The UVG grew at13% on-year in Q1 FY27.
The company launched 22 new products in the quarter.
The company's shares fell 2.84% to close at ₹936.50 on National Stock Exchange on Monday, while the benchmark Nifty 50 rose 0.68%.
‘Growth businesses’ grew 40% in the second quarter and scaled to 38% of the India business. TCPL’s growth businesses include emerging, high-potential segments such as Tata Sampann (staples and dry fruits), Tata Soulfull (millets and healthy snacking), and ready-to-drink beverages, including Tata Gluco+ and Tata Copper+.
The Tata Sampann portfolio, which includes spices, oils and ready-to-cook products, reported 57% year-over-year growth, driven by volume.
The company’s dry fruits and cold-pressed oils reported a combined annual recurring revenue of ~ ₹1,000 crore. The ready-to-drink beverages portfolio reported a 47% revenue growth, driven by 34% volume growth.
D'Souza expects the growth portfolio to sustain a 30%+ growth rate over the next two to three years.
From -5% margins five to six years ago, Tata Sampann has reached 14-15% margin range, expanding 270-280bps on-year in the quarter, he said.
The salt segment revenue grew 15% during the quarter backed by 9% volume growth. Tea volumes in India were flat as the category demand was subdued. Revenue from the tea segment in India declined marginally as the volume-value gap narrowed following pricing actions.
For the quarter, the International business revenue grew 7% (-2% in constant currency), due to a higher base. Growth in the UK was affected by a continued heatwave.
Tata Starbucks reported 15% revenue growth for the quarter, a multi-quarter high, driven by strong same-store sales growth. Tata Starbucks ended the quarter with 505 stores across 81 cities in India.
“Near double-digit inflation in tea, volatile HDPE (plastic for packaging) could more than offset the lower coffee costs,” analysts at Nomura said in a 28 September report.
Neethi Lisa Rojan is a senior correspondent focusing on the consumer goods and retail sector working from Mumbai for Mint since 2026. She has been a journalist for a little over two years with Moneycontrol and The Morning Context. She has covered the consumer and healthcare sectors in earlier roles. She was a double gold medallist during her bachelor’s from Mahatma Gandhi University Kerala and post-graduation from Pondicherry University. With a background in commerce and journalism, she brings a sharp analytical lens to stories on India’s fast-evolving consumer goods and retail sector.<br><br>With an academic background in business administration and a keen eye for financial statement analysis, she bridges the gap between corporate data and compelling narrative journalism. Her reporting is characterized by a focus on how evolving consumer behaviours and regulatory changes impact India's largest mass-market brands. She is a keen learner with diplomas in international business, human rights and journalism. She specialized in business journalism at the Asian College of Journalism, Chennai. When she is not looking into shopping carts, you can find her explaining the latest conspiracy theory.
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