Fast-moving consumer goods company Tata Consumer Products Ltd (TCPL) on Friday reported a group consolidated net profit of ₹427 crore for the June quarter (Q1FY27), up 29% year on year amid higher volumes.
The tea-to-salt giant reported consolidated revenue of ₹5,349 crore in the quarter, up 12% from the same period a year ago, the company said in an exchange filing .
Consolidated Ebitda for the quarter grew 19% to ₹730 crores, while margins expanded 70 bps to 13.6%.
The company’s India business delivered 13% underlying volume growth. “We delivered yet another quarter of double-digit topline growth, backed by volume growth. Importantly, this translated to a consolidated net profit growth of 29%,” said Sunil D’Souza, managing director & CEO of Tata Consumer Products, in a statement.
“I think this was the best ever quarter for the growth businesses,” D’Souza said in the post-earnings call.
“The India-branded business delivered robust underlying volume growth reflecting continued focus on execution, category expansion and innovation,” he added.
India-branded business reported a 6.8% volume growth in Q1 FY26.
‘Growth businesses’ grew 47% in Q1 and scaled to 36% of the India business. Tata Consumer’s growth businesses include emerging, high-potential segments like Tata Sampann (staples and dry fruits), Tata Soulfull (millets and healthy snacking), and ready-to-drink beverages like Tata Gluco+ and Tata Copper+.
“This is mix-led, not base-business recovery, and should extend as growth categories compound off a larger base with superior gross margins,” said consumer & midcaps analyst Sandeep Abhange at LKP Securities.
Tata Sampann continued to report strong momentum with 58% revenue growth in the quarter. Sampann’s growth was broad-based across categories, led by strong performance in dry fruits, cold pressed oils as well as core pulses and spices.
Salt revenue grew 7% during the quarter backed by steady volume growth. Calibrated price increases were actioned to offset input cost inflation in salt. Value-added salts delivered a volume growth of 13% in the quarter.
For the quarter, India tea volumes grew 2%, revenue was lower as the company passed on the benefit of lower tea cost to consumers. The tea segment revenue declined 4%.
The company saw 7-10% inflation in tea in the quarter, more at the bottom end of the portfolio than at the higher end. “An unusually strong summer, along with minor issues of LPG shortages impacting small restaurants and street-side vendors, including hot tea shops in the south, did impact the business,” the management said in the post-earnings call.
The company said El Nino concerns loom over tea output. “There might be a bit of a time lag between, when it hits us and when we pass it on, but broadly we would pass on the inflation, and try to ensure that we maintain margins,” they added.
Coffee continued its strong trajectory with a revenue growth of 24% for the quarter, while the ready-to-drink beverages segment’s revenue grew 41%, driven by 35% volume growth.
Its brands, Capital Foods and Organic India, delivered a growth of 40% and 27%, respectively. The company launched 14 new products during the quarter.
Global performance
UK business declined 2% in constant currency basis, impacted by an intense summer which drove a slowdown in the everyday black tea category.
International business grew 16% (3% in constant currency terms), with the US business delivering 7% constant currency growth in the quarter.
The management reiterated that for the full year, it maintained that this year, Tata Consumer expects to deliver 50 to 70 basis points of margin expansion.
It expects Starbucks to grow close to a high single digit on the top line going forward. The company plans to have “a slightly disruptive play in the Korean noodle space coming soon,” and “aggressive expansion of the organic pulses” from its growth portfolio.
Tata Starbucks’ revenue grew 11% YoY with a healthy same-store sales growth in the quarter.
Shares of the company closed at ₹1,088.00 on Friday, down 1.78 % on the National Stock Exchange as the benchmark Nifty fell 0.43%.