Tata Consumer Products on Monday reported an 11% year-on-year growth in consolidated net profit to Rs 404 crore in the second quarter of FY26, driven by demand for salt and tea. Net profit was above Street expectations, which had forecast bottom line at Rs 367 crore for the period.
The maker of Tata Salt and Tetley tea reported a nearly 18% year-on-year growth in revenue to Rs 4,966 crore for the quarter, higher than Street estimates of Rs 4,751 crore. Consolidated Ebitda grew 7.3% to Rs 672 crore, ahead of Bloomberg consensus estimates of Rs 628 crore. Ebitda margin contracted 140 basis points to 13.5% versus 14.9% reported a year ago.
The branded business in India grew to Rs 3,122 crore, up from Rs 2,655 crore in the same quarter last year, reflecting robust domestic demand. Revenue from the international branded business rose to Rs 1,287 crore, compared with Rs 1,116 crore in the second quarter of FY25. As a result, Tata Consumer’s total branded business revenue stood at Rs 4,410 crore for the quarter, marking a healthy growth from Rs 3,771 crore in the year-ago period. Revenue from the non-branded business increased to Rs 590 crore, up from Rs 462 crore in the year-ago period.
In the domestic business, the packaged beverage business revenue grew 12% with a 5% volume growth, while coffee recorded a 56% growth in the quarter. India Foods’ business revenue grew 19% with an 11% volume growth, while core products (such as salt and tea) saw double-digit growth during the quarter. The Tata Sampann portfolio, which includes branded staples, delivered a 40% sales growth during the quarter.
The ready-to-drink business, the company said, delivered a 31% volume growth in the second quarter, despite headwinds from unseasonal rains and heightened competitive intensity. Acquired businesses such as Capital Foods and Organic India reported combined revenue of Rs 356 crore in the second quarter, recording a 16% growth year-on-year. The company said that Capital Foods’ sales, particularly in modern trade, were adversely impacted in September following the announcement of GST rate changes in categories such as noodles and condiments.’
In the international business, the company’s revenue grew 9% in constant currency terms, driven by continued strong coffee performance in the US.
Coffee chain joint venture Tata Starbucks added 7 new stores with footprint growth across both metros and smaller cities, including new store formats. The total number of stores at the end of the quarter was 492 across 80 cities. “We continued to accelerate innovation with 25 new launches during the quarter across categories, catering to evolving consumer needs in health & wellness, convenience and premiumisation,” Sunil D’Souza, MD & CEO, Tata Consumer, said.