Tata Consumer saw net profit rise 15.1% year-on-year to Rs 334.15 crore in the quarter ended June 30, 2025 (Q1FY26), but missed street estimates of Rs 355 crore for the period as tea and coffee inflation weighed on performance, the company said on Wednesday. In the year-ago quarter, the company had incurred a one-time restructuring-related cost of Rs 17.1 crore. Excluding that, profit for Q1 was unchanged year-on-year, its results showed.
Tata Consumer’s revenue
Revenue rose nearly 10% y-o-y to Rs 4,778.91 crore in Q1, against a Bloomberg consensus estimate of Rs 4,813 crore for the period. Tata Consumer’s tea portfolio, which makes up a significant portion of revenue, was hit by higher prices due to adverse weather conditions and supply chain disruptions, analysts tracking the company said.
Earnings before interest, tax, depreciation and amortisation (Ebitda), meanwhile, was down 9% y-o-y to Rs 606.94 crore for the quarter under review. Analysts estimates had pegged Ebitda at Rs 648 crore. Ebitda margin at 12.7% was below Bloomberg estimates of 13.4% for the quarter. It was down 260 basis points versus the year-ago period.
The company said that Tata Sampann continued its strong momentum, while its international business constant currency growth stood at 5%, while value-added salt portfolio grew 31%.
Growth
The company’s branded business in India reported a 6.8% underlying volume growth (UVG), while the core India business saw double-digit growth in both tea and salt. ‘Growth’ businesses grew 7% on an aggregate basis in Q1, the company said.
Tata Consumer said that the company continues to strengthen omnichannel capabilities, including food services (HoReCa) and pharmacy, with channels of the future, demonstrating robust growth.
Coffee prices were on a downward trajectory, though ongoing volatility warranted close monitoring. Tea prices remain favourable, however, the outlook remained cautiously optimistic, the company said.