Tata Consumer Products Q1 Results: Profit jumps 15% YoY to ₹332 crore; revenue up 10%
Its consolidated net profit saw a 15% year-on-year (YoY) rise to ₹ 331.75 crore in the said quarter, as against ₹ 289.25 crore in the same period last year. However, on a sequential basis, the figure was lower than ₹ 348.72 crore profit the blue-chip company posted in the preceding March quarter.
The revenue from operations saw a 9.8% YoY rise to ₹ 4,778.91 crore in the April-June quarter of FY26. The company had posted a revenue of ₹ 4,352.07 crore in the same period last fiscal. Quarter-on-quarter, too, revenue rose by 3.7% from ₹ 4,608.22 crore in the previous quarter.
However, the consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) for the quarter came in at ₹ 615 crore, a decline of 8% due to higher tea costs in India and coffee price corrections in the non-branded business.
The company, in a press release following the earnings announcement, said its India business recorded double-digit growth, enabled by strong growth in both core categories of tea and salt, supported by underlying volume gains. Meanwhile, the international business also continued its momentum with a 5% constant currency revenue growth.
During the quarter, Tata Consumer Products' domestic packaged beverages business revenue grew 12% YoY, with coffee sales continuing on a strong trajectory, recording a revenue growth of 67% for the quarter.
However, the RTD (Ready to Drink) business was impacted by unseasonal rains and recorded a moderate volume growth of 3%, the Tata group company said.
As for the India food business, revenue grew 14% YoY. 'Tata Sampann portfolio continued to perform well and grew 27% for the quarter. Dry fruits and cold-pressed oil continued to build on their growth momentum,' the company said.
In line with its store addition plans, Tata Starbucks added 6 net new stores during the quarter, bringing the total number of stores to 485 across 80 cities.
The Cold Brew category saw growth and contributed to a larger share of the beverage menu mix.
'We delivered a steady topline growth of 10% in Q1 FY26, with double-digit net profit growth. During the quarter, we recorded double-digit growth in the core India business across both tea and salt backed by volume growth," said Sunil D'Souza, Managing Director & CEO of Tata Consumer Products.
While transitory issues impacted growth in Capital Foods and Organic India, our focus now turns to delivering on our aspirations in these businesses through ramping up advertising, innovation and distribution expansion, said D'Souza.
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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