23-07-2025
Omni-Channel Strategy Pushes Tata Consumer Products Growth
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Tata Consumer Products reported a consolidated net profit of INR 334 crore, a 15 percent year-on-year (YoY) increase, in the first quarter of FY2026, ending 30th June 2025. The India business strengthened omni-channel capabilities including food services and pharmacy, with channels of the future – e-commerce and modern trade – demonstrating robust growth.
Sunil D'Souza, MD & CEO of Tata Consumer Products said, "We delivered a steady topline growth of 10 per cent 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. Tata Sampann continued its strong trajectory, with new launches & innovations performing well. However, unfavourable weather impacted volume growth in the RTD business."
Revenue from operations for the quarter stood at INR 4,779 crore, up 10 percent. India business recorded double digit growth; enabled by strong growth in both core categories of tea and salt, supported by underlying volume gains. Tata Sampann continued its strong momentum, but the RTD business volume growth was impacted by unseasonal rains. The international business continued its momentum with a five percent constant- currency revenue growth while consolidated EBITDA for the quarter stood at INR 615 crore, a decline of 8 per cent due to higher tea costs in India and coffee price corrections in the non branded business.
The company faced some impediment with the acquired business. While transitory issues impacted growth in Capital Foods and Organic India, the focus is now to deliver in these businesses through ramping up advertising, innovation and distribution expansion. "We delivered yet another quarter of strong performance in the international business; with margin being accretive to the India business margins. Tata Starbucks continued to expand its store footprint across metros and smaller cities across India with a total store count of 485 stores across 80 cities," the CEO said.
