Tata Consumer Products Q2 Results: Net profit, revenue beat estimates; domestic core business posts double-digit growth

Tata Consumer Products released its financial performance for the second quarter of FY26 today, beating analysts’ estimates.

The Tata Group company reported a net profit of ₹397 crore in Q2FY26, coming ahead of analyst estimates of ₹373 crore, marking a 10.6% YoY improvement. The revenue from operations also came in higher than estimates at ₹4,966 crore, driven largely by pricing gains.

In the same period last year, the company had reported revenue of ₹4,214 crore, reflecting a 18% YoY growth, while in the preceding June quarter, the revenue stood at ₹4,778 crore.

At the operating level, Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) stood at ₹672.51 crore, which also beat analysts' estimates of ₹633 crore.

During the September 2024 quarter, the company had reported an EBITDA of ₹626 crore, and in Q1FY26, it came in at ₹607 crore.

The operating margins, however, have narrowed to 13.4% from 14.85% in the same period last year but came in higher than estimates. Sequentially, the margin expanded 70 basis points QoQ. India business EBITDA grew 33% YoY, with margin expansion of 180 basis points, as per the company's earnings filing.

Domestic core business maintains strong double-digit growth

Meanwhile, the company’s domestic core business reported double-digit growth for the second consecutive quarter in both Tea and Salt. There was a significant sequential acceleration in Tata Consumer Products ‘Growth’ businesses, which recorded a robust 27% growth during the quarter.

Tata Sampann continued to build on its strong momentum, delivering an impressive 40% growth. The Ready-to-Drink (RTD) segment also performed well, posting a 31% increase in volume and a 25% rise in value, despite the challenges posed by unfavourable weather conditions.

However, businesses such as Capital Foods, Organic India, and Tata Soulfull faced some impact due to the ongoing GST 2.0 transition, the company said in its earnings' filing.

Sunil D’Souza, Managing Director & CEO of Tata Consumer Products said, “We delivered a strong topline growth of 18% in Q2 FY26, with steady net profit growth. We continued to accelerate innovation with 25 new launches during the quarter across categories, catering to evolving consumer needs in Health & Wellness, Convenience and Premiumization.

"Tata Starbucks continued to expand its store footprint across metros and smaller cities, including new store formats. Its total store count is 492 stores across 80 cities. We remain focused on building for the future with growth, innovation and consumer trust at the heart of everything we do," he further added.

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