Tata Consumer Products reported a 16% year-on-year increase in consolidated net profit to ₹470.14 crore for the second quarter of FY2026–27, while revenue from operations rose 14% to ₹5,661.13 crore. The results for the quarter ended September 30, 2026, were supported by strong domestic demand, higher salt sales and rapid growth in newer businesses such as Tata Sampann and ready-to-drink beverages. Consolidated EBITDA increased 18% to ₹794 crore, and the EBITDA margin expanded by 40 basis points to 14%.
The headline growth, however, masks differences across the portfolio. Tata Sampann’s revenue rose 57%, ready-to-drink products grew 47%, and Tata Starbucks revenue increased 15%. Meanwhile, Indian tea volumes remained flat, and international revenue declined 2% in constant-currency terms. The results suggest that Tata Consumer’s growth strategy is increasingly relying on a broader food and beverage portfolio alongside its established tea and salt businesses.
Key Takeaways
- Net profit: Consolidated group net profit increased 16% year-on-year to ₹470.14 crore.
- Revenue: Revenue from operations rose 14% to ₹5,661.13 crore.
- Operating performance: EBITDA grew 18% to ₹794 crore, with the margin expanding to 14%.
- India business: Underlying volume growth in the India branded business reached 11%.
- Growth businesses: Emerging businesses expanded 40% and accounted for 38% of the India business.
- Strong performers: Tata Sampann grew 57%, ready-to-drink beverages increased 47%, and Tata Starbucks revenue rose 15%.
- Areas of weakness: Indian tea volumes remained flat, while international revenue fell 2% in constant-currency terms.
Tata Consumer Products Q2 FY27 Results: Key Financial Figures
Tata Consumer’s September-quarter performance showed improvements in revenue, operating profit and consolidated earnings compared with the corresponding quarter of the previous financial year.
| Financial metric | Q2 FY27 | Q2 FY26 | Year-on-year change |
|---|---|---|---|
| Revenue from operations | ₹5,661.13 crore | ₹4,965.90 crore | +14.0% |
| Consolidated group net profit | ₹470.14 crore | ₹406.51 crore | +15.6% |
| Consolidated EBITDA | ₹794 crore | Approximately ₹673 crore | +18% |
| EBITDA margin | 14.0% | 13.6% | +40 basis points |
| Profit before exceptional items and tax | ₹632.28 crore | ₹523.28 crore | +20.8% |
Source: Tata Consumer Products’ official results and Fortune India. Figures are rounded where indicated.
The numbers indicate that revenue growth was accompanied by stronger operating profitability. EBITDA grew faster than sales, while the margin expansion suggests the company retained a greater proportion of revenue as operating earnings before interest, taxes, depreciation and amortisation.
Profit before exceptional items and tax increased by approximately 21%, outpacing revenue growth. This indicates an improvement in underlying earnings performance, although the company’s future margins will continue to depend on commodity prices, pricing decisions and product mix.
India Business Leads Revenue Growth
The India branded business recorded underlying volume growth of 11% during Q2 FY27. Volume growth is an important indicator because it measures the increase in quantities sold, helping distinguish demand-led expansion from revenue increases driven mainly by price changes.
Salt was one of the key contributors. Revenue from the salt business rose 15% year-on-year, supported by strong volumes and pricing actions. The business benefited from demand for an everyday household product with a broad distribution network.
The broader India business also gained from the expansion of newer categories, including packaged foods, health-oriented products and ready-to-drink beverages. These businesses are becoming increasingly important to Tata Consumer’s efforts to diversify beyond its established tea and salt portfolio.
However, tea remained a softer area. Indian tea volumes were flat amid subdued category demand, while revenue declined marginally following pricing actions. This suggests that price increases have not translated into stronger volume growth in the category.
Tata Sampann and Ready-to-Drink Products Deliver Strong Growth
Tata Consumer’s newer businesses continued to outperform the company’s overall growth rate.
| Business or category | Q2 FY27 performance |
|---|---|
| Growth businesses combined | +40% |
| Tata Sampann | +57% |
| Ready-to-drink beverages | +47% |
| Capital Foods and Organic India combined | +15% |
| Domestic revenue of Capital Foods and Organic India | +24% |
| Salt revenue | +15% |
Source: Tata Consumer Products.
Tata Sampann’s performance was supported by strong volumes across its core pulses and spices categories, as well as newer offerings such as cold-pressed oils and dry fruits. Its 57% growth rate significantly exceeded the group’s overall revenue expansion.
The ready-to-drink business grew 47%, supported by wider distribution, premiumisation and product innovation. This category offers Tata Consumer an opportunity to participate in changing consumption habits and expand its presence beyond traditional packaged foods.
Capital Foods and Organic India reported combined revenue growth of 15%. Shipping disruptions affected their export business, but domestic revenue increased 24%, indicating stronger performance in the Indian market.
Taken together, the growth businesses expanded 40% and accounted for 38% of the India business. Their increasing contribution is strategically important because it reduces the company’s dependence on mature categories and creates additional opportunities for cross-selling and distribution-led growth.
International Business Faces a Challenging Environment
Tata Consumer’s international business reported revenue growth of 7% in rupee terms. However, revenue declined 2% in constant-currency terms, reflecting a high comparison base and weaker conditions in some overseas markets.
In the United Kingdom, continued heatwave conditions affected category consumption. The company said its Tetley brand nevertheless outperformed the category.
In Canada, the business grew ahead of the category in both regular and specialty tea segments. These differences illustrate why international performance should be assessed market by market rather than through a single consolidated growth number.
Currency movements also matter when evaluating multinational consumer companies. Revenue growth measured in rupees can differ from constant-currency growth because exchange-rate movements affect the reported value of overseas sales.
Tata Starbucks Revenue Rises 15%
Tata Starbucks recorded 15% revenue growth in Q2 FY27, which the company described as a multi-quarter high. Strong same-store sales growth supported the performance.
The business ended the quarter with 505 stores across 81 Indian cities after opening seven net new outlets, including two Reserve stores.
Store expansion remains an important part of the partnership’s growth strategy, but same-store sales are also significant because they indicate how existing outlets perform without relying solely on opening additional locations.
The company said Tata Starbucks recorded its fifth consecutive quarter of positive same-store sales growth. Sustaining that trend will be important as the chain expands into more markets and continues to build its premium positioning.
Product Innovation and AI Initiatives
Tata Consumer launched 22 products during the quarter across health and wellness, convenience and premiumisation categories. These launches reflect the company’s effort to respond to evolving consumer preferences and build additional revenue streams.
The company is also advancing digital transformation through AI-led initiatives across sales and operations. Such projects can potentially improve demand forecasting, distribution planning, productivity and the efficiency of routine business processes.
However, the company has not attributed a specific amount of Q2 revenue or profit growth to AI initiatives. Their financial impact should therefore be treated as a longer-term operational opportunity rather than a direct explanation for the quarter’s results.
What the Results Mean for Tata Consumer Products
The September-quarter results demonstrate that Tata Consumer is generating growth from several parts of its portfolio, particularly emerging food and beverage categories. Stronger EBITDA growth and margin expansion also indicate that the company improved operating performance alongside revenue growth.
At the same time, weaker tea demand and mixed international performance remain important considerations. Input costs, competitive pricing and the ability to sustain growth in newer categories will influence whether the company can continue expanding margins.
Investors will also need to distinguish consolidated earnings from standalone results. Consolidated figures include subsidiaries and the group’s share of results from associates and joint ventures, while standalone figures cover the parent company. The two measures can move in different directions because of their different business coverage and exceptional items.
The Bigger Picture
Tata Consumer’s results reflect a broader change in India’s packaged-food and beverage industry. Established categories such as tea remain important, but companies are increasingly investing in convenience foods, health-oriented products, premium beverages and new distribution channels to reach consumers.
The rapid expansion of Tata Sampann and ready-to-drink products suggests that portfolio diversification is becoming a meaningful contributor to growth. If these businesses continue scaling while maintaining healthy margins, they could gradually strengthen the group’s overall earnings profile. Nevertheless, their current growth rates should not automatically be assumed to continue at the same pace.
FAQs
1. What was Tata Consumer Products’ Q2 FY27 net profit?
Tata Consumer Products reported consolidated group net profit of ₹470.14 crore for the quarter ended September 30, 2026, up approximately 16% from ₹406.51 crore a year earlier.
2. What was Tata Consumer Products’ Q2 FY27 revenue?
Revenue from operations increased 14% year-on-year to ₹5,661.13 crore, compared with ₹4,965.90 crore in Q2 FY26.
3. How much did Tata Consumer’s EBITDA increase?
Consolidated EBITDA rose 18% to ₹794 crore. The EBITDA margin expanded by 40 basis points year-on-year to 14%.
4. Which Tata Consumer businesses performed best in Q2 FY27?
Tata Sampann recorded 57% revenue growth, while the ready-to-drink business grew 47%. Tata Starbucks revenue increased 15%, and the company’s combined growth businesses expanded 40%.
5. Why was Tata Consumer’s tea business weaker?
Indian tea volumes remained flat amid subdued category demand, and revenue declined marginally following pricing actions. International performance was also affected by a high comparison base and heatwave-related weakness in UK tea consumption.
Looking Ahead
Tata Consumer Products is expected to remain focused on strengthening its core businesses while scaling higher-growth categories. The company’s ability to sustain volume growth, manage input costs and expand the contribution of emerging brands will be central to its next phase of performance.
Investors will watch whether strong growth in Tata Sampann, ready-to-drink products and Tata Starbucks continues, and whether the company can maintain operating-margin improvements. The latest results provide evidence of broad-based growth, but sustained profitability will depend on execution, consumer demand and conditions across domestic and international markets.
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