Tata Consumer Products reported a 16.2% year-on-year increase in consolidated net profit to ₹469.30 crore for the second quarter of FY2026-27, supported by stronger demand for packaged foods and beverages. Revenue from operations rose 14% to ₹5,661.13 crore for the quarter ended September 30, 2026, while EBITDA increased 19.7% to approximately ₹804 crore. The company’s EBITDA margin also improved to 14.2% from 13.5% a year earlier, reflecting stronger operating performance.
The results, announced on October 26, 2026, highlight the growing contribution of Tata Consumer’s newer businesses, including Tata Sampann, NourishCo, Capital Foods and Organic India. The company’s India business delivered 17% revenue growth, while its growth businesses expanded 40% and accounted for 38% of the India business. However, tea demand remained subdued, and standalone net profit declined because of exceptional expenses, showing that the performance of the parent company differed from that of the consolidated group.
Key Takeaways
- Consolidated net profit: Increased 16.2% to ₹469.30 crore from ₹404.46 crore in Q2 FY26.
- Revenue growth: Consolidated revenue from operations rose 14% to ₹5,661.13 crore.
- EBITDA: Grew 19.7% to approximately ₹804 crore, with the margin expanding to 14.2%.
- India business: Revenue increased 17% to ₹3,666.13 crore, supported by 11% underlying volume growth in the India branded business.
- Growth businesses: Revenue rose 40%, with these businesses contributing 38% of the India business.
- Standalone profit: Fell approximately 15% to ₹242.81 crore, partly due to exceptional expenses.
- Tea demand: India tea volumes remained flat amid subdued category demand.
Tata Consumer Q2 FY27 Results: Key Financial Figures
The following table compares the company’s consolidated performance in Q2 FY27 with the corresponding quarter of FY26.
| Financial metric | Q2 FY27 | Q2 FY26 | YoY change |
|---|---|---|---|
| Revenue from operations | ₹5,661.13 crore | ₹4,965.90 crore | +14.0% |
| Net profit attributable to owners | ₹469.30 crore | ₹404.46 crore | +16.0% |
| EBITDA | Approx. ₹804 crore | Approx. ₹671 crore | +19.7% |
| EBITDA margin | 14.2% | 13.5% | +0.7 percentage points |
| Profit before exceptional items and tax | ₹632.28 crore | ₹523.28 crore | +20.8% |
Source: Tata Consumer Products’ Q2 FY27 results and NDTV Profit. Figures are rounded where indicated.
The figures show that profit grew faster than revenue, while EBITDA growth exceeded both. The improvement in operating margin suggests that stronger business performance helped offset pressure from higher input costs.
India Business Leads Revenue Growth
Tata Consumer’s India business remained the main growth driver during the quarter. Revenue increased 17% year-on-year to ₹3,666.13 crore, compared with approximately ₹3,122 crore in Q2 FY26.
The India branded business recorded underlying volume growth of 11%, indicating that higher sales were supported by increased volumes rather than relying entirely on price changes. The performance was led by salt, packaged foods and ready-to-drink beverages, although the tea category continued to face subdued demand.
The company’s expansion into convenience foods and health-oriented products is also becoming increasingly important. These categories offer opportunities to reach new customers and reduce dependence on established products whose growth may be slower.
Salt and packaged foods deliver strong growth
Tata Salt revenue increased 15% during the quarter, supported by strong volume growth and pricing actions. The brand remains an important part of Tata Consumer’s domestic portfolio.
Tata Sampann recorded 57% revenue growth, driven by continued demand across pulses, spices and newer categories such as cold-pressed oils and dry fruits. The performance highlights the company’s effort to expand beyond traditional beverages into packaged food products.
The ready-to-drink business also performed strongly, with revenue rising 47%. Distribution expansion, premiumisation and new product launches supported growth across the portfolio.
Capital Foods and Organic India expand
Capital Foods and Organic India together recorded 15% revenue growth during the quarter. Export shipping disruptions affected the combined performance, while domestic revenue for the businesses grew 24%.
These brands give Tata Consumer exposure to convenience foods, health and wellness products, and other consumer categories beyond tea and salt. Their continued expansion could help diversify the company’s revenue base over time.
International Business Faces Uneven Demand
Tata Consumer’s international business recorded 7% revenue growth in reported terms, although revenue declined 2% in constant-currency terms. The comparison was affected by a high base in the year-ago period.
In the United Kingdom, continued heatwave conditions affected tea consumption. Tetley nevertheless outperformed the broader category, according to the company. In Canada, the business recorded growth ahead of the category in both regular and specialty segments.
The results illustrate why reported growth and constant-currency growth should be considered separately. Currency movements can affect the value of overseas revenue when converted into rupees, while local demand determines the underlying performance of the business.
Tata Starbucks Records Strong Sales Growth
Tata Starbucks delivered 15% revenue growth during the quarter, supported by stronger same-store sales performance. The business ended the quarter with 505 stores across 81 cities in India.
The company opened seven net new stores during the quarter, including two Reserve stores. Store expansion and improved performance at existing locations provide additional opportunities for growth in India’s premium coffee market.
However, store growth also requires investment in staff, leases, equipment and operations. Revenue expansion will need to translate into sustainable profitability as the business continues to scale.
Why Standalone Net Profit Declined
While consolidated profit increased, Tata Consumer’s standalone results showed a different trend.
| Standalone metric | Q2 FY27 | Q2 FY26 | YoY change |
|---|---|---|---|
| Revenue from operations | ₹4,207.50 crore | ₹3,595.22 crore | +17.0% |
| Profit before exceptional items and tax | ₹418.91 crore | ₹384.63 crore | +8.9% |
| Net profit | ₹242.81 crore | ₹285.19 crore | -14.9% |
Source: Tata Consumer Products’ results.
Standalone revenue increased 17%, and profit before exceptional items and tax rose approximately 9%. Nevertheless, standalone net profit fell to ₹242.81 crore from ₹285.19 crore.
The decline reflected exceptional expenses, including a fair-value loss of approximately ₹57 crore on a financial instrument held in an associate and an adjustment of around ₹7 crore relating to contingent consideration paid on a business acquisition.
The distinction matters because standalone results cover the parent company, whereas consolidated results include subsidiaries and the group’s share of results from associates and joint ventures. The consolidated figures provide a broader view of the group’s performance.
Growth Businesses Become More Important
Tata Consumer said its growth businesses expanded 40% in Q2 FY27 and accounted for 38% of its India business. The portfolio includes brands and categories such as Tata Sampann, NourishCo, Capital Foods and Organic India.
The company also introduced 22 new products during the quarter across health and wellness, convenience and premiumisation categories.
This strategy is intended to broaden the product portfolio and capture changing consumer preferences. Packaged foods, functional beverages and premium products may provide additional growth opportunities, although their long-term contribution will depend on customer adoption, distribution and profitability.
The company is also advancing AI-led initiatives across sales and operations to improve productivity, according to its results announcement.
The Bigger Picture
Tata Consumer’s Q2 FY27 results demonstrate that its growth strategy is increasingly extending beyond tea and traditional packaged beverages. Strong performances in salt, packaged foods, ready-to-drink products and newer brands helped the company deliver double-digit revenue growth and an improvement in consolidated profitability.
The next challenge is to sustain that growth while managing raw-material inflation, uneven international demand and subdued tea consumption. The expansion of newer businesses offers diversification, but investors will need to monitor whether revenue growth translates into durable earnings and cash generation.
FAQs
1. What was Tata Consumer Products’ Q2 FY27 net profit?
Tata Consumer Products reported consolidated net profit attributable to owners of ₹469.30 crore for Q2 FY27, up approximately 16.2% from ₹404.46 crore in Q2 FY26.
2. How much did Tata Consumer’s revenue grow in Q2 FY27?
Consolidated revenue from operations increased 14% year-on-year to ₹5,661.13 crore for the quarter ended September 30, 2026.
3. Why did Tata Consumer’s standalone profit decline?
Standalone net profit declined approximately 14.9% to ₹242.81 crore, partly because of exceptional expenses, including a fair-value loss on a financial instrument held in an associate and an acquisition-related adjustment.
4. Which Tata Consumer businesses performed best?
Tata Sampann recorded 57% revenue growth, the ready-to-drink business grew 47%, and Tata Salt revenue increased 15%. The company’s overall growth businesses expanded 40%.
5. What is the outlook for Tata Consumer Products?
The company’s outlook will depend on sustaining domestic volume growth, expanding newer food and beverage categories, managing input costs and improving performance across international markets. Continued growth in newer businesses could help diversify revenue, but profitability and cash generation remain important measures to monitor.
Looking Ahead
Tata Consumer Products enters the second half of FY27 with stronger consolidated revenue and profit, supported by its India business and faster-growing packaged-food and beverage categories. Sustaining volume growth while managing input costs and expanding distribution will be important for maintaining momentum.
Investors will also watch whether the company’s growth businesses continue to gain market share and contribute meaningfully to earnings. The September-quarter results show that the portfolio transformation is progressing, but future performance will depend on converting sales growth into consistent, sustainable profitability.
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