Tata Consumer Q1 Profit Jumps 28% YoY to ₹427 Cr as India Business Powers Growth

• Tata Consumer Products posted a 28% YoY rise in consolidated net profit to ₹427 crore in Q1 FY27, while revenue grew 12% to ₹5,349 crore.

• India business revenue rose 13%, supported by strong growth in coffee, ready-to-drink beverages and newer businesses.

• The company said lower tea costs in India helped margins, although higher coffee costs in the US and inflation in key inputs remained a challenge.

Tata Consumer Products reported a consolidated net profit of ₹427 crore for the April-June quarter (Q1 FY27), up nearly 28% year-on-year (YoY) from ₹334 crore in the same period last year.

Revenue from operations rose 12% to ₹5,349 crore, compared with ₹4,779 crore a year ago, while total expenses increased around 11% to ₹4,829 crore during the quarter.

On a sequential basis, net profit rose around 2% from ₹419 crore reported in the March quarter, although revenue slipped around 2% quarter-on-quarter (QoQ).

India Business Leads Growth Across Categories

Tata Consumer said its overall revenue growth of 12%, or 9% in constant currency terms, was driven by a 13% growth in its India business and 5% growth in its international business. However, its non-branded business declined 10% in constant currency terms.

Within India, revenue increased to ₹3,540 crore, while segment profit jumped 36% to ₹394 crore, according to the company's investor presentation.

The company said its coffee business recorded 24% revenue growth, while the ready-to-drink portfolio—which includes Tata Coffee Grand Cold Coffee, Tata Gluco+ and Tata Copper+ Water—reported 35% volume growth and 41% revenue growth. Salt revenue grew 7%, while tea volumes increased 2%, though tea revenue remained lower as the benefit of lower tea costs was passed on to consumers.

International Business, Newer Brands Support Growth

Tata Consumer said newer businesses continued to expand during the quarter. Capital Foods and Organic India reported revenues of ₹232 crore and ₹118 crore, respectively, with a combined gross margin of 49%.

The company's international business recorded 16% revenue growth, led by strong performance in the US market. Meanwhile, Tata Starbucks posted 11% year-on-year (YoY) revenue growth and ended the quarter with 498 stores.

The company said operating performance improved on the back of lower tea costs in India, partly offset by elevated coffee costs in the US, inflationary pressure on key raw materials and higher investments behind brands. Net profit margin improved to 7.99% from 6.94% a year ago.

Management Sees Growth Momentum Continuing

Commenting on the results, Managing Director and CEO Sunil D'Souza said the company delivered "yet another quarter of double-digit topline growth, backed by volume growth. Importantly, this translated to a consolidated net profit growth of 29%."

He said the India branded business continued to record "robust underlying volume growth reflecting continued focus on execution, category expansion and innovation." D'Souza added that Tata Consumer's growth businesses continued to gain scale, with Tata Sampann posting strong growth across dry fruits, cold-pressed oils, pulses and spices, while the ready-to-drink portfolio also delivered a strong quarter driven by its core brands and new product launches. He added that the international business maintained steady performance and remained margin accretive.

Looking ahead, D'Souza said the company remained focused on innovation and long-term growth. "Our innovation momentum continues with 14 new launches in Q1 and a roadmap in place to fuel our growth agenda this year. We remain focused on delivering sustainable profitable growth by strengthening and scaling our core and growth businesses and building a future-ready portfolio," he said.