Tata Consumer Q1 profit climbs 29% on broad-based growth across businesses

Managing Director & CEO Sunil D’Souza

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Amit Vijay Mohile _12460

Tata Consumer Products reported a 29 per cent year-on-year increase in consolidated net profit at ₹427 crore for the June quarter, while revenue rose 12 per cent to ₹5,349 crore, supported by broad-based growth across its India businesses, premiumisation and contributions from recent acquisitions. EBITDA increased 19 per cent to ₹730 crore, with the EBITDA margin expanding 70 basis points to 13.6 per cent. Its India-branded business delivered 13 per cent underlying volume growth, reflecting momentum across both core and emerging categories.“Our business demonstrated resilience amid a challenging operating environment,” said Managing Director & CEO Sunil D’Souza. “We delivered broad-based growth across India and international businesses, while continuing to strengthen our portfolio through innovation and integration of the acquired brands.” He added that the company remained focused on “driving profitable growth” as it scaled newer categories and integrated recent acquisitions.The company’s accompanying disclosures also highlight how the business mix is changing. Tata Consumer’s growth businesses —Tata Sampann, ready-to-drink beverages (RTD), Soulfull, Vending, Capital Foods and Organic India — generated ₹1,314 crore during the quarter, overtaking the India tea and coffee business, which reported ₹1,234 crore in revenue.Their share of the India business increased to 36 per cent from 28 per cent a year earlier, marking an important milestone in the company’s diversification strategy.Premium categoriesThe disclosures show that these businesses have steadily increased their contribution from just 8 per cent of the India portfolio in FY21 to 36 per cent in the latest quarter. They also point to early gains from acquisitions, with Capital Foods and Organic India contributing ₹232 crore and ₹118 crore, respectively, while reporting a combined gross margin of 49 per cent. The company said “GTM restructuring initiatives [are] showing encouraging initial results”, indicating that integration efforts are beginning to translate into operational gains.The shift is also evident across operating categories. Tata Sampann recorded 58 per cent revenue growth during the quarter, the RTD business expanded 41 per cent on 35 per cent volume growth and coffee revenue increased 24 per cent. In contrast, India tea revenue declined 4 per cent despite a 2 per cent increase in volumes as lower tea costs were passed on to consumers.India segment profit rose 36 per cent to ₹394 crore, with margins improving to 11.1 per cent from 9.3 per cent, suggesting the richer product mix is beginning to support profitability.FMCG modelThe June-quarter performance suggests Tata Consumer’s transformation is moving beyond acquisitions and product launches to a measurable shift in its revenue mix. While tea and salt remain important franchises, an increasing share of growth is now coming from packaged foods, health and wellness products and premium beverages, broadening the company’s earnings base and reducing its reliance on its traditional tea-led business.Published on July 25, 2026