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Informist, Monday, Nov. 3, 2025

 

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--Tata Consumer Jul-Sept consol net profit INR 4.04 bln
--Analysts saw Tata Consumer Jul-Sept consol net profit at INR 3.64 bln
--Tata Consumer Jul-Sept consol revenue INR 49.66 bln
--Analysts saw Tata Consumer Jul-Sept consol revenue at INR 47.69 bln
--Tata Consumer Jul-Sept consol PAT INR 4.04 bln vs INR 3.64 bln year ago
--Tata Consumer Jul-Sept consol revenue INR 49.66 bln vs INR 42.14 bln yr ago
--Tata Consumer Apr-Sept consol PAT INR 7.39 bln vs INR 6.55 bln year ago
--Tata Consumer Apr-Sept consol revenue INR 97.45 bln vs INR 85.67 bln yr ago
--Tata Consumer Jul-Sept consol material cost INR 19.84 bln vs INR 16.41 bln
--Tata Consumer Jul-Sept India branded sales INR 31.22 bln vs INR 26.55 bln
--Tata Consumer Q2 international branded sales INR 12.88 bln vs INR 11.16 bln
--Tata Consumer shares at INR 1,177.50, up 1.1% vs down 0.2?rlier
--Tata Consumer Q2 consol EBITDA INR 6.75 bln, up 7% on year
--Tata Consumer Q2 India branded ops underlying volume growth 14% on year
--Tata Consumer Q2 consol revenue up 16% on year in constant currency
--Tata Consumer Q2 intl ops revenue up 9% on yr in constant currency
--Tata Consumer Q2 consol EBITDA margin 13.6%, down 130 bps on year
--Tata Consumer Q2 non-branded sales at INR 5.90 bln, up 28% on year
--Tata Consumer Q2 India beverage sales INR 15.86 bln, up 15% on year
--Tata Consumer Q2 India foods sales INR 16.32 bln, up 19% on year
--Tata Consumer Q2 India packaged beverages revenue up 12% YoY, volumes up 5% 
--Tata Consumer Q2 India salt revenue up 16% on year, volumes up 9% 
--Tata Consumer Jul-Sept salt market share growth flat on year 
--Tata Consumer Q2 ready-to-drink net revenue INR 1.92 bln, up 25% on year 
--Tata Consumer Jul-Sept tea market share down 80 bps on year 
--Tata Consumer Q2 ready-to-drink ops volume up 31% on year 
--Tata Consumer: Tata Sampann sales grew 40% on year in Jul-Sept 
--Tata Consumer Jul-Sept value-added salts up 23% on year 
--Tata Consumer: Jul-Sept UK sales down 5% in constant currency on high base 
--Tata Consumer: Jul-Sept US sales up 21% on year in constant currency 
--Tata Consumer: Jul-Sept Canada sales up 7% on year in constant currency 
--Tata Consumer: Jul-Sept Canada sales rose on yr on growth in specialty ops 

 

By Avishek Rakshit

 

KOLKATA – Increasing sales in India backed by volume and pricing growth and a rebound in global sales led Tata Consumer Products Ltd. to report its highest top line growth in 18 quarters in the September quarter. Owing to higher revenue, the profit increased as well and beat the Street's estimates.

 

Tata Consumer reported growth of nearly 11% on year in the consolidated net profit at a little over INR 4 billion in the September quarter, against the Street's forecast of INR 3.6 billion. The company's consolidated revenue increased 17.8% on year to INR 49.7 billion, against the projection of INR 47.7 billion.

 

Importantly, as against the consensus estimate of a 22?cline in its profit in the September quarter, Tata Consumer surprised the Street with profit growth. Just after the results were made public, the company's stock rose 1.1% to INR 1,177.5, against down 0.2?fore the results on the National Stock Exchange.

 

The country's second-largest tea retailer's revenue from domestic tea, coffee, and other beverage sales rose 15% on year to INR 15.9 billion and foods sales in India increased at a higher growth rate of 19% on year to INR 16.3 billion. The non-branded business in India, which largely comprises solubles and interests in plantations, rose 28% on year to INR 5.9 billion. Revenue from overseas markets, namely the US, UK and Canada, increased 9% on year to INR 11.7 billion.

 

The company's core business in India, which comprises tea, coffee, salt and other foods product sales, recorded a second consecutive quarter of double-digit growth in both tea and salt sales and the foods business under the Tata Sampann brand continued its strong growth momentum during the September quarter. The growth businesses of the company, which are the emerging key product categories comprising 32% of its total business in India, registered 27% top line growth.

 

"Despite the short-term challenges posed by the GST transition, Capital Foods and Organic India (inorganic brands) recorded steady growth on a combined basis and strengthened their portfolio with innovative launches," Sunil D'Souza, managing director and chief executive officer of Tata Consumer, said in a statement. "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."

 

The operating performance of the company's branded business improved during the September quarter, driven by tapering tea cost inflation in India, which was partly offset by coffee cost inflation in global markets. Higher investments on brands also hit margins to some extent. The non-branded business margins were impacted by reversal of fair value gains in the previous financial year.

 

The company's profit before exceptional items and tax at INR 5.2 billion was up 23% on year on account of higher operating profits and lower finance costs.

 

Tata Consumer's earnings before interest, tax, depreciation, and amortisation increased 7% on year to INR 6.8 billion, but the EBITDA margin contracted 130 basis points on year to 13.6%.

 

BEVERAGE SALES

Tata Consumer's revenues from its tea business in India grew 12%, backed by 5% volume growth which was broad-based across brands and segments. However, in an increasingly competitive environment witnessed by the bounceback of local brands and unbranded tea sales growth, Tata Consumer lost market share by 80 basis points on year despite posting volume growth. The company launched a category-first energy tea with added caffeine in select markets under the Tata Tea Agni brand during the quarter.

 

Although the company does not declare its tea sales in India and abroad, sector analysts estimate it to account for at least 70% of the top line from total beverage sales in India and abroad. Beverages sales in India and abroad account for over 55% of the company's revenue.

 

While domestic coffee sales grew 56% in the September quarter, the company's margins showed a healthy recovery, supported by favourable input costs beginning to flow through. Prices of tea at auctions, at which tea retailers like Tata Consumer procure tea, fell to INR 204 a kg in the September quarter from INR 221 a kg in the June quarter. Although Tata Consumer procures tea at auctions, the company also buys a substantial quantity of tea directly from plantations at pre-determined prices which do not depend on market forces.

 

The company's plantations business housed under Amalgamated Plantations Pvt. Ltd. reported profit growth of 20% on year at INR 94.6 million, which strengthened the September quarter consolidated profit.

 

The ready-to-drink portfolio delivered 31% volume growth and 25% value growth despite headwinds from unseasonal rains and heightened competitive intensity in the September quarter. Tata Copper+ branded packaged water sustained its strong performance, recording 36% growth during the quarter.

 

Tata Consumer also re-entered the caffeine energy segment with Zip Zap - India's first still-based energy drink – during the September quarter. 

 

FOODS SALES

The foods business in India, which accounts for 33% of the top line, registered healthy 19% on year top line growth in the September quarter.

 

Revenues from the salt business grew 16% on year, backed by 9% volume growth, and value-added salts, which are sold at premium price points, grew 23% in the September quarter. However, like tea, the company was not able to gain any market share despite higher sales volumes on account of competitive intensity in the country and the company's market share remained flat. Although Tata Consumer does not disclose its market share in salts, sector analysts estimate it to be around 55%.

 

The Tata Sampann branded organic portfolio of food products delivered a notable 40% sales growth during the quarter, aided by new launches and innovations. Gravy Masala Mixes were launched with four hyper-regional blends for restaurant-style curries at home and the Tata Sampann brand introduced a range of unpolished millets to champion nutrition and meet rising consumer demand.

 

The inorganic foods business housed under the Capital Foods and Organic India brand grew 16% on year, including international operations. However, Capital Foods' sales, especially in modern trade, were adversely impacted in the September quarter following the GST rate reduction announcement. Capital Foods accelerated innovation with multiple new product launches during the quarter - Chings Chilli Oil, Korean Ramen, and Korean Kimchi noodles.

 

GLOBAL BEVERAGES

Although Tata Consumer reported 9% top line growth in constant currency in its global operations, the company suffered a setback in the UK, where sales fell 5% on year on account of a high base.

 

Strong performance of coffee in the US drove the revenue growth at 21% on year in that country, where Tata Consumer has 4.1% market share in coffee bags. In Canada, revenue grew 7%, primarily driven by growth in specialty teas and the Tetley brand of tea continued to retain its market leadership position in that country.

 

However, in the UK, where the company has 19.2% market share in the value-pack black tea category, sales fell owing to a high base. Nevertheless, market penetration of the Teapigs brand of tea increased 35% on year and sales of Good Earth brand of tea grew 100% on year.

 

Tata Consumer's EBITDA from international sales declined 17% on year with a 400-basis-point margin contraction due to lower gross margins arising from high coffee costs.

 

STARBUKS PERFORMANCE

In the Starbucks joint venture, where Tata Consumer has 50% stake, revenue for the September quarter grew 8% on year with positive same-store sales growth. Seven new stores were opened in the September quarter, with footprint growth across both metros and smaller cities, including new store formats taking the total store count to 492 stores across 80 cities.

 

The company also extended coffee experiential store formats in Mumbai, Hyderabad, and Chennai. It also introduced new products in Starbucks stores and improved regional relevance with a special Pujo menu in east India which furthered sales.

 

During Apr-Sept, Tata Consumer's revenue increased 13.8% on year to INR 97.35 billion and profit increased 12.8% on year to INR 7.4 billion.

 

At 1426 IST, shares of Tata Consumer were up 3% at INR 1,200.10 on the National Stock Exchange.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Avishek Dutta

 

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