Tata Consumer Products reported a 16 per cent rise in profit after tax to ₹470 crore for Q2FY27. The company launched 22 new products as it focused on high-growth segments. Despite rising input costs, Ebitda grew 17 per cent to ₹780 crore, showing that discounted valuations helped offset recent market headwinds.
TCPL has generated double-digit revenue growth across segments (except tea) for the last five quarters. The portfolio is pivoting to high-growth segments like Sampann, Soulfull, Ready to Drink (RTD), Capital Foods, Organic India, etc. This should accelerate revenue growth. TCPL launched 22 new products in Q2FY27.
The gross margin contracted 41 basis points (bps) Y-o-Y and 99 bps quarter-on-quarter (Q-o-Q) to 41.7 per cent due to input-inflation. But the company's earnings before interest, taxes, depreciation, and amortisation (Ebitda) grew 17 per cent Y-o-Y to ₹780 crore, with margin expansion of 31 bps Y-o-Y to 13.8 per cent. India A&P (advertising and promotion) spends were 5.5 per cent of sales in Q2, and 5.8 per cent in the first half (H1) of FY27. Interest costs reduced 23 per cent Y-o-Y, pushing up profit before tax (PBT). The reported profit after tax (PAT) grew 16 per cent to ₹470 crore, while adjusted PAT after exceptional items was up 18 per cent Y-o-Y to ₹480 crore.