Tata Consumer Products reported a 16% rise in net profit to Rs 469 crore for Q2 FY27, while revenue grew 14% to Rs 5,661 crore. Strong performance in branded and ready-to-drink businesses helped the company. Meanwhile, Tata Starbucks saw 15% revenue growth and now has 505 stores across 81 cities.
Tata Consumer Products reported a 16% year-on-year rise in net profit to Rs 469 crore for Q2 FY27, with revenue up 14% to Rs 5,661 crore driven by strong growth in branded and RTD businesses.
The company's consolidated earnings before interest, tax, depreciation and amortisation (Ebitda) rose 16.6% year-on-year to Rs 783 crore during the quarter. Ebitda margin stood at 13.8% in Q2, compared with 13.5% a year earlier, in line with street estimates.
Tata Consumer Products' India branded business recorded underlying volume growth of 11% during the quarter. Its growth businesses, comprising ready-to-drink (RTD) beverages, Tata Sampann, Capital Foods and Organic India, grew 40% and accounted for 38% of the India business.
Salt revenue increased 15% during the quarter, supported by volume growth. Tata Sampann recorded 57% revenue growth, driven by higher volumes across its core pulses and spices categories, as well as newer categories such as cold-pressed oils and dry fruits.
The India tea business reported flat volumes amid subdued category demand. Revenue declined marginally as the gap between volume and value growth narrowed following pricing actions.
The RTD business recorded 47% revenue growth, supported by distribution expansion, premiumisation and new product launches.
Capital Foods and Organic India reported combined revenue growth of 15% during the quarter. Their performance was affected by shipping disruptions in the export business, while domestic revenue grew 24%.
The company launched 22 new products during the quarter across health and wellness, convenience and premiumisation categories.
Tata Consumer Products' international business revenue grew 7% year-on-year during the September quarter. Revenue declined 2% in constant-currency terms as the business faced a high base in the year-ago period.
Tata Starbucks recorded 15% revenue growth during the quarter, marking its highest same-store sales growth in several quarters. The business also reported its fifth consecutive quarter of positive same-store sales growth. Tata Starbucks ended the September quarter with 505 stores across 81 cities in India. It opened seven net new stores during the quarter, including two Reserve stores.