Tata Consumer posts 14.7% profit growth in Q1 FY26, driven by India business

New Delhi: Tata Consumer Products (TCPL) reported a 14.7% rise in consolidated net profit to Rs 331.75 crore for the June quarter, compared to Rs 289.25 crore in the same period last year. The increase was driven primarily by performance in the India business, cording to a regulatory filing.

Revenue from operations rose 9.8% year-on-year to Rs 4,778.91 crore, up from Rs 4,352.07 crore. The company’s overall branded business grew 10.6 per cent to Rs 4,270.9 crore, with the India branded business contributing Rs 3,125.7 crore, a growth of 11%.

“The growth was led by India business, which was up 11%. Core businesses of tea and salt had a very good quarter, supported by underlying volume gains,” said Ashish Goenka, Group Chief Financial Officer at TCPL, in a post-results interaction.

However, the ready-to-drink (RTD) category saw a muted performance, attributed to weather-related disruptions. “RTD got impacted by unseasonal rain, which has to be seen from the other beverages as well. Apart from higher competitive intensity in that category, the good news there is that we still had a volume growth of 3%,” Goenka said, as per the  report.

The company’s water business recorded a 13% volume growth during the quarter.

Newly acquired businesses, Capital Foods and Organic India, encountered operational hurdles. “I think it had a decent quarter, but we could have done more. There were some transitional issues which impacted us this quarter. There were some capacity constraints in a few categories,” Goenka noted.

The India foods business revenue grew 14% year-on-year in the June quarter.

TCPL also continued to see momentum from newer retail formats. Sales through e-commerce channels, including quick commerce, grew by 61%, while modern trade rose 21%. “Within e-commerce, quick commerce now has two-thirds share,” Goenka said, adding that TCPL “will continue to leverage the growth of that channel and continue to participate in it.”

Internationally, TCPL’s branded business rose 9.44% to Rs 1,145.20 crore. “On the international side, business continues to grow in line with our expectations. The overall growth on an underlying basis was 5% and within that, the US is coming back on growth,” he said.

As per the report, revenue from non-branded operations, which include TCPL’s plantation and extraction business in tea and coffee, rose 7.02% to Rs 535.76 crore.

Total expenses for the quarter were Rs 4,354.66 crore, up 10.9%. Total income, including other income, rose 9.76% to Rs 4,820.08 crore.

Tata Starbucks, the 50:50 joint venture with Starbucks Corporation, added six new stores during the quarter, bringing the total count to 485 outlets across 80 cities.

Commenting on the overall performance, Managing Director and CEO Sunil D’Souza said, “We delivered a steady topline growth of 10% in Q1 FY26, with double-digit net profit growth. During the quarter, we recorded double-digit growth in the core India business across both tea and salt, backed by volume growth. Tata Sampann continued its strong trajectory, with new launches and innovations performing well. However, unfavourable weather impacted volume growth in the RTD business.”

Shares of Tata Consumer Products closed at Rs 1,062.65 on Wednesday, down 1.99% on the BSE.