Tata Consumer Products (TATACONSUM) Q1 25/26 earnings summary

Executive summary

• Consolidated revenue grew 10% year-over-year, driven by double-digit growth in core India tea and salt businesses and 6.8% underlying volume growth in India branded business.

• Group net profit increased 15% year-over-year, with EPS up 12% and support from improved share of associates, joint ventures, and exceptional items.

• Growth businesses grew 7%, below expectations due to weather impacts and transitory issues, but Tata Sampann posted 27% growth.

• International business delivered 5% constant currency growth, led by strong US coffee performance, while Canada and UK were softer.

• EBITDA declined 8%, with margin down 250 basis points to 12.9%, mainly due to higher tea costs and coffee price corrections.

Financial highlights

• Consolidated revenue reached ₹4,779 crore, up 10% year-over-year; standalone revenue was ₹3,529 crore, up 10%.

• Group net profit (including JVs & Associates) grew 15% YoY to ₹332 crore; standalone net profit surged 286% YoY, driven by dividend income.

• EPS (Basic) increased 12% YoY to ₹3.38; standalone EPS: ₹7.22 vs ₹1.92 YoY.

• Profit before tax (PBT) was ₹465 crore, up 10% YoY; exceptional items contributed ₹80 crore to standalone and ₹45 crore to consolidated PBT.

• Net cash position improved to ₹397 crore as of June 30, 2025, compared to negative last year before the rights issue.

Outlook and guidance

• Tea margins expected to normalize to 34-37% gross margin by Q3 as commodity prices decline and pricing actions flow through.

• Growth businesses, including Capital Foods and Organic India, expected to stabilize and deliver 30% year-on-year growth from Q2.

• EBITDA margin targeted to reach 16% by Q3, with Q2 as a transition quarter.

• Coffee prices are declining but remain volatile; tea prices are favorable, with a cautiously optimistic outlook.

• Non-branded business profits affected by reversal of prior year fair value gains due to easing coffee prices.