Tata Consumer Products (TATACONSUM) Q2 25/26 earnings summary

Executive summary

• Consolidated revenue grew 18% year-over-year in Q2FY26, with strong double-digit volume growth in India branded business and robust performance across core categories; India business up 18%.

• Growth businesses contributed 27% to the portfolio, with Tata Sampann up 40% and RTD beverages rebounding with 31% volume and 25% value growth.

• International business delivered 9% constant-currency growth, led by strong US performance; non-branded revenue rose 26% with normalized profitability.

• 25 new products launched in Q2, continuing a strong pace of innovation and maintaining A&P to sales at 7.4% in India.

• Group consolidated net profit for the quarter was ₹407 crore, up 11% year-over-year, despite a one-time tax credit in the prior year.

Financial highlights

• Q2FY26 consolidated revenue: ₹4,966 crore (+18% YoY); EBITDA: ₹675 crore (+7% YoY, margin 13.6%); Group Net Profit: ₹407 crore (+11% YoY); EPS for Q2FY26: 4.09 (+9% YoY).

• Standalone Q2FY26 net profit: ₹285 crore (+28% YoY); standalone revenue: ₹3,595 crore (+18% YoY).

• PBT before exceptional items: ₹523 crore (+23% YoY); cash reserves close to ₹1,000 crore; net cash position as of September 30, 2025: ₹968 crore.

• H1FY26 consolidated revenue: ₹9,745 crore (+14% YoY); EBITDA: ₹1,291 crore (-1% YoY); Group Net Profit: ₹738 crore (+12% YoY).

• Consolidated operating margin at 10.51%; net profit margin at 8.19% for the quarter.

Outlook and guidance

• Expect mid-to-high single-digit revenue growth in tea, with gross margins maintained at 34%-36%.

• Growth businesses expected to continue 30%+ growth, driven by low penetration and category expansion.

• Margin recovery anticipated, targeting 15% EBITDA by Q4, barring volatility in U.S. coffee; international margins may take another quarter to normalize.

• Continued focus on innovation, new product launches, and strengthening core businesses.