Tata Consumer Products (TATACONSUM) Q3 25/26 earnings summary

Executive summary

• Achieved 15% year-over-year revenue growth in Q3 FY26, surpassing INR 5,000 crore in quarterly revenue for the first time, with strong growth in both Branded and Non-Branded segments.

• India branded business posted 15% underlying volume growth; India tea up 3% as price reductions were passed to consumers; salt revenue rose 14% on 15% volume growth.

• Growth businesses now contribute 30% of India business, growing at 29% and exceeding INR 1,000 crore in quarterly revenue; Tata Sampann up 45%, RTD up 26%.

• International business delivered 11% constant currency revenue growth, led by US coffee.

• Consolidated EBITDA grew 26% year-over-year, with margin expansion of 120 bps to 14.2%.

Financial highlights

• Q3 revenue: INR 5,112 crore, up 15% year-over-year; EBITDA: INR 728 crore, margin at 14.2%, up 120 bps year-over-year.

• Group consolidated net profit for the quarter was INR 385 crore, up 36% year-over-year.

• Profit before tax: INR 563 crore, up 38% year-over-year.

• YTD revenue: nearly INR 15,000 crore, up 14%; group net profit before exceptionals up 17% to INR 1,137 crore.

• EPS (basic) for Q3FY26: 4.04 (+41% YoY); for 9MFY26: 11.50 (+16% YoY).

Outlook and guidance

• Maintains mid- to high single-digit growth guidance for tea and salt businesses.

• Growth businesses expected to sustain 30% growth rate in the near term.

• EBITDA margin target of 14.5%-15% for Q4, with a long-term goal of 17%+ for the foods business.

• Margin expansion in India is expected to continue, aided by lower tea cost inflation, though international margins may be pressured by coffee cost inflation and higher brand investments.

• Innovation pipeline remains strong with 15 new product launches in the quarter.