Tata Consumer Products Steps Up Expansion Across Growth Businesses, and Premium Segments, ready-to-drink (RTD) business recorded 41% revenue growth, Reports Strong Q1 FY27 Performance

Published at : Sep 13, 2026 12:11 PM (IST)

Total Views : 10

Tata Consumer Products Steps Up Expansion Across Growth Businesses, and Premium Segments, ready-to-drink (RTD) business recorded 41% revenue growth, Reports Strong Q1 FY27 Performance

Tata Consumer Products Limited reported a strong performance in Q1 FY27, with consolidated revenue rising 12% year-on-year to Rs. 5,349 crore and EBITDA growing 19%, supported by a 70-basis-point expansion in EBITDA margin to 13.6%. Growth businesses delivered their strongest-ever quarter, with revenue increasing 47% and now accounting for 36% of the India business. Tata Sampann grew 58%, RTD revenue rose 41%, while Capital Foods and Organic India reported combined growth of 35%. Net profit increased 29% to Rs. 427 crore.

The Print Times

Tata Consumer Products Limited delivered a strong performance in the first quarter of FY27, with consolidated revenue increasing 12% year-on-year to Rs. 5,349 crore, while EBITDA grew 19% and margins expanded by 70 basis points to 13.6%.

The company’s performance was supported by broad-based growth across its India business, particularly its growth businesses, which recorded their strongest-ever quarter. Growth businesses increased revenue by 47% year-on-year and now account for 36% of the India business, making the segment larger than the company’s India salt and tea & coffee businesses.

The company said its consolidated revenue growth translated into stronger profitability, with PBT increasing 27% and net profit rising 29% to Rs. 427 crore. Adjusted EPS stood at Rs. 4.67 per share, while reported EPS was Rs. 4.31.

The India business delivered 13% UVG, while India tea volumes increased 2% despite a prolonged summer. However, tea revenue declined 4%, as the company passed on the benefit of lower tea costs to consumers. India tea and coffee revenue stood at around Rs. 1,200 crore.

The company’s salt business recorded 7% revenue growth, led by 7% volume growth, despite a calibrated price increase in June. Tata Salt’s orange bag MRP was increased from Rs. 30 to Rs. 32, while value-added salts continued to perform strongly, registering 13% growth. India salt revenue crossed Rs. 1,000 crore.

Tata Sampann was one of the strongest performers during the quarter, with revenue growing 58%, driven by broad-based volume growth. The company reported growth across core categories as well as newer offerings, including dry fruits and cold-pressed oil, while whole spices also delivered another strong quarter.

The ready-to-drink (RTD) business recorded 41% revenue growth, supported by 38% volume growth. Growth was broad-based across the portfolio, including premium products such as Tata Gluco+ and Tata Copper Water. During the quarter, the company also launched two variants of Kombucha Zero, aimed at strengthening its premium RTD tea and coffee portfolio.

Capital Foods and Organic India continued to deliver strong growth. Capital Foods recorded revenue of Rs. 232 crore, up 40%, while Organic India reported revenue of Rs. 118 crore, up 27%. Their combined gross margin remained close to 50%. The company said it continues to focus on new launches to expand the addressable categories for both businesses. It also highlighted that innovation, advertising and promotion, and a restructuring of the go-to-market approach are beginning to show encouraging results.

International business grew 3% in constant currency and 16% on a reported basis. The U.S. business delivered 7% constant-currency growth and recorded its seventh consecutive quarter of share growth. The company said the U.S., UK and Canada businesses were impacted, particularly in June, by an unusually warm summer, with the impact more pronounced in the UK black tea category.

At the same time, Teapigs and Good Earth, the company’s specialty and fruit & herbal brands, continued to deliver strong growth and gain share in their respective segments. Canada revenue remained flat, although value share improved across both regular and specialty categories.

The company’s non-branded business declined 7%, or 10% in constant currency, as global coffee prices declined in line with expectations. Solubles, primarily a pass-through business, declined 12%, while plantation declined 8%. The company said proactive hedging helped mitigate some of the impact of coffee price corrections.

Starbucks delivered a strong quarter, with revenue increasing 11% year-on-year. The company was cycling a subdued quarter in the previous year, when store closures had impacted performance. Even after adjusting for this base effect, the business delivered mid-single-digit same-store sales growth. Tata Consumer Products also closed some cafes in the short term and relaunched Starbucks Rewards to drive customer engagement and visit frequency.

The company continued to invest behind its brands, with advertising and promotion spending at 6.1% in Q1. Its innovation strategy remains focused on three major pillars: health and wellness, convenience and premiumization. The company launched 14 new products during the quarter and said it has a strong innovation pipeline for the remainder of the year.

Tata Consumer Products also reiterated its focus on sustainability. The company is now a member of the Dow Jones World Index, following its incorporation on December 4, 2025. Its CRISIL rating moved from 61 to 67, while its ESG Risk rating improved from 62 to 68.

Overall, the company said the quarter represented a strong start to FY27, with growth businesses scaling rapidly, improved profitability across the India portfolio and continued momentum in international markets. The company remains focused on innovation, brand investment, sustainability and strengthening its growth businesses as key pillars of its future strategy.
 

Published at : Sep 13, 2026 12:11 PM (IST)

Total Views : 10