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

Executive summary

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

• Growth businesses grew 7%, with Tata Sampann up 27%; international business saw 5% constant currency growth, led by strong US coffee performance.

• EBITDA declined by 8% year-over-year, primarily due to higher tea costs and coffee price corrections; margin at 12.9%, down 250 bps.

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

• Amalgamation of three wholly owned subsidiaries effective April 1, 2024, with comparatives restated.

Financial highlights

• Consolidated revenue: ₹4,779 crore, up 10% year-over-year; EBITDA: ₹615 crore, down 8% year-over-year.

• Group net profit (including JVs & Associates) grew 15% year-over-year to ₹332 crore; EPS (Basic) increased 12% to ₹3.38.

• Standalone net profit surged 286% year-over-year, driven by dividend income from subsidiaries; exceptional items contributed ₹80 crore to standalone and ₹45 crore to consolidated profit before tax.

• Non-branded business revenue grew 7%; India business revenue up 11%.

• Net cash position: ₹397 crore as of June 30, 2025, improved from negative last year post-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 return to 30% year-over-year growth from Q2.

• Ready-to-drink beverages and Nourishco expected to exceed 30% top-line growth from Q2/Q3 as pricing corrections cycle through.

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

• EBITDA margin guidance of 16% by Q3, with Q2 as a transition quarter.