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

Executive summary

• Achieved 15% year-over-year revenue growth in Q3 FY26, with all business segments delivering double-digit growth and India branded business posting 15% underlying volume growth.

• Growth businesses now contribute 30% of India business, growing at 29% and surpassing 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 (+31% revenue).

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

• Group consolidated net profit rose 36% year-over-year, driven by higher operating profits and lower finance costs.

Financial highlights

• Q3 revenue: INR 5,112 crore (+15% YoY); EBITDA: INR 728 crore (14.2% margin, +26% YoY); Group Net Profit: INR 385 crore (+36% YoY); PBT: INR 563 crore (+38% YoY).

• 9MFY26 revenue: INR 14,857 crore (+14% YoY); EBITDA: INR 2,019 crore (+8% YoY); Group Net Profit: INR 1,123 crore (+20% YoY).

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

• Net profit before exceptionals: INR 399 crore, up 130 bps YoY; cash reserves at INR 1,272 crore.

• EBIT margins expanded by 150 bps in Q3; consolidated operating margin: 11.13%; net profit margin: 7.52%.

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.

• Targeting 14.5%-15% EBITDA margin by Q4; long-term goal for foods business EBITDA margin is 17%+.

• Innovation pipeline remains strong with 15 new product launches in the quarter; innovation to sales ratio at 4.8%, aiming to cross 5%.

• International margins expected to normalize in about a quarter as price increases flow through; margin expansion in India expected to continue.

• The impact of new Indian labour codes will be monitored and accounted for as further rules are notified.