Tata Consumer Products announced strong Q2 FY’26 results, with revenue up 18% to approximately INR 5,000 crores. India branded business UVG grew by 14%. The company saw double-digit growth in tea and salt, with growth businesses increasing by 27%. International business grew by 9%. EBITDA increased by 7% with margin of 13.6%. The company launched 25 new products during the quarter.
Financial Performance
Tata Consumer Products reported an 18% increase in revenue for Q2 FY’26, reaching approximately INR 5,000 crores. Consolidated EBITDA grew by 7%, with a margin of 13.6%, representing a sequential expansion of 70 bps. The company’s India business is operating on a normalized EBITDA margin. In the first half, revenue reached close to INR 10,000 crores, a 14% increase, with all businesses delivering double-digit growth.
India Business
The India branded business saw UVG growth of 14%. Core India business experienced double-digit growth in both tea and salt. Growth businesses grew by 27%, with Sampann up by 40% and RTD showing strong recovery with 31% volume and 25% value growth.
International Business
International momentum continued, with a top-line growth of 9%. Non-branded revenue grew 26%, and profitability came back to par compared to the previous year.
Brand Performance and Initiatives
The company maintained its A&P-to-sales ratio in India at 7.4%. The salt market share value remained flat, while the tea market share saw a slight dip of 80 bps. New and emerging channels contributed 37% this quarter. The company launched 25 new SKUs in Q2. Tata Starbucks saw 8% revenue growth and is present in 80 cities, inching towards the 500 store mark.
Business Segment Highlights
- Packaged Beverages: 5% volume growth, 12% revenue growth.
- India Foods: 11% volume growth, 19% revenue growth.
- Tata Copper+: Grew 36%.
- Organic India: Delivered INR133 crores top line.
- Capital Foods: Delivered INR223 crores.
Macros and Outlook
Tea prices are expected to remain broadly in line with previous expectations of a 20% decrease from last year’s levels. Coffee prices have started to come down, but there was a slight increase due to Brazil tariffs. The company anticipates margin recovery and expects to operate within a 34% to 36% gross margin range for tea to maintain market share.
Source: BSE
