Tata Consumer Products Ltd. posted Q2 revenue of ₹5,661 crore, a 14% rise YoY, and EBITDA of ₹794 crore, up 18% from ₹654 crore. Net profit climbed ₹470 crore, a 16% gain over the ₹400 crore reported a year earlier. These figures beat the consensus of ₹5,605 crore in revenue, ₹775 crore in EBITDA and ₹456 crore in net profit — all within a single reporting window.
Underlying volume growth in the India‑branded business was 11%, while the company’s growth‑segment volumes surged 40%, driven by Tata Sampann’s 57% revenue jump and RTD’s 47% increase. Salt revenues rose 15% with a 9% volume uptick, whereas tea volumes stayed flat and tea revenue dipped marginally. International business revenue grew 7%, though it fell 2% on a constant‑currency basis.
Management reiterated its FY27 goal of expanding consolidated EBITDA margins by 50–70 basis points annually, with an expectation of further improvement in the second half. The company also confirmed guidance that growth businesses should see around 30% expansion, while tea and salt are targeted for mid‑ to high‑single‑digit growth. Pricing power across categories and scale efficiencies are expected to underpin margin gains in coming quarters.
Brokerages largely stayed bullish: CLSA kept an Outperform rating and a ₹1,372 price target, noting revenue beats and EBITDA in line with expectations. HSBC retained a Buy, highlighting the non‑India business lift and flat India margins, while Goldman Sachs described the quarter as strong despite a challenging environment. Morgan Stanley maintained Overweight, citing 14% revenue and 17% EBITDA growth, and Citi trimmed its target to ₹1,225 but kept a Buy stance.
Investors now eye the company’s upcoming guidance and the potential for margin acceleration in the second half of FY27. With growth businesses performing robustly and the management’s margin expansion plan on track, the market is poised to reassess valuation multiples in light of the latest performance data.