Tata Consumer’s Q1 profit rises 15% YoY to ₹334 cr; India business leads growth

This compares to a net profit of ₹290.3 crore reported in Q1FY25.

Revenue from operations grew nearly 10% to ₹4,779 crore, up from ₹4,352 crore in the same quarter last year, although it missed the street’s forecast of ₹4,850 crore.

At the operating level, earnings before interest, tax, depreciation and amortisation (EBITDA) declined 9% to ₹608 crore from ₹668 crore a year ago, falling short of the expected ₹620 crore.

The EBITDA margin narrowed to 12.7% from 15.3% in the previous year, just below the projected 12.8%.

The company’s domestic business delivered strong performance, driven by solid growth in core categories such as tea and salt, along with underlying volume expansion.

The India Beverages segment saw 12% YoY growth, with coffee revenue soaring 67% and tea maintaining a steady pace.

The Foods division posted a 14% rise in revenue, with value-added salt growing 31% YoY and Tata Sampann recording a 27% jump.

Newer categories like dry fruits and cold-pressed oils also maintained positive momentum.

In the ready-to-drink segment, volumes were impacted by unseasonal rainfall.

However, Tata Consumer’s e-commerce sales surged 61% and modern trade grew by 21%, supporting the company’s innovation-led strategy.

International revenue rose 5% in constant currency, aided by strong coffee sales in the US.

Tata Starbucks added six new stores during the quarter, taking the total to 485 outlets across 80 cities, with Cold Brew drinks gaining further traction.