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Tata Consumer Products on Wednesday announced its Quarter 1 earnings for the fiscal year 2026, clocking a 15% rise in consolidated profit year-on-year.
The consumer goods firm reported a profit of Rs 334 crore in Q1 FY26 compared to Rs 290.32 crore in the corresponding quarter in the last fiscal year. However, the profit plummeted by 3% compared to the previous quarter. Tata Consumer's profit stood at Rs 344.85 crore in the January-March quarter in FY25.
Revenue from operations witnessed a jump of 9.8 percent year-on-year. The salt-to-tea manufacturer recorded net sales of Rs 4,778.91 crore in Q1 FY26 compared to Rs 4,352.07 crore in Q1 FY25. India branded business reported a 6.8% unit volume growth, the company stated. For the quarter, the International business revenue grew 5% in constant currency terms, driven by strong coffee performance in the USA.
"We delivered a steady topline growth of 10% in Q1 FY26, with double-digit net profit growth. During the quarter, we recorded double-digit growth in the core India business across both tea and salt backed by volume growth. Tata Sampann continued its strong trajectory, with new launches & innovations performing well," Sunil D’Souza, Managing Director & CEO of Tata Consumer Products said.
The total expenses stood at Rs 4,354.66 crore in the same quarter--11% rise YoY.
Tata Sampann brand clocked 27% YoY growth in Q1, while salt revenue grew 13% with 5% volume growth. Value-added salts grew 31% during the quarter, it added.
Besides, the beverage segment, including Tata Tea, Tata Gluco, and Tata Copper brands, reported 8% revenue growth to Rs 1,647 crore in Q1 FY26.
The food business of the company clocked a revenue growth of 14% to Rs 1,534 crore in the first quarter.
Coffee also continued its strong trajectory, with revenue jumping to 67%, driven by 33% growth in volumes, the company said. Meanwhile, Tata Starbucks added 6 net new stores during the quarter, taking up the total number of stores to 485 across 80 cities.
The Q1 FY26 EBITDA stood at Rs 615 crore at negative 8% growth and positive 12.9% margin.
E-commerce and quick commerce led the company's omni-channel capabilities at 61% YoY, followed by Modern Trade, such as supermarkets, at 21% YoY.
"In India, we continued to strengthen omni channel capabilities including food services and pharmacy, with channels of the future (e-commerce and modern trade), demonstrating robust growth," D'Souza added.
The MD underscored that focus will continue in imroving the businesses in the upcoming quarters by ramping up advertising, innovation and distribution expansion.