India branded business, ready-to-drink beverages and international operations drive double-digit growth, offsetting weakness in the non-branded coffee business
Tata Consumer Products reported a 27.8 per cent year-on-year increase in consolidated net profit for the first quarter of FY27, as strong growth across its India branded portfolio and international business helped offset pressure from declining global coffee prices. The company also posted double-digit revenue growth. Consolidated net profit rose to Rs 427 crore in the quarter ended 30 June 2026, compared with Rs 334 crore in the corresponding quarter last year. Revenue from operations increased 11.9 per cent year-on-year to Rs 5,348.8 crore, up from Rs 4,778.9 crore a year earlier.
The company’s operating performance also strengthened during the quarter. Earnings before interest, taxes, depreciation and amortisation (Ebitda) rose 19.9 per cent to Rs 724 crore from Rs 604 crore in the year-ago period, while Ebitda margin improved to 13.5 per cent from 12.7 per cent. On a standalone basis, net profit remained broadly unchanged at Rs 714.3 crore, while revenue increased 14 per cent year-on-year to Rs 4,028.3 crore.
“We delivered yet another quarter of double-digit topline growth, backed by volume growth. Importantly, this translated to a consolidated net profit growth of 29 per cent. The India branded business delivered robust underlying volume growth reflecting continued focus on execution, category expansion and innovation. Our ‘Growth’ businesses performed very well and have scaled their overall contribution to the India business,” said Tata Consumer Products Managing Director and Chief Executive Officer Sunil D’Souza.
India Business Powers Growth
The India business remained the company’s primary growth engine during the quarter, with revenue rising 13 per cent year-on-year to Rs 3,540 crore. Segment profit increased 36 per cent to Rs 394 crore, reflecting continued demand across key consumer categories.
Tea volumes in India grew 2 per cent during the quarter. However, revenue from the segment remained subdued as the company passed on the benefit of lower tea input costs to consumers.The salt business recorded revenue growth of 7 per cent, supported by steady volume expansion, while the coffee business delivered 24 per cent revenue growth.
The ready-to-drink beverages portfolio, comprising brands such as Tata Coffee Grand Cold Coffee, Tata Gluco+ and Tata Copper+ Water, continued its strong momentum. Volumes increased 35 per cent during the quarter, while revenue rose 41 per cent year-on-year.
Recently acquired businesses also contributed to growth. Capital Foods generated revenue of Rs 232 crore, while Organic India reported Rs 118 crore in revenue. Together, the two businesses delivered a combined gross margin of 49 per cent.
Coffee Prices Weigh On Non-branded Business
Despite the strong performance across branded categories, the company’s non-branded business declined 7 per cent during the quarter, or 10 per cent in constant currency terms. Tata Consumer attributed the decline to a sharp fall in global coffee prices, which affected realisations.
The international business, however, offset part of this weakness by recording 16 per cent revenue growth in the June quarter, led by strong performance in the United States. Meanwhile, Tata Starbucks reported an 11 per cent year-on-year increase in revenue and expanded its network to 498 stores by the end of the quarter.
