Tata Consumer Products Ltd (TCPL) kicked off FY27 on a strong note, reporting a 29% year-on-year increase in consolidated net profit for the June quarter, driven by robust growth in its high-margin businesses, continued premiumisation and a steady pipeline of product innovations.
The Tata Group FMCG major posted a consolidated net profit of ₹427 crore for the first quarter ended June 2026, compared with ₹334 crore a year earlier. Revenue from operations rose 12% to ₹5,349 crore, while consolidated EBITDA increased 19% to ₹730 crore.
Growth engines fire
The company’s strategy of expanding beyond its traditional tea and salt businesses continued to pay off, with its “growth businesses” recording an impressive 47% revenue growth during the quarter.
Among the standout performers was Tata Sampann, whose revenue surged 58%, supported by strong demand across pulses, spices, dry fruits and cold-pressed oils. The company also expanded its presence in the whole spices category to strengthen its packaged foods portfolio.
The Ready-to-Drink (RTD) beverages business posted 41% growth, aided by premiumisation and new product launches, including additional zero-sugar variants under the Tetley Kombucha Zero brand.
Acquired brands Capital Foods and Organic India also maintained strong momentum, delivering 40% and 27% revenue growth, respectively, reflecting rising consumer preference for convenience and health-focused products.
Core portfolio remains resilient
The company’s core India business continued to post healthy volume growth despite pricing pressures in tea.
Salt revenue increased 7%, backed by steady volumes, while domestic tea volumes grew 2%. However, tea revenue declined as the company passed on the benefits of lower tea prices to consumers.
Coffee remained one of the fastest-growing categories, recording 24% revenue growth during the quarter.
Innovation continued to underpin growth, with 14 new products launched during the quarter across multiple categories.
International and Starbucks
The international business reported 16% revenue growth (3% in constant currency), led by strong performance in the United States. In the UK, specialty tea brands Teapigs and Good Earth continued to gain market share.
Meanwhile, Tata Starbucks maintained its expansion trajectory, reporting 11% revenue growth supported by strong same-store sales.
The coffee chain ended the quarter with 498 stores across India after opening four new outlets, including two Starbucks Reserve stores in Kolkata and New Delhi.
Outlook
Tata Consumer Products Managing Director & CEO Sunil D’Souza said the company delivered another quarter of double-digit revenue growth backed by healthy volume expansion.
He said the India branded business continued to benefit from strong execution, category expansion and innovation, while growth businesses were steadily increasing their contribution to the overall portfolio.
With consumers increasingly gravitating towards premium foods, health and wellness products and convenience-driven offerings, analysts believe Tata Consumer is well positioned to accelerate growth beyond its traditional beverages business, supported by acquisitions, innovation and premiumisation.