Tata Consumer Products delivered impressive Q1 FY27 results, with consolidated net profit attributable to owners rising 29% year-on-year to ₹427 crore, largely beating the CNBC-TV18 estimate of ₹410 crore. The company's revenue from operations grew 12% Y-o-Y to ₹5,349 crore, marginally above the CNBC-TV18 estimate of ₹5,340 crore. According to CNBC-TV18, the net profit margin improved to 7.99% in Q1 FY27, from 6.94% in Q1 of FY26, while operating margin improved to 10.56% from 9.76% during the first quarter. Managing Director & CEO Sunil D'Souza highlighted that the company delivered double-digit topline growth backed by volume growth, with the India branded business delivering robust underlying volume growth. The improvement in operating performance was primarily driven by lower tea costs in India, which helped offset the impact of elevated coffee prices in the US, though the company continued to face inflationary pressure on several key input costs and higher investments behind its brands.
As reported by Zee Business, analysts had expected Tata Consumer Products to report a consolidated net profit of ₹416 crore for Q1 FY27, representing a 24.6% year-on-year increase. The company's revenue was projected at ₹5,335 crore, marking an 11.6% rise over the year-ago period. Motilal Oswal Financial Services had expected revenue to grow around 12% Y-o-Y to ₹5,331.8 crore, while Systematix Research anticipated revenue surging by 11.2% Y-o-Y to ₹53,159 million. The actual results exceeded these projections, with revenue coming in marginally above estimates and net profit significantly beating expectations. According to CNBC-TV18, Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 19.9% to ₹724 crore, broadly in line with the Street's expectation of ₹725 crore, with EBITDA margin expanding to 13.5% from 12.7% a year ago, broadly matching the CNBC-TV18 poll estimate of 13.6%. The consolidated net profit stood at ₹427.19 crore in Q1 FY27, up 29% YoY, as reported by Business Standard.
According to CNBC-TV18, the India branded business delivered 13% volume growth, comfortably ahead of the CNBC-TV18 poll estimate of 8-9%. Volume growth is a closely watched metric in the FMCG sector because it reflects higher consumer demand rather than just price hikes. The India business revenue grew 13.3% to ₹3,540.30 crore, with profit surging 35.7% to ₹393.96 crore. India tea volumes grew 2% during the quarter, though revenue was lower as the benefit of lower tea cost was passed on to consumers. The salt business registered 7% revenue growth, supported by steady volume expansion, with value-added salts delivering 13% volume growth in the quarter. Calibrated price increases were actioned to offset input cost inflation in salt. The coffee business maintained strong momentum, recording 24% revenue growth during the quarter. The Tata Sampann portfolio posted 58% revenue growth, driven by robust performance across multiple categories-dry fruits, cold-pressed oils as well as core pulses and spices. The ready-to-drink business reported 41% volume growth with revenues rising 41%, supported by premiumisation and innovation, with the company expanding its zero-sugar beverage portfolio with the launch of Cranberry and Pineapple variants under Tetley Kombucha Zero. Capital Foods reported 40% revenue growth and Organic India delivered 27% growth. However, the non-branded business declined 7.1% to ₹497.64 crore as a sharp fall in global coffee prices impacted realizations.
According to Mint, growth businesses grew 47% in Q1 and scaled to 36% of the India business, demonstrating the company's successful strategy in high-potential segments. Tata Consumer's growth businesses include emerging, high-potential segments like Tata Sampann (staples and dry fruits), Tata Soulfull (millets and healthy snacking), and ready-to-drink beverages like Tata Gluco+ and Tata Copper+. The UK business declined 2% in constant currency basis, impacted by an intense summer which drove a slowdown in the everyday black tea category. The international business grew 16% (3% in constant currency terms), with the US business delivering 7% constant currency growth in the quarter. The group's share of losses from associates and joint ventures widened to ₹17.67 crore from ₹14.69 crore. The consolidated net profit stood at ₹427 crore in Q1 FY27, up 29% YoY, as reported by Business Standard. The debt-to-equity ratio increased to 0.14 from 0.12, while the net worth stood at ₹22,611.24 crore as of June 30, compared with ₹23,188.86 crore at the end of March.
According to CNBC-TV18, Tata Consumer launched 14 new products during the quarter and remains focused on strengthening its core portfolio, scaling its growth businesses and delivering sustainable profitable growth. The steady pace of product launches also reflects the company's strategy of driving growth through innovation while deepening its presence in high-growth food and beverage categories. Managing Director and CEO Sunil D'Souza explained that Tata Sampann continued to record exceptional growth driven by performance across multiple categories-dry fruits, cold-pressed oils as well as core pulses and spices. The Ready-To-Drink business delivered a strong quarter with strong performance across core brands as well as new launches. The company's Tata Starbucks reported 11% revenue growth during the quarter, supported by strong same-store sales growth. The chain ended the quarter with 498 stores across India after opening four new outlets, including two Reserve stores in Kolkata and New Delhi. Looking ahead, D'Souza stated that "We remain focused on delivering sustainable profitable growth by strengthening and scaling our core and growth businesses and building a future ready portfolio." The counter fell 1.42% to end at ₹1,092 apiece on the National Stock Exchange following the results announcement.
