Tata Consumer profit rises 16% on strong sales growth

Research Analyst: UJVIN NEVATIA (PROPRIETOR: NEVAT INVESTMENTS) | SEBI Registration No.: INH100009628 Tata Consumer Products Limited (

) reported consolidated net profit of ₹469 crore in Q2 FY27, up 16% year-on-year. Revenue from operations increased 14% to ₹5,661 crore, supported by strong domestic volumes and growth businesses. What happened? EBITDA rose 18% to ₹794 crore, with the EBITDA margin expanding to approximately 14% from 13.5% a year earlier. The India branded business recorded 11% underlying volume growth. Its growth businesses expanded 40% and contributed 38% of the India business. Tata Sampann revenue grew 57%, while the ready-to-drink business grew 47%. Salt revenue increased 15%, although tea volumes remained flat amid subdued demand. Why does it matter? Revenue and EBITDA growth indicate improving operating performance, with volumes contributing to domestic growth. However, subdued tea demand and weaker international performance on a constant-currency basis remain areas to monitor. My view The quarter reflects broad-based growth beyond the company's traditional tea and salt businesses. The expansion of growth categories is encouraging, but sustaining profitability will depend on continued volume growth, product execution and managing input costs. What I am watching next I would track domestic volume growth, tea demand, growth-business contributions, international performance and EBITDA margins to assess whether the company can sustain its momentum. No Recommendations Source: Business Standard Disclosure: I, my entity, associates or relatives do not have any holding, position or other material interest in Tata Consumer Products Limited.