Fast moving consumer goods (FMCG) major Tata Consumer Products’ net profit rose 16 per cent to ₹469 crore in the second quarter of the current financial year (Q2FY27).
Net sales grew 14 per cent year-on-year (Y-o-Y) to ₹5,661 crore on the back of strong volume growth in its India business.
In India, branded business saw 11 per cent volume growth which was led by strong salt volumes and its growth businesses grew 40 per cent and scaled to 38 per cent of the India business, the company said in its release.
Salt revenue rose 15 per cent. However, tea volumes were flat due to subdued category demand. Tea revenue declined marginally as the volume-value gap narrowed following pricing actions, the company said.
Tata Sampann recorded 57 per cent revenue growth during the quarter, backed by strong volume growth and the ready-to-drink business delivered 47 per cent revenue growth. “Growth was broad based across the portfolio, underpinned by distribution expansion, premiumisation and a strong innovation pipeline,” the release said.
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Sunil D’Souza, managing director and chief executive officer at Tata Consumer Products, said, “We delivered our second consecutive quarter of double-digit revenue growth in FY27, backed by strong underlying volume growth in India business. This volume-led performance, together with disciplined execution, drove 18 per cent Ebitda (earnings before interest, tax, depreciation and amortisation) growth.”
He added that the company’s portfolio transformation continues to gain momentum.
“Our innovation momentum continues with 22 new launches in Q2 spanning key consumer trends across categories, in line with our consumer-first mindset. Tata Starbucks delivered strong revenue growth, a multi-quarter high, and recorded its fifth consecutive quarter of positive same-store sales growth,” he added.
The company is also advancing its digital transformation agenda with artificial intelligence (AI)-led initiatives across sales and operations, to enhance productivity.
“Going forward, we will remain focused on strengthening and scaling our core and growth businesses profitably, along with building future ready capabilities to deliver sustainable growth,” D’Souza said.