Tata Consumer Products Q1 results: Net profit rises 15%, revenue advances 10%, EBITDA margin contracts by 260 basis points

Tata Consumer Products, the country's leading FMCG company on Wednesday, July 23, reported a consolidated net profit of ₹334 crore in the first quarter of current financial (QFY26) marking a year-on-year (YoY) increase of 15% from ₹290 crore in the same period last year.

Its revenue from operations advanced 10% to ₹4,779 crore in April-June period as against ₹4,352 crore in the year-ago period.

Tata Consumer Products reported weak operational performance as its earnings before interest, taxes, depreciation, and amortisation (EBITDA) also known as operating profit declined 9% annually to ₹607 crore as against ₹667 crore in the corresponding period last year.

EBITDA declined due to higher tea costs in India and coffee price corrections in the non-branded business, the Tata Group company said.

Its EBITDA margin contracted by 260 basis points to 12.70% from 15.33%.

“We delivered a steady topline growth of 10% in Q1 FY26, with double-digit net profit growth. During the quarter, we recorded double-digit growth in the core India business across both tea and salt backed by volume growth. Tata Sampann continued its strong trajectory, with new launches & innovations performing well. However, unfavourable weather impacted volume growth in the RTD business. While transitory issues impacted growth in Capital Foods and Organic India, our focus now turns to delivering on our aspirations in these businesses through ramping up advertising, innovation and distribution expansion,” said Sunil D’Souza, Managing Director & CEO of Tata Consumer Products.

“We delivered yet another quarter of strong performance in the International Business; with margin being accretive to the India business margins. In India, we continued to strengthen omni channel capabilities including food services and pharmacy, with channels of the future (e-commerce and modern trade), demonstrating robust growth,” D’Souza added.

During the quarter, revenue for India packaged beverages business grew 12%. Coffee continued its strong trajectory with a revenue growth of 67% for the quarter. In line with our focus on Health & Wellness and Premiumization, Tetley introduced Slim Care and Beauty Care green teas enriched with L- Carnitine and Biotin respectively, the Mumbai-based company said in a press release.

The company’s Ready to Drink (RTD) business was impacted by unseasonal rains and recorded a moderate volume growth of 3%. Strong portfolio expansion continued with the launch of 8 new products across new segments, formats, and occasions, the company added.

Tata Consumer Products shares ended 1.92% lower at ₹1,064 ahead of its earnings announcement.