Market Performance
Tata Consumer Products (TCPL), part of the Tata Group, announced its financial results for the second quarter of FY26, and the numbers have painted a solid picture of resilience and growth. The company not only surpassed market expectations on revenue and profit but also demonstrated continued strength in its core domestic business.
For Q2FY26, TCPL’s net profit stood at ₹397 crore, comfortably higher than the estimated ₹373 crore. This marks a 10.6% year-on-year (YoY) growth, showing steady momentum despite a challenging consumption environment.
The revenue from operations reached ₹4,966 crore, up from ₹4,214 crore in the same period last year — reflecting an 18% YoY growth, driven largely by pricing gains and solid performance in key product categories.
Sequentially, revenue rose from ₹4,778 crore in Q1FY26, underscoring consistent topline growth across quarters.
Tata Consumer Products Q2 Results Story
At the operating level, EBITDA came in at ₹672.51 crore, beating internal benchmarks and recording an improvement over ₹626 crore in the same quarter last year.
When compared to ₹607 crore in Q1FY26, this shows a clear upward trend. The company’s ability to sustain operating efficiency across its product portfolio stands out as a key highlight this quarter.
However, operating margins moderated slightly to 13.4%, down from 14.85% in the year-ago period. Despite this dip, the margin performance still came in better than anticipated, supported by pricing discipline and a favorable product mix. Sequentially, margins expanded 70 basis points (bps) quarter-on-quarter (QoQ), showing improvement in cost management and operational leverage.
Breaking down the performance:
- India business EBITDA jumped 33% YoY, backed by margin expansion of 180 bps.
- Core categories such as Tea and Salt maintained strong double-digit growth for the second consecutive quarter.
- The company’s “Growth businesses” recorded an impressive 27% sequential acceleration, signaling renewed momentum across product lines.
Company Details and Segment Highlights
The company’s diversified portfolio continues to power its growth engine. Tata Sampann led the charge with a remarkable 40% growth, building further on its strong brand equity in the health and wellness space.
The Ready-to-Drink (RTD) segment also delivered robust numbers, posting 31% volume growth and 25% value growth, despite challenges like unfavorable weather conditions.
Meanwhile, some of the recently acquired or partnered brands — Capital Foods, Organic India, and Tata Soulfull — experienced a temporary impact due to the ongoing GST 2.0 transition. The company highlighted that these short-term disruptions are being actively managed to ensure smoother transitions in the upcoming quarters.
The management’s focus on innovation and brand expansion was evident, with 25 new product launches rolled out during the quarter, catering to growing consumer demand in Health, Convenience, and Premium segments.
In the café business, Tata Starbucks continued its strong expansion drive. The brand added new outlets across metros and smaller cities, taking the total store count to 492 across 80 cities. This footprint growth reinforces Tata Consumer’s commitment to building scale in high-potential lifestyle segments.
Summary
In summary, Tata Consumer Products Q2 Results reaffirm the company’s ability to deliver consistent growth across segments and navigate macro challenges with agility.
Key takeaways from Q2FY26:
- Net Profit: ₹397 crore, up 10.6% YoY
- Revenue: ₹4,966 crore, up 18% YoY
- EBITDA: ₹672.51 crore, higher QoQ and YoY
- Operating Margin: 13.4%, up 70 bps sequentially
- India Business EBITDA: Up 33% YoY with margin expansion of 180 bps
- Tata Sampann Growth: 40%
- RTD Segment Growth: 31% in volume, 25% in value
- Tata Starbucks: 492 stores across 80 cities
The quarter’s strong showing reflects Tata Consumer’s disciplined strategy, balanced portfolio, and steady execution across categories. Despite margin pressures, the company has managed to stay ahead through cost efficiencies and product innovation.
As India’s consumption story continues to evolve, Tata Consumer Products remains positioned to capture emerging opportunities across both traditional and modern trade formats — with health, convenience, and premiumization at the core of its growth narrative.
