Tata Consumer Products saw its consolidated net profit rise by 16% year-on-year to ₹469 crore in the July to September quarter of the financial year 2026-27. This growth was supported by strong volume increases and price hikes, which analysts believe will continue to support the company's performance in the second half of the year.
- Consolidated net profit increased 16% to ₹469 crore in Q2 FY27.
- Revenue from core operations rose 14% to ₹5,661 crore.
- EBITDA improved 16.5% to ₹783 crore, with margins expanding.
- Domestic business revenue grew 17.4%, international business up 6.4%.
- Growth businesses now make up 38% of the India business.
What were the key financial results for Tata Consumer Products in Q2 FY27?
In the second quarter of FY27, Tata Consumer Products posted a consolidated net profit of ₹469 crore, marking a 16% increase from ₹404 crore in the same quarter last year. Revenue from core operations rose by 14% to ₹5,661 crore compared to ₹4,966 crore in the previous year. The company’s earnings before interest, tax, depreciation, and amortisation (EBITDA) also improved by 16.5%, reaching ₹783 crore from ₹672 crore a year earlier.
How did margins perform during this period?
Despite some pressure on margins, Tata Consumer Products managed to expand its EBITDA margin by 31 basis points to 13.83% in Q2 FY27, up from 13.52% in the previous year. Net profit margins increased slightly to 8.3% from 8.19%, and operating profit margins rose by 62 basis points to 11.13% compared to 10.51% a year ago. This margin expansion reflects disciplined execution and effective cost management.
Which business segments contributed most to growth?
The domestic business segment showed strong growth, with revenues increasing by 17.4%. The international business also grew, though more modestly, by 6.4%. The company’s portfolio transformation is progressing well, with growth businesses expanding by 40% and now accounting for 38% of the India business. This diversification is expected to support future profitability.
What is the outlook for the second half of the financial year?
According to Sunil D’Souza, Managing Director and CEO of Tata Consumer Products, the company delivered its second consecutive quarter of double-digit revenue growth, driven by strong volume growth in India. Analysts, including those from Citi, expect EBITDA margins to expand by 50 basis points in the second half of FY27, supported by stronger profitability in international and non-branded businesses.
How did the stock market respond to these results?
Following the announcement of the Q2 results, Tata Consumer Products shares rose by 5.29% to ₹986 per share on the National Stock Exchange. The company’s market capitalization reached ₹97,579.28 crore, reflecting investor confidence in its growth prospects.
Overall, Tata Consumer Products’ strong financial performance in Q2 FY27, supported by volume growth and price hikes, positions the company well for continued growth and margin improvement in the coming months.
