Tata Consumer Products Limited (TCPL) has reported a robust performance for the first quarter, with consolidated revenue growing by 10% year-on-year to Rs 4,779.00 crores. The company's strong showing was primarily driven by double-digit growth in its core India business, particularly in the tea and salt segments.

Key Highlights

• Consolidated revenue grew 10% (9% in constant currency) to Rs 4,779.00 crores
• India business recorded 11% growth
• International business delivered 5% constant currency growth
• Group Net Profit increased by 15% to Rs 332.00 crores

Strong Performance in Core Segments

TCPL's India packaged beverages business saw a significant 12% revenue growth during the quarter. The company's salt portfolio continued its strong momentum, with revenue growing by 13% and volume increasing by 5%. Notably, the value-added salts segment experienced an impressive 31% growth.

Sunil D'Souza, Managing Director & CEO of Tata Consumer Products, commented on the results: "We delivered a steady topline growth of 10% in Q1, 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."

Tea Margin Recovery Expected

Despite the strong revenue growth in the branded tea business, margins declined by 10 percentage points as only 70% of cost inflation was passed to consumers. However, CEO Sunil D'Souza indicated that the company expects its branded tea margins to recover by the December quarter due to lower auction prices and improved cost pass-through. He anticipates one more quarter of margin pressure before returning to historical margins of 34-37%. Tea auction prices are currently 13% lower year-on-year, and the company expects price increases in mid to high single digits this year compared to 30% last year.

Coffee and Tata Sampann: Standout Performers

The company's coffee business demonstrated exceptional performance, registering a remarkable 67% revenue growth for the quarter. Tata Sampann, TCPL's pulses and spices brand, continued its strong trajectory with a 27% year-on-year growth.

International Business and Non-Branded Segment

The international business maintained its momentum with a 5% constant currency revenue growth, driven by strong coffee performance in the USA. The non-branded business grew by 6% in constant currency terms, adapting quickly to moderating coffee prices by optimizing sourcing strategies and managing inventory.

Challenges and Outlook

Despite the overall positive performance, TCPL faced some challenges. The Ready-to-Drink (RTD) business was impacted by unfavorable weather, recording only a moderate volume growth of 3%. The company also noted that operating performance was affected by tea cost inflation in India and coffee price corrections in the non-branded segment.

Innovation and Channel Expansion

TCPL continued to focus on innovation and expanding its distribution channels. The company strengthened its omnichannel capabilities, including food services and pharmacy channels. E-commerce and modern trade channels showed strong growth, with e-commerce growing by 61% and modern trade recording 21% growth in the quarter.

Tata Starbucks Expansion

Tata Starbucks, a joint venture between TCPL and Starbucks Corporation, added 6 new stores during the quarter, bringing the total number to 485 across 80 cities in India.

D'Souza concluded, "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."

As Tata Consumer Products continues to navigate challenges and capitalize on growth opportunities, the company remains committed to strengthening its position in the FMCG sector through innovation, expansion, and strategic focus on its core segments.

Tata Consumer Products Ltd (TCPL), a leading player in the FMCG sector, is set to reveal its financial performance for the first quarter of fiscal year 2026. The company has scheduled a Board of Directors meeting on July 23, 2025, to approve the Q1FY26 financial results for the quarter ended June 2025.

Earnings Call and Trading Window

Following the board meeting, TCPL will host an earnings call at 6:30 p.m. on the same day, providing an opportunity for investors and analysts to gain insights into the company's performance and future outlook. In line with regulatory requirements, the trading window for designated persons has been closed since June 24 and will remain so until 48 hours after the results declaration.

Previous Quarter Performance

To provide context for the upcoming results, it's worth noting TCPL's strong performance in the previous quarter. In Q4FY25, the company reported:

• A substantial 52% increase in consolidated net profit to Rs 407.07 crore
• Total income growth of 17.64%, reaching Rs 4,664.73 crore

These figures set a high benchmark for the upcoming Q1FY26 results.

Recent Stock Performance

Tata Consumer Products' stock has shown mixed performance across different time frames:

As of Tuesday morning, the stock was trading 0.70% lower at Rs 1,082.70.

Additional Corporate Update

In a recent corporate filing, TCPL announced the opening of a special window for re-lodgement of transfer requests for physical shares. This information was published in newspaper advertisements in Business Standard (English, all India edition) and Sangbad Pratidin (Bengali, Kolkata edition). The company stated that further details are available on their official website.

Investors and stakeholders are eagerly awaiting the Q1FY26 results to gauge TCPL's performance in the current fiscal year. The upcoming earnings call will likely provide valuable insights into the company's strategies and outlook in the dynamic FMCG sector.