TATA CONSUMER PRODUCTS LIMITED Earnings Summary — Q1 FY2027
Tata Consumer Products Reports 29% Growth in Consolidated Net Profit Amid Strong Brand Performance
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 1.6% sequentially in Q1 FY2027.
- Revenue of ₹5,349 Cr is 11.9% higher year-on-year.
- Revenue has compounded at 14.7% annualised over the last 10 quarters.
- Net profit has reached its highest level in 10 quarters.
- Net profit of ₹427 Cr is 27.8% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 35.2% annualised across the period.
- Operating margin stands at 13.5% in Q1 FY2027.
- Operating margin expanded by 84 bps year-on-year.
- Over the last two years operating margin has contracted by 179 bps.
- PBT margin is 11.1%.
- Expense growth of 10.9% remained below revenue growth of 11.9%.
- Operating profit of ₹724 Cr is 19.3% higher year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 71/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 5,349 | 5,434 | 5,112 | 4,966 | 4,779 | 4,608 | 4,444 | 4,214 | 4,352 | 3,927 |
| Expenses | Improving | 4,625 | 4,641 | 4,391 | 4,294 | 4,172 | 3,987 | 3,879 | 3,588 | 3,685 | 3,297 |
| Operating Profit | Stable | 724 | 792 | 721 | 672 | 607 | 621 | 565 | 626 | 667 | 630 |
| Operating Margin | Stable | 13.5% | 14.6% | 14.1% | 13.5% | 12.7% | 13.5% | 12.7% | 14.9% | 15.3% | 16.0% |
| Other Income | Accelerating | 72 | 55 | 10 | 38 | 41 | 102 | 45 | 19 | 22 | -177 |
| Interest | Improving | 39 | 38 | 32 | 33 | 34 | 40 | 58 | 99 | 94 | 43 |
| Depreciation | Improving | 165 | 165 | 159 | 153 | 149 | 153 | 150 | 149 | 148 | 116 |
| Profit Before Tax | Improving | 592 | 644 | 540 | 523 | 465 | 530 | 402 | 397 | 448 | 294 |
| Tax | Volatile | 147 | 153 | 137 | 126 | 119 | 123 | 102 | 38 | 134 | 26 |
| Net Profit | Improving | 427 | 419 | 385 | 404 | 334 | 345 | 279 | 364 | 290 | 217 |
| Net Margin | Improving | 8.0% | 7.7% | 7.5% | 8.1% | 7.0% | 7.5% | 6.3% | 8.7% | 6.7% | 5.5% |
Key Takeaways
- Consolidated revenue grew by 12% YoY (9% in constant currency), primarily fueled by a 13% expansion in the India Business.
- Group Consolidated Net Profit reached ₹427 Crores, marking a significant 29% increase over the same quarter last year.
- India Business performance improved due to tapering tea costs, though non-branded segments and US coffee businesses faced cost inflation.
- Non-Branded Business witnessed a 10% revenue decline, while International Brand business grew by 5%.
- Operating margins improved YoY to 10.56% as price management and mix offset inflationary pressures on key input costs.
- Strategic focus remains on digital transformation and expanding direct reach to 4 million outlets in India.
- Share of loss from Associates/Joint Ventures (primarily plantations) narrowed compared to the sequential quarter but remains a seasonal drag of ₹17.67 Cr.
Management Guidance
Management is focused on moving from volume-led to value-led growth via premiumization and scaling the 'One Tata Consumer' architecture across global and domestic units.
Sentiment Shift
Improving
Robust YoY profit growth and operating margin expansion despite inflationary tea/coffee pressures suggest strong pricing power and successful integration of acquisitions.
Outlook
The company maintains a high-quality growth trajectory with aggressive expansion into high-margin staples and ongoing optimization of its global tea and coffee footprint.
From the Annual Report (Key Quotes)
“Operating performance of branded business improved mainly on account of tapering of tea cost partly offset by coffee cost inflation.”
“Revenue grew by 12%... driven by growth of 13% in India Business and 5% in International Business.”
“Profit before exceptional items and tax at Rs 592 Crores is higher by 27%.”
Official Quarterly Documents
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This summary is AI-generated from TATA CONSUMER PRODUCTS LIMITED's latest quarterly filing and earnings call. For informational purposes only — not investment advice.