Tata Consumer Products' Q2 FY 2025-26 Quarterly Results

Result Summary

• Tata Consumer Products Ltd reported a 3.8% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Sep (Q2 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a growth of 17.5%.
• Its expenses for the quarter were up by 2.9% QoQ and 16.8% YoY.
• The net profit increased 22.5% QoQ and increased 10.7% YoY.
• The earnings per share (EPS) of Tata Consumer Products Ltd stood at 4.09 during Q2 FY 2025-26.

Financial Statments for Q2 FY 2025-26

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Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

Tata Consumer Products Ltd, a part of the Tata Group, is a leading consumer goods company in India. The company operates primarily in the beverages and food sectors, with a diverse product portfolio that includes tea, coffee, water, salt, pulses, spices, and packaged foods. Tata Consumer Products has notable brands such as Tata Tea, Tetley, Tata Salt, and Tata Sampann under its umbrella. The company is positioned within the fast-moving consumer goods (FMCG) industry, which is characterized by high volume sales and frequent consumer purchases. As of the latest available information up to October 2023, the company continues to expand its product offerings and market reach, but recent specific developments beyond this timeframe are not available.

Revenue

In Q2 FY26, Tata Consumer Products reported a total income of ₹5003.91 crores, reflecting a quarter-over-quarter (QoQ) increase of 3.8% from the ₹4820.08 crores reported in Q1 FY26. Year-over-year (YoY), the total income rose by 17.5% compared to the ₹4260.42 crores recorded in Q2 FY25. These figures indicate a consistent growth trajectory for the company's revenue, driven by its diverse product portfolio and market presence. The revenue growth could be attributed to the company's strategic initiatives in expanding its market share and enhancing its product lines, though specific drivers beyond the provided data are not indicated.

Profitability

Tata Consumer Products' profitability metrics display significant growth in Q2 FY26. The Profit Before Tax (PBT) was ₹523.28 crores, marking a 12.4% increase QoQ from ₹465.42 crores in Q1 FY26, and a 31.8% increase YoY from ₹397.07 crores in Q2 FY25. The Profit After Tax (PAT) also increased to ₹406.51 crores, up 22.5% from ₹331.75 crores in the previous quarter and 10.7% from ₹367.21 crores in the same quarter of the previous year. Notably, the tax expense showed a significant YoY increase of 234.6%, rising from ₹37.73 crores to ₹126.23 crores, which could impact net profitability if viewed in isolation. Earnings Per Share (EPS) also rose to ₹4.09, up from ₹3.37 in the preceding quarter and ₹3.78 a year earlier, demonstrating an improvement in shareholder value.

Operating Metrics

Tata Consumer Products' operating metrics highlight an upward trend in expenses and income. Total expenses for Q2 FY26 were ₹4480.63 crores, representing a 2.9% increase QoQ from ₹4354.66 crores in Q1 FY26, and a 16.8% increase YoY from ₹3836.18 crores in Q2 FY25. The increase in total expenses aligns with the growth in total income, suggesting a proportional scaling in operations. This balance between income and expenses has contributed to the company's improved profitability metrics. Notably, the operational efficiency and cost management strategies have likely played roles in maintaining the growth of profit margins despite the rising expenses, although the specifics of these strategies are not detailed in the financial data provided.