Tata Consumer Products posts strong Q2 growth, margin recovery

Tata Consumer Products Limited reported an 18% consolidated revenue growth for Q2 FY '26, reaching close to INR5,000 crores, with H1 revenue nearing INR10,000 crores, a 14% increase. The India branded business saw a significant 14% underlying volume growth (UVG). EBITDA grew 7% year-on-year, with margins improving sequentially by 80 basis points to 13.6%. The company maintained its A&P-to-sales in India at 7.4% and launched 25 new SKUs in the quarter.

Key growth drivers included a 27% increase in growth businesses, with Sampann up 40% and Ready-to-Drink (RTD) volumes growing 31% (25% value). International business revenue rose 9%, while the non-branded segment saw a 26% revenue growth. Tata Copper+ recorded a 36% growth. Gross margins for tea are expected to stabilize between 34% and 36%, despite coffee price volatility impacting international margins. The company aims for India EBITDA margins to return to the 15% ballpark by Q4.