Tata Consumer Products Q2 Results: Profit Up 10.5%, Revenue Beats Estimates

Shares of Tata Consumer Products Ltd (TCPL) recovered from early losses to trade higher after the company reported better-than-expected second-quarter results on Monday, November 3. The FMCG giant’s Q2 performance showed strong growth in revenue and profit, even as margins narrowed slightly year-on-year.

Revenue and Profit Beat Street Estimates

Tata Consumer Products reported a net profit of ₹397 crore for Q2FY26, marking a 10.5% increase from ₹359 crore in the same quarter last year. This figure also beat CNBC-TV18’s estimate of ₹367 crore, indicating stronger operational performance than expected.

Revenue for the quarter came in at ₹4,966 crore, up 18% year-on-year compared to ₹4,214 crore in the base quarter. This too surpassed Street expectations of ₹4,782 crore, highlighting broad-based demand recovery across product categories.

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EBITDA and Margins Performance

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) stood at ₹672 crore, up 7.3% year-on-year, also exceeding the poll estimate of ₹630 crore.

However, the EBITDA margin narrowed by 140 basis points to 13.5%, compared to 14.9% a year earlier. Despite the decline, the margin still outperformed estimates of 13.2%, suggesting effective cost control amid inflationary pressures.

“EBITDA margin at 13.5% beat analyst estimates, showing operational resilience despite narrowing year-on-year,” analysts noted.

Strong Segment-Wise Growth

The Foods business led the growth momentum with a 19% year-on-year revenue increase, far exceeding the 12–14% expected range. Meanwhile, the Beverage segment grew 12% year-on-year, above the 6–8% growth projected by analysts.

Tata Consumer’s International Business also delivered 9% growth, again beating the 6–8% forecast.

The company’s core India business maintained double-digit growth for the second consecutive quarter, driven by strong performance in both tea and salt categories.

Tata Sampann stood out with an impressive 40% growth, while brands such as Capital Foods, Organic India, and Tata Soulfull were temporarily impacted by the GST 2.0 transition, as per the company’s investor presentation.

Stock Reaction

Following the results announcement, Tata Consumer’s shares rebounded from early losses to trade 0.6% higher at ₹1,172.2 apiece on the BSE.

The stock’s recovery reflects investor confidence in the company’s strong operational growth despite margin pressure, supported by resilient demand across both domestic and international markets.

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