Team siliconindia

• TCPL reported a 15% YoY rise in Q1 net profit to Rs 331.75 crore.
• Core India business grew 11%, led by strong tea and salt sales.
• E-commerce sales jumped 61%, with quick commerce driving two-thirds of it.

Tata Consumer Products Ltd (TCPL) reported a 14.7% rise in consolidated net profit to Rs 331.75 crore for the quarter ended June 2025, up from Rs 289.25 crore in the same period last year. The company’s strong performance was largely driven by its India business, particularly in the tea and salt categories, according to a regulatory filing.

TCPL’s revenue from operations for Q1 FY26 stood at Rs 4,778.91 crore, marking a 9.8% year-on-year growth from Rs 4,352.07 crore. The company’s branded business recorded a 10.6% growth to Rs 4,270.9 crore, with the India branded segment contributing Rs 3,125.7 crore an 11% increase over last year.

“The growth was led by India business, which was up 11%. Core businesses of tea and salt had a very good quarter, supported by underlying volume gains”, said Ashish Goenka, Group CFO at TCPL.

The company’s India foods business saw a 14% growth year-on-year, and its water business posted a 13% rise in volumes. However, the ready-to-drink (RTD) segment experienced muted performance due to unseasonal rainfall and intensified competition. “RTD got impacted by unseasonal rain... though we still had a volume growth of 3%”, Goenka noted.

Newly acquired businesses, including Capital Foods and Organic India, faced operational and transitional hurdles, leading to capacity constraints. “It had a decent quarter, but we could have done more”, Goenka said.

In terms of retail strategy, TCPL saw strong momentum from modern trade and e-Commerce. e-Commerce sales, including quick commerce, surged by 61%, while modern trade grew by 21%. “Within e-commerce, quick commerce now has two-thirds share”, Goenka highlighted, adding that the company will continue to leverage this high-growth channel.

Internationally, TCPL’s branded business recorded a 9.44% rise to Rs 1,145.20 crore. The overall underlying growth was 5%, with the U.S. business returning to growth. Non-branded operations, comprising plantation and extraction in tea and coffee, grew by 7.02% to Rs 535.76 crore.

Total expenses for the quarter rose 10.9% to Rs 4,354.66 crore, while total income, including other income, increased 9.76% to Rs 4,820.08 crore.

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Tata Starbucks, the 50:50 joint venture with Starbucks Corporation, continued its expansion, adding six new outlets in the quarter and taking the total store count to 485 across 80 cities in India.

Commenting on the company’s overall performance, Sunil D’Souza, MD and CEO, said, “We delivered a steady topline growth of 10% in Q1 FY26, with double-digit net profit growth. Tea, salt, and Tata Sampann performed well, supported by innovations. However, unfavourable weather impacted the RTD segment”.

Despite the strong results, shares of TCPL closed 1.99% lower at Rs 1,062.65 on the BSE on Wednesday.