Tata Consumer Products Reports 10% Jump in Q1 PAT, Driven by Strong Tea and Salt Sales

Tata Consumer Products Ltd (TCPL), the FMCG arm of the Tata Group and maker of household brands such as Tata Tea and Tata Salt, posted a strong Q1 FY26 performance, buoyed by solid growth in its India business and a one-time dividend boost.

The company reported a 10.2% year-on-year (YoY) rise in consolidated net profit at ₹346.44 crore for the quarter ended June 30, 2025. Consolidated revenue from operations increased by 9.8% YoY to ₹4,778.91 crore.

TCPL’s India business delivered double-digit growth, primarily led by the core tea and salt categories. However, the ready-to-drink segment faced volume pressure due to unseasonal rainfall. The international business grew 5% YoY in constant currency terms.

On a standalone basis, revenue rose 10% YoY to ₹3,529 crore, while net profit surged 285.9% to ₹713.9 crore, aided by a dividend income of ₹464 crore from overseas subsidiaries.

“Tea prices are currently 13–15% below last year, and we don’t expect a further drop. Coffee prices, however, remain volatile,” said Sunil D’Souza, MD & CEO of TCPL, during an investor call.

While TCPL remains a relatively smaller player in coffee, the company reported 33% volume growth and 67% value growth in the coffee business during the quarter.

The company’s joint venture with Starbucks Corporation, Tata Starbucks, added six new stores, taking the total count to 485 outlets across 80 cities in India. Tata Starbucks reported 6% revenue growth in Q1.

Despite the robust quarterly performance, TCPL shares closed 1.92% lower at ₹1,064 on the NSE on Wednesday.