27-Oct-2026 08:13:50
TATA CONSUMER PRODUCTS Q2 CONCALL : REVENUE UP 14% YOY, GROWTH BUSINESSES UP 40% & MANAGEMENT EXPECTS 30%+ GROWTH IN NEW CATEGORIES OVER NEXT 2–3 YEARS
• MANAGEMENT EXPECTS GROWTH BUSINESSES TO DELIVER 30%+ ANNUAL GROWTH OVER THE NEXT 2–3 YEARS, SUPPORTED BY TATA SAMPANN, READY-TO-DRINK BEVERAGES & NEW PRODUCT CATEGORIES • MANAGEMENT TARGETS LONG-TERM INDIA FOOD & BEVERAGE EBITDA MARGINS OF 17–20%, WITH AN AMBITION TO APPROACH THE LOWER END OVER APPROXIMATELY THREE YEARS • MANAGEMENT EXPECTS TEA VOLUMES TO RECOVER TOWARD LOW- TO MID-SINGLE-DIGIT GROWTH, WHILE CORE TEA & SALT REVENUE GROWTH IS TARGETED AT MID- TO HIGH-SINGLE DIGITS • Q2 REVENUE UP 14% YOY, EBITDA UP 18%, NET PROFIT UP 16% TO ₹470 CR & EBITDA MARGIN IMPROVED 40 BPS TO 14% • GROWTH BUSINESSES REVENUE UP 40% YOY TO APPROXIMATELY ₹1,400 CR, CONTRIBUTING 38% OF INDIA BUSINESS REVENUE • TATA SAMPANN REVENUE SURGED 57% YOY, WITH DRY FRUITS & COLD-PRESSED OILS CROSSING ₹1,000 CR COMBINED ANNUALIZED REVENUE RUN RATE • TATA SAMPANN PROFITABILITY IMPROVED APPROXIMATELY 270–290 BPS YOY, WITH MARGINS REACHING AROUND 14–15% • READY-TO-DRINK BEVERAGES REVENUE UP 47% YOY & VOLUMES UP 34%, WHILE MANAGEMENT EXPECTS APPROXIMATELY 30% UNDERLYING GROWTH GOING FORWARD • SALT REVENUE UP 15% YOY & VOLUMES UP 9%, WITH MARKET SHARE APPROACHING 40%; RECENT PRICE INCREASES ARE EXPECTED TO SUPPORT H2 REALIZATIONS • INDIA TEA & COFFEE REVENUE DOWN APPROXIMATELY 1% YOY, WITH FLAT VOLUMES; MANAGEMENT HAS IMPLEMENTED CUMULATIVE TEA PRICE HIKES OF APPROXIMATELY 8–10% • CAPITAL FOODS REVENUE UP 18% YOY & ORGANIC INDIA UP 9%, WITH MANAGEMENT EXPECTING 25–30% GROWTH GOING FORWARD • INTERNATIONAL REVENUE UP 7% ON A REPORTED BASIS BUT DOWN 2% IN CONSTANT CURRENCY, WITH UK BUSINESS DOWN 8% AMID WEAK DEMAND & UNFAVORABLE WEATHER • STARBUCKS INDIA REVENUE UP 15% YOY, STORE TRAFFIC INCREASED APPROXIMATELY 10% & TOTAL STORE COUNT REACHED 505; MANAGEMENT EXPECTS FASTER STORE EXPANSION • MANAGEMENT EXPECTS RECENT PRICE INCREASES TO SUPPORT H2 MARGINS, WHILE AI-ENABLED SALES TOOLS, DISTRIBUTION EXPANSION & NEW PRODUCT LAUNCHES AIM TO IMPROVE PRODUCTIVITY • MANAGEMENT REMAINS CONFIDENT ABOUT GROWTH BUSINESSES, BUT FLAT TEA VOLUMES, COMMODITY INFLATION, INTERNATIONAL DEMAND WEAKNESS & SUSTAINABILITY OF INDIA MARGIN RECOVERY REMAIN KEY RISKS
TATA CONSUMER PRODUCT LTD