Key Financial Figures

  • Consolidated Revenue: ₹5,349 crores, up 12% YoY
  • EBITDA: Growth of 19% YoY
  • EBITDA Margin: 13.6%, expanded 70 bps YoY
  • PBT: Up 27% YoY
  • Net Profit: ₹427 crores, up 29% YoY
  • EPS: ₹4.31 per share
  • Adjusted EPS: ₹4.67 per share (excluding brand amortization from acquisitions)
  • A&P Spend: 6.1% of revenue

Segment Performance

India Business:

  • Delivered 13% underlying volume growth (UVG)
  • India Beverages (Tea & Coffee): Revenue ₹1,200 crores, down 4% YoY
  • Tea volumes up 2% despite prolonged summer
  • Coffee grew 24%
  • Price reductions passed on as tea costs declined
  • India Salt: Revenue exceeded ₹1,000 crores, up 7% YoY
  • Volume growth of 7%
  • Price increase implemented in June (Tata Salt MRP moved from ₹30 to ₹32)
  • Value-added salts grew 13%
  • Growth Businesses: Revenue ₹1,300 crores, up 47% YoY
  • Now constitute 36% of India business
  • Tata Sampann: Grew 58% driven by volume across categories including pulses, spices, dry fruits, and cold-pressed oils
  • RTD: Revenue up 41% with 38% volume growth
  • Capital Foods: Revenue ₹232 crores, grew 40%
  • Organic India: Revenue ₹118 crores, grew 27%
  • Combined gross margin for Capital Foods and Organic India at nearly 50%

International Business:

  • Constant currency growth of 3%, reported growth of 16% to ₹1,245 crores
  • US Business: 7% constant currency growth, seventh consecutive quarter of market share growth
  • UK & Canada: Impacted by unusually warm summer, especially in black tea category
  • Non-Branded Business: Down 7% reported (10% constant currency) due to declining coffee prices
  • Solubles declined 12%, plantations declined 8%
  • Proactive hedging mitigated some impact

Starbucks:

  • Revenue grew 11% YoY
  • Mid-single digit same-store sales growth after adjusting for store closures in May 2025 due to Operation Sindoor
  • Relaunched Starbucks Rewards program
  • Closed some cafes short-term

Operational Highlights

  • Launched 14 new products during the quarter
  • Innovation focused on health & wellness, convenience, and premiumization
  • Two new Kombucha Zero variants launched in RTD portfolio
  • Strong execution focus with restructured go-to-market showing early results
  • Sustainability improvements: CRISIL rating moved from 61 to 67, ESG Risk from 62 to 68
  • Member of Dow Jones World Index since December 4, 2025

Management Commentary & Guidance

  • Maintained full-year margin expansion guidance of 50-70 bps
  • Growth businesses target 25-30% growth as "new normal"
  • Expect double-digit consolidated revenue growth
  • Salt business targeting mid-to-high single digit growth (5-7%)
  • Medium-term aspiration for India food business EBITDA margin of 17-20%

Commodity Price Impact

  • Tea costs showing 7-10% inflation early in procurement season
  • Calibrated price increases already taken in June, may consider further hikes
  • Coffee price normalization benefiting US branded business margins
  • Spices and dry fruits experiencing cost inflation, being passed through

Geographic Expansion

  • Water business (Tata Water Plus) showing strong growth but availability gaps exist
  • Currently strong in Andhra, Telangana, Odisha, Tamil Nadu, West Bengal, Bihar, and East UP
  • North and West regions identified as white space opportunities
  • Doubling down on capacity expansion for upcoming seasons

Q&A Highlights

  • Manufacturing strategy: Evaluating bringing certain categories in-house where scale and geography make financial sense
  • Tata Soulfull grew 45% in quarter, launched protein muesli
  • Market share: Salt business approaching 39% share, targeting to cross 40%
  • El Niño impact: Monitoring potential effects on tea production and pulse crops
  • Capital Foods expansion: Focusing on noodles category with cup noodles and Korean noodle launches
  • Organic India expansion: Moving into supplement categories and organic pulses