Tata Consumer Products Limited – Investor Presentation Summary

Key Operational Highlights

  • Consolidated revenue grew 14% YoY with India business achieving 11% Underlying Volume Growth (UVG)
  • Salt segment delivered 9% volume growth and 15% revenue growth
  • India Tea volumes were flat YoY with revenue marginally lower
  • 'Growth businesses' grew 40% YoY: Tata Sampann +57%, RTD +47%, Capital Foods and Organic India +15% combined (+24% domestic growth)
  • International business grew 7% (-2% constant currency)
  • Non-branded business grew 12% (9% constant currency)
  • Tata Starbucks revenue grew 15% with strong same-store sales growth (5th consecutive quarter)
  • Expanded Tata Starbucks footprint to 505 stores across 81 cities with entry into Shillong

Key drivers of operational performance: Strong volume growth in core segments, premiumization initiatives, geographic expansion, and successful execution across growth businesses

Segment-wise Performance

  • India Business: Revenue ₹3,666 Cr (Q2 FY27) vs ₹3,122 Cr (Q2 FY26), +17% growth; Segment Results ₹409 Cr vs ₹359 Cr, +14% growth; Margin 11.1% vs 11.5%
  • International Business: Revenue ₹1,370 Cr vs ₹1,288 Cr, +6% growth; Segment Results ₹182 Cr vs ₹148 Cr, +23% growth; Margin 13.3% vs 11.5%
  • Total Branded Business: Revenue ₹5,036 Cr vs ₹4,410 Cr, +14% growth; Segment Results ₹591 Cr vs ₹507 Cr, +17% growth; Margin 11.7% vs 11.5%
  • Non-branded Business: Revenue ₹659 Cr vs ₹590 Cr, +12% growth; Segment Results ₹98 Cr vs ₹76 Cr, +28% growth; Margin 14.8% vs 12.9%

Explanation of significant changes in segment performance: India business growth driven by strong volume performance and growth business acceleration; International business benefited from currency translation; Non-branded business growth led by strong volume growth in Solubles business (21% volume growth)

Financial Highlights

Revenue: ₹5,661 Cr (Q2 FY27)

EBITDA: Not explicitly stated in presentation

PAT: ₹625 Cr (Segment Results)

EPS: Not specified

Margins: Consolidated margin 11.0% vs 10.5% YoY (40 bps expansion)

YoY/QoQ comparison: Q2 FY27 revenue ₹5,661 Cr vs Q2 FY26 ₹4,966 Cr (+14%)

Drivers of financial performance: Revenue growth across segments, margin expansion in international and non-branded businesses, operational efficiencies

Comparison to market estimates: Not available

Key Risks: Raw material price fluctuations (Arabica and Robusta prices softening), currency rate fluctuations, competitive intensity

Geographical Revenue Split

Domestic vs Export/Regional Revenue: Not explicitly broken out

Regional Breakdown: International business performance mentioned but no specific geographic breakdown provided

Balance Sheet Snapshot

Net Debt/Equity: Not specified

Reserves: Not specified

Current Assets/Liabilities: Not specified

Working Capital/Leverage Metrics: Not provided

Financial Health Insights: Strong revenue growth and margin expansion indicating healthy operational performance

Capex & Cash Flow Health

Capital Expenditure: Not specified

Free Cash Flow: Not specified

Operating Cash Flow: Not specified

Net Debt Movement: Not disclosed

Investment Rationale: Focus on store expansion (Tata Starbucks), product innovation, and market expansion

Strategic & R&D Initiatives

Investments in Innovation: 22 new product launches in Q2 including Tata Tea Gold Reserve, Chakra Gold Select, Kanan Devan Gold

AI-led Transformation underway

Enhanced Starbucks Rewards program with simplified tiers and improved benefits

Expected impact on growth: Growth businesses now represent 38% of India business

Strategic Rationale: Strengthen core brands, accelerate growth businesses, drive premiumization, and expand geographic footprint

Industry Trends & Business Environment

Macro/Industry Trends: Category demand for tea remained subdued; Arabica and Robusta coffee prices continued to soften

Impact on Company: Softening commodity prices impacted realizations for plantations business (-11% revenue); subdued tea category demand affected India Tea volumes

Management Commentary & Growth Outlook

Strategic Outlook: Focus on strengthening core brands and accelerating growth businesses

FY Guidance: Not explicitly provided

Market Share Targets: Not specified

Risks and Opportunities: Management highlighted risks including fluctuations in input costs, currency rate fluctuations, competitive intensity, and changing consumer preferences