Tata Consumer Q3 Results: Revenue Crosses ₹5,000 Cr, Profit Jumps 36%

Introduction

Tata Consumer Products Ltd (TCPL) announced a robust financial performance for the third quarter of fiscal year 2026, ending December 2025. The company surpassed a significant milestone, crossing ₹5,000 crore in quarterly revenue for the first time. This achievement was driven by broad-based volume growth, strong performance in its core India business, and continued expansion of its high-growth portfolios. The results underscore the company's effective strategic execution and its ability to navigate a dynamic market environment, positioning it for sustained double-digit growth.

Landmark Financial Performance in Q3

In the October-December quarter, TCPL reported a consolidated revenue from operations of ₹5,112 crore, marking a 15% year-over-year increase. This top-line growth was accompanied by enhanced profitability. Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) grew by 26% to ₹728 crore. The company's EBITDA margin expanded by 120 basis points to 14.2%, reflecting improved operational efficiencies and the initial benefits of price adjustments in international markets. Group net profit saw a substantial 36% rise, reaching ₹385 crore for the quarter.

Segment-Wise Growth Drivers

The strong quarterly performance was fueled by consistent growth across all business segments, with the India business being the primary contributor. The domestic branded business registered an impressive 15% underlying volume growth, signaling healthy consumer demand.

• Tea Business: The core tea segment delivered a 3% volume growth. The company passed on the benefits of lower input costs to consumers, which supported volumes.
• Salt Business: The salt portfolio continued its strong momentum, achieving a 14% revenue growth, driven by a solid 15% increase in volume.
• Growth Businesses: The newer, high-growth segments demonstrated significant acceleration. The Tata Sampann portfolio grew by a remarkable 45%, while the Ready-to-Drink (RTD) business under NourishCo expanded by 26%. Collectively, these growth businesses surpassed the ₹1,000 crore revenue mark for the quarter.
• Acquisitions: The recently acquired Capital Foods and Organic India collectively grew by 15%, contributing ₹354 crore to the quarterly revenue and integrating well into TCPL's broader portfolio.
• International Business: The international operations maintained a steady trajectory with an 11% constant currency revenue growth, led primarily by the US coffee business. However, margins in this segment faced some pressure due to tariffs and commodity price volatility.

Strategic Initiatives and Management Outlook

CEO Sunil D'Souza expressed confidence in the company's strategic direction. Management is focused on achieving double-digit topline growth and steady EBITDA margin expansion. The company is on track to exit the fiscal year with an EBITDA margin close to 15% and is targeting a medium-term margin of around 17% within the next two to three years.

To achieve these goals, TCPL is implementing several key initiatives. A significant focus is on restructuring its go-to-market strategy. The company has piloted new distribution models in several cities, creating separate distributors for its growth portfolio to ensure focused execution. Early results from these pilots have been promising, showing a 20-25% increase in topline and up to a 60% uplift in SKU presence in some areas.

Innovation remains a cornerstone of TCPL's strategy, contributing 4.8% to revenue, close to its 5% target. The company launched 15 new products during the quarter, focusing on health, wellness, and convenience. These launches included new variants of Tetley tea, Tata Coffee Gold, and extensions in the RTD segment.

Navigating Market Challenges

While the overall performance was strong, the company acknowledged challenges in its international business. Margins in the US coffee segment were impacted by tariffs, leading retailers to reduce stock. However, TCPL has implemented price increases, and management is confident that the benefits will start reflecting in earnings, helping to lift consolidated margins in the coming quarters.

Conclusion and Forward Look

Tata Consumer Products' Q3 FY26 results highlight a period of disciplined execution and strategic clarity. The company's ability to deliver strong, volume-led growth while expanding margins is a testament to its robust business model. The successful integration of new acquisitions and the focused execution of its distribution and innovation strategies provide a solid foundation for future growth. As TCPL continues to strengthen its core brands and expand into high-growth categories, it is well-positioned to create long-term value for its stakeholders.