Tata Consumer Products Ltd (TATACONSUM) Q2 FY27 Results Analysis: Profit Grows 16%, EBITDA Margin Expands 31 bps
Tata Consumer Products Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 5,661.13 Cr (+14.00% YoY) and PAT growth of +15.65% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | October 26, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Revenue (Q2) | Rs. 5,661.13 Cr (+14.00% YoY) |
| PAT (Q2) | Rs. 470.14 Cr (+15.65% YoY) |
| EBITDA margin | 13.84% (+31 bps YoY) |
| EPS (Q2) | Rs. 4.75 (+16.14% YoY) |
| Market cap | Rs. 92,027.08 Cr |
| CMP | Rs. 929.85 |
Quarter Snapshot
Tata Consumer delivered 14.00% YoY revenue growth with 15.65% group profit growth and +31 bps EBITDA margin expansion, tracking within management's FY27 guidance of double-digit revenue growth and +50-70 bps margin expansion. The Non-Branded business reversed Q1's decline and International margins normalized as guided, while India Business margin compressed 35 bps on tea/salt inflation pass-through. Cash conversion at 0.43x of H1 profit remains the main earnings-quality watch item, though it improved from 0.28x a year ago.
Key Investment Insights
Key Positives
- Consolidated revenue grew 14.00% YoY to Rs.5,661.13 Cr (11% constant currency) against a demanding +18% year-ago base; H1 up 12.98%
- India Business grew 17.42% YoY with underlying India growth of 17% per the management note
- EBITDA margin expanded 31 bps YoY to 13.84% (H1 +57 bps to 13.69%), within management's guided +50-70 bps FY27 expansion
- Group net profit grew 15.65% YoY to Rs.470.14 Cr; EPS +16.14% YoY to Rs.4.75
- International Business margin expanded 182 bps YoY to 13.29% with segment result up 23.24% on 6.40% revenue growth, confirming coffee-cost normalization
- Non-Branded revenue reversed Q1's -7% to +11.63% YoY / +32.38% QoQ with margin at 14.80% vs 9.86% in Q1
- Finance costs fell 22.66% YoY; borrowings (ex-lease) reduced Rs.302.21 Cr with debt-equity at 0.11
- H1 operating cash flow of Rs.386.10 Cr improved from Rs.203.41 Cr YoY and FCF stayed positive at Rs.137.06 Cr
Risk Factors
- India Business, the largest segment, saw margin compress 35 bps YoY to 11.14% despite 17.42% revenue growth, reflecting input-cost inflation only partially passed through at segment level
- H1 cash conversion weak at 0.43x group net profit, driven by Rs.343.68 Cr inventory build and Rs.462.72 Cr receivables/other-asset outflow
- Effective tax rate rose ~111 bps YoY to 25.23%, the main wedge between PBT growth (+19.40%) and NPAT growth (+17.68%)
- Employee costs grew 16.98% YoY, outpacing revenue growth of 14.00%
- Standalone PAT declined 14.86% YoY on the Rs.64.37 Cr exceptional charge
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