Tata Consumer Reports 15% Profit Rise, Misses Estimates on Tea Price Impact

Tata Consumer Products Ltd reported a 15% year-on-year increase in net profit to approximately ₹334 crore for the first quarter of fiscal 2026, narrowly missing analyst estimates, which predicted around ₹355 crore. Revenue grew nearly 10% to ₹4,779 crore, slightly below expectations. However, the company's operating profit (EBITDA) fell 9% to ₹608 crore, with the EBITDA margin contracting to 12.7%, signaling margin pressure. The profit shortfall was attributed to elevated tea and coffee prices, driven by adverse weather conditions and supply chain disruptions, which impacted the company's branded business both in India and internationally. Despite the top-line growth, these inflationary pressures weighed on profitability, causing shares to decline post-results. Overall, elevated input costs in key commodities remain a challenge for Tata Consumer Products' earnings outlook.