Tata Consumer Products Ltd (TATACONSUM) Q1 FY27 Results Analysis: PAT Jumps 27.78%, India Branded Margin Expands

Tata Consumer Products Ltd's Q1 FY27 numbers came in strong, with revenue of Rs. 5,348.88 Cr (+11.93% YoY) and PAT growth of +27.78% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

TATACONSUM delivered strong Q1FY27 results with 11.93% revenue growth and 27.78% PAT growth, driven by India Branded margin expansion from tea cost tapering. Coffee cost inflation pressured the Non-Branded segment, while International Branded showed a QoQ margin recovery. The company's strong baseline and conservative balance sheet provide a solid foundation for the year.

Key Investment Insights

Key Positives

• Revenue grew 11.93% YoY to Rs.5,348.88 Cr, with India Branded segment growing 13.26% and International Branded 17.25%.
• PAT-owners grew 27.78% YoY to Rs.426.98 Cr, with EBITDA growing 19.31% YoY.
• India Branded PBIT surged 35.71% YoY to Rs.393.96 Cr, margin expanding 184 bps to 11.13% due to tea cost tapering.
• International Branded PBIT grew 13.37% YoY, with margin recovering QoQ from 10.69% to 13.05%.
• Raw material cost as % of revenue improved by 256 bps YoY to 57.34%.
• Inventory turnover improved from 5.65 to 6.19.

Risk Factors

• Non-Branded segment revenue declined 7.12% YoY, PBIT dropped 23.95% YoY, margin compressed 218 bps due to coffee cost inflation.
• Consolidated revenue declined 1.56% QoQ, though partly seasonal.
• Subsidiary contribution to PAT is negative (Rs.287.29 Cr drag) due to dividend elimination and associate losses.
• Debt-equity ratio increased slightly to 0.14 from 0.12 in Q4FY26.