Tata Consumer Products’ growth businesses expanded 40% in Q2 FY27 as Managing Director and CEO Sunil D’Souza linked their performance to a distributor redesign intended to give different product lines distinct routes to market.
The company said its growth portfolio represented 38% of India business in the quarter. India branded underlying volume growth was 11%.
Mint reported that the redesign was completed in February and detailed its regional setup. In markets with strong salt sales, Tata Consumer separated salt distribution from other products. Where tea and salt both sold strongly, it assigned distributors to either core or growth portfolios.
D’Souza also described the salt/non-salt and core/growth arrangements on the company’s Oct. 26 earnings call. In his Mint interview, he said, “I think we’ve unlocked our growth,” referring to the distribution changes.
The growth businesses include Tata Sampann, ready-to-drink beverages, Tata Soulfull, vending, Capital Foods and Organic India. In FY26, they grew 24%, exceeded ₹4,000 crore in revenue and accounted for 31% of India business. In Q2 FY27, Tata Sampann revenue rose 57%, while ready-to-drink revenue increased 47% alongside 34% volume growth.
Salt revenue increased 15% and volume rose 9% despite a price increase; volumes of value-added and premium salt grew 17%. India tea volumes were flat amid subdued category demand, and the company cited input-cost inflation as a pressure on its India branded business.
For the quarter ended Sept. 30, 2026, consolidated revenue from operations rose 14% to ₹5,661.13 crore from ₹4,965.90 crore a year earlier. Group consolidated net profit was ₹470.14 crore, compared with ₹406.51 crore. The company’s investor presentation showed EBITDA of ₹794 crore, up 18%, and a margin of 14.0%, an increase of 40 basis points.
D’Souza said the company would assess distributors each quarter for possible further splits. He did not specify a date for the next review.
