Tata Consumer Q2 FY27 Results (NSE: TATACONSUM)
Signal: Steady quarter
The read
The trajectory is still positive but mixed: consolidated revenue growth accelerated to 14.0% from 11.9% in Q1FY27 and profit before exceptional items and tax grew 20.8% to ₹632.28 crore, yet gross margin slipped approximately 39bps YoY as India input inflation persisted and standalone PAT fell 14.9% after a ₹64.37 crore exceptional charge.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹5,661.13 Cr | +14.0% | +5.8% |
| Net profit | ₹470.14 Cr | +15.6% | |
| EPS | ₹4.75 | +16.1% | |
| EBIT margin | N/A |
P&L walk
Consolidated revenue increased 14.0% YoY to ₹5661.13 crore, while profit before exceptional items and tax grew 20.8% to ₹632.28 crore; India growth of 17% and lower finance costs offset inflationary pressure on key India branded inputs, with group PAT up 15.6% to ₹470.14 crore.
Segments
No segment table is included in the supplied text; the consolidated-versus-standalone gap is material, with group PAT of ₹470.14 crore versus standalone PAT of ₹242.81 crore, indicating subsidiaries and associates contributed substantially to reported earnings.
Key positives
- Consolidated revenue reached ₹5661.13 crore, up 14.0% YoY and 5.8% QoQ, led by 17% India Business growth and 9% Non-Branded Business growth.
- Profit before exceptional items and tax rose 20.8% YoY to ₹632.28 crore, ahead of revenue growth, as the filing cited improved operating performance.
- Finance costs declined 22.7% YoY to ₹25.70 crore, supporting pre-tax profit conversion.
- Basic EPS grew 16.1% YoY to ₹4.75, slightly ahead of 15.6% group PAT growth.
Key concerns
- Gross margin compressed approximately 39bps YoY to 41.7% on inflationary pressure in key India branded inputs; the filing did not disclose a quantified pass-through or pricing response.
- International Business revenue was marginally lower because of the continued heatwave, creating a drag against 14.0% consolidated growth.
- Standalone employee costs rose 23.8% YoY to ₹232.17 crore, faster than standalone revenue growth of 17.0%.
- Standalone PAT declined 14.9% YoY to ₹242.81 crore because of a ₹64.37 crore exceptional charge, making the parent result materially weaker than the consolidated result.
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