Profit before exceptional items and tax stood at Rs 424.24 crore in Q2 FY25, down 16.06% YoY, primarily on account of finance costs and amortisation expenses relating to the acquisitions.

Consolidated EBITDA grew 11% to Rs 629 crore while EBITDA margin reduced by 30 basis points to 14.9% in Q2 FY25 as compared to the same period a year ago. This was primarily led by higher input costs for the India tea business.

For the quarter, the India Beverages business revenue grew 3% (-4% excluding organic growth), impacted by subdued demand environment. Coffee continued its strong trajectory with a revenue growth of 29% for the quarter.

The India Foods business revenue grew over 28% during the quarter (+9% excluding Capital Foods). The value-added salt portfolio continued its strong momentum and grew 26% during the quarter, with rock salt registering record volumes. Additionally, Tata Sampann portfolio continued its strong momentum and grew 26% for the quarter.

Growth businesses grew 15% organically. The RTD business was impacted by unfavourable weather and competitive actions.

The company said that with the integration completed for the newly acquired businesses, there was a strong sequential growth of 25% in Capital Foods and 45% in Organic India. Additionally, TCPL is starting to realize strong synergy benefits in both businesses, with strong EBITDA margin expansion.

The International business recorded 7% revenue growth (+5% in constant currency). Profitability improved significantly led by strong topline in the UK business and structural interventions made earlier.

Tata Starbucks opened 19 net new stores during the quarter and entered 5 new cities. This brings the total number of stores to 457 across 70 cities. Tata Starbucks is now the largest organised café operator in India.

Sunil D’Souza, managing director & CEO of Tata Consumer Products, said, “We delivered a topline growth of 13% in Q2 FY25, with an EBITDA growth of 11%. During the quarter, we recorded continued growth & market share gain in the India salt business, strong growth in Tata Sampann & Tata Soulful. Our India tea business was impacted by subdued category trends. With the integration completed for both Capital Foods and Organic India, we are starting to see strong synergy benefits and both businesses witnessed strong quarter-on-quarter growth.

We delivered strong performance in the International Business along with significant margin expansion led by strong revenue growth in the UK and earlier structural interventions. In India, we continued to strengthen our Sales & Distribution infrastructure with the rollout of a new Distributor Management system, centralized planning & dispatch capability and an auto replenishment system.

Modern trade and e-commerce continue to be strong contributors to our growth. In addition, we are incubating new channels (Food Services/HoReCa and Pharmacies) to fuel growth. The merger of our wholly owned subsidiaries in India- NourishCo, Tata Soulfull and Tata SmartFoodz was successfully completed during the quarter in line with our ambition to simplify, synergise and scale the business.”

On half year basis, the company’s consolidated net profit marginally rose to Rs 654.74 crore in H1 FY25 as agaimts Rs 654.83 crore in H1 FY24. Revenue jumped 14.60% YoY to Rs 8,566.52 crore in first half of FY25.

Tata Consumer Products is a focused consumer products company uniting the principal food and beverage interests of the Tata Group under one umbrella. The company's portfolio of products includes tea, coffee, water, RTD, salt, pulses, spices, ready-to-cook and ready-to-eat offerings, breakfast cereals, snacks and mini meals.

Shares of Tata Consumer Products rose 0.66% to settle at Rs 1,097.65 on the BSE.