One of the leading FMCG stocks engaged in the business of providing popular brands such as Tata Tea, Tetley, Eight O’Clock Coffee, Tata Salt, and Tata Sampann has plunged by over 8.5% after the announcement of the September quarter of the financial year 2025.
Stock Movement:
After announcing its quarterly results, Tata Consumer Products Limited’s share has plunged by 8.59%. The stock opened at ₹1094.65 and is currently trading at ₹1000.60, with a high of ₹1058.45 and a low of ₹991.50. The market capitalization now stands at approximately ₹98,999.72 crore.
Reason for Falls:
Tata Consumer Products faced significant challenges as its India beverage business saw a 3% revenue decline and a 4% volume drop. The company’s tea market share slipped 20 basis points due to soft demand. The company’s ready-to-drink segment struggled with an 11% revenue decline, hit by unfavorable weather and competitive pricing pressures. Despite these challenges, growth in the company’s food business was muted, with organic revenue rising 9%, though volumes increased only by 1%.
Q2 FY25 Result Walkthrough:
Coming into the financial analysis of Tata Consumer Products Limited, the company’s consolidated revenue from operations increased by 12.87 percent YOY, from Rs. 3733.78 crore in Q2 FY24 to Rs. 4214.45 crore in Q2 FY25, and down by 3.16 percent QoQ from Rs. 4352.07 crore in Q1 FY25.
Tata Consumer Products Limited accumulated revenue from branded business by 89.08% and non-branded business by 10.91% in Q2 FY25. The company has earned from Indian business by Rs. 2655.19 crore and international business by Rs. 1116.01 crore in the same quarter.
In Q2 FY25, Tata Consumer Products Limited’s consolidated net profit slightly increased by 0.09% YOY, reaching Rs. 367.21 crore compared to Rs. 363.92 crore during the same period last year. As compared to Q1 FY25, the net profit has increased by 26.99 percent, from Rs. 289 crore.
The basic earnings per share increased by 23.93% and stood at Rs 3.78 as against Rs 3.05 recorded in the previous quarter FY25.
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Company Profile:
Tata Consumer Products Limited (TCPL) is a leading Indian fast-moving consumer goods company and part of the Tata Group. The headquarters is in Mumbai, Maharashtra. The company produces and distributes a wide range of food and beverage products. The
company was formed in February 2020 through the merger of Tata Global Beverages and Tata Chemicals’ consumer products division.
The company has reached more than 263 million households in India and distribution to four million retail outlets. It is among the top FMCG companies in India and the top 2 branded tea players in the world. Tata Starbucks is now the largest cafe operator in India, with 457 stores across 70 cities.
The company operates through two main segments, such as branded and non-branded businesses across multiple continents. Its branded segment covers both Indian and international markets, offering beverages and food products. The company distributes popular brands like Tata Tea, Tetley, Eight O’Clock Coffee, Tata Salt, and Tata Sampann.
Written by – Nikhil Naik
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