Tata Consumer Products Grants Third Tranche of Performance Share Units

Tata Consumer Products Limited has announced the grant of the third tranche of Performance Share Units (PSUs) to eligible employees. The Nomination and Remuneration Committee of the Board approved the grant of 3,25,020 PSUs on May 08, 2026. This decision follows the authority granted by shareholders through a postal ballot conducted on May 4, 2024.

Grant Details

The allocation is made under the Tata Consumer Products Limited- Share-based Long Term Incentive Scheme 2024 (TCPL-SLTI Scheme 2024). The scheme is fully compliant with the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. The total number of PSUs granted corresponds to an equal number of fully paid-up equity shares, each with a face value of Re. 1/-.

The specific number of units granted to each employee was determined by dividing the Long Term Incentive Pay amount awarded to the employee by the Closing Market Price of the shares on the National Stock Exchange (NSE). The reference price used was from May 07, 2026, which was one trading day prior to the committee's approval.

Pricing and Exercise Terms

The exercise price for the PSUs has been fixed at Re. 1/- per unit, which represents the face value of the underlying equity shares. As this is a grant announcement, details regarding vested options, exercised options, and money realized are not applicable at this stage.

Particulars Details PSUs Granted 3,25,020 Underlying Shares 3,25,020 fully paid-up equity shares of Re. 1/- each Exercise Price Re. 1/- per PSU Pricing Basis Face value of underlying equity shares Regulatory Compliance SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021

The exercise period for these units will commence from the date of vesting. Generally, this period will expire at the end of twelve months from the vesting date. However, exceptions exist for events such as the death or permanent incapacity of a participant. Additionally, the Nomination & Remuneration Committee retains the discretion to extend the exercise period by a further two years if deemed appropriate.

Scheme Information

Significant terms and conditions of the PSUs were previously disclosed as part of the Explanatory Statement in the Postal Ballot Notice dated March 14, 2024. The company has made this information available on its official website. The disclosure ensures compliance with the applicable provisions of the SEBI Listing Regulations.

Tata Consumer Products Limited's Board of Directors approved the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, at a meeting held on May 8, 2026. Statutory auditors Deloitte Haskins & Sells LLP issued audit reports with unmodified opinions on both financial statements. In a landmark milestone, the company crossed ₹20,000 crores in consolidated revenue for FY26, reflecting broad-based, volume-led growth across its India and International businesses. The Board has recommended a final dividend of ₹10 per equity share of face value ₹1 each (1000%), up 21% year-on-year, for FY 2025-26, subject to shareholder approval at the ensuing 63rd Annual General Meeting, scheduled to be paid or dispatched on or after June 15, 2026. In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company has also made available the audio recording of the Analysts/Investors Call held on May 08, 2026, accessible via the company's investor relations page.

Consolidated Financial Performance

On a consolidated basis, revenue from operations for Q4 FY26 grew 18% (15% in constant currency) year-on-year, driven by underlying growth of 13% in India Business, 9% in International Business, and 41% in Non-Branded Business. Consolidated EBITDA for the quarter stood at ₹796 crores, up 27% YoY, with an EBITDA margin of 14.57% compared to 13.47% in Q4 FY25. For the full year, consolidated EBITDA reached ₹2,815 crores, up 12%. Improvement in operating performance of the Branded Business was aided by lower tea cost inflation, leading to margin expansion in India, partly offset by US tariff and coffee cost inflation in the International Business. Profit before exceptional items and tax at ₹641.37 crores was higher by 32% for the quarter. Group Consolidated Net Profit for the quarter was ₹424.02 crores, higher by 22% year-on-year.

The following table presents the key consolidated financial metrics:

Metric: Q4 FY26 Q4 FY25 FY26 FY25 Revenue from Operations (₹ Cr): 5433.62 4608.22 20290.43 17618.30 Total Income (₹ Cr): 5486.18 4664.73 20455.18 17811.55 EBITDA (₹ Cr): 796.00 621.00 2815.00 — EBITDA Margin (%): 14.57 13.47 — — Profit before Exceptional Items & Tax (₹ Cr): 641.37 484.38 2192.84 1781.66 Group Consolidated Net Profit (₹ Cr): 424.02 348.72 1546.80 1287.10 Basic EPS (₹): 4.24 3.49 15.59 13.06

The consolidated balance sheet as of March 31, 2026, reflected total assets of ₹34452.96 crores and total equity of ₹23188.86 crores. Key consolidated financial ratios for FY26 include an operating margin of 10.78%, net profit margin of 7.62%, current ratio of 1.57, and a debt-equity ratio of 0.12.

Consolidated Cash Flow Highlights

For the year ended March 31, 2026, net cash from operating activities stood at ₹2421.85 crores, compared to ₹2056.65 crores in the previous year. Net cash used in investing activities was ₹1398.17 crores, while net cash used in financing activities was ₹1075.39 crores. Closing cash and cash equivalents stood at ₹1412.79 crores, with a balance sheet reconciliation figure of ₹3046.57 crores.

Consolidated Exceptional Items

Exceptional items for Q4 FY26 include fair value gains of ₹56 crores on remeasurement of contingent consideration, asset write-down of ₹34 crores, impairment of goodwill of ₹16 crores, and statutory impact of New Labour Codes of ₹3 crores. For the full year, exceptional items include fair value gains of ₹56 crores on remeasurement of contingent consideration, profit on sale of non-core assets of ₹35 crores, asset write-down of ₹69 crores, impairment of goodwill of ₹16 crores, and statutory impact of New Labour Codes of ₹26 crores.

Standalone Financial Performance

On a standalone basis, revenue from operations grew 16% year-on-year for Q4 FY26, driven by growth in both Branded and Non-Branded businesses. Operating performance of the branded business improved mainly on account of tapering of tea cost inflation, partly offset by coffee cost inflation in the Non-Branded Business. Profit before exceptional items and tax for the quarter stood at ₹455.71 crores, higher by 64% compared to the corresponding quarter of the previous year. Net profit after tax for the quarter was ₹315.16 crores, higher by 14%, driven by higher exceptional costs. For the full year, net profit after tax reached ₹1635.15 crores.

The following table summarises the key standalone financial metrics:

Metric: Q4 FY26 Q4 FY25 FY26 FY25 Revenue from Operations (₹ Cr): 3891.76 3354.16 14700.05 12801.85 Total Income (₹ Cr): 3920.11 3369.37 15249.10 13258.95 Profit before Exceptional Items & Tax (₹ Cr): 455.71 278.59 2062.76 1447.84 Net Profit after Tax (₹ Cr): 315.16 276.90 1635.15 1254.75 Basic EPS (₹): 3.18 2.80 16.52 12.82

The standalone balance sheet as of March 31, 2026, showed total assets of ₹22629.90 crores and total equity of ₹17804.81 crores. Key standalone financial ratios for FY26 include an operating margin of 10.92%, net profit margin of 11.12%, current ratio of 1.40, and a debt-equity ratio of 0.04.

Standalone Cash Flow Highlights

For the year ended March 31, 2026, net cash from operating activities stood at ₹1451.49 crores, compared to ₹1274.11 crores in the previous year. Net cash used in investing activities was ₹517.59 crores, while net cash used in financing activities was ₹833.83 crores. Closing cash and cash equivalents stood at ₹325.45 crores, with a balance sheet reconciliation figure of ₹357.26 crores.

Standalone Exceptional Items

Exceptional items for Q4 FY26 include fair value gains on remeasurement of contingent consideration of ₹56 crores, fair value loss on financial instruments of ₹33 crores, impairment of investment in an associate of ₹21 crores, asset write-down of ₹34 crores, and statutory impact of New Labour Codes of ₹3 crores. For the full year, exceptional items include fair value gains on remeasurement of contingent consideration of ₹56 crores, profit on sale of non-core assets of ₹35 crores, fair value loss on financial instruments of ₹33 crores, impairment of investment in an associate of ₹21 crores, asset write-down of ₹34 crores, and statutory impact of New Labour Codes of ₹20 crores.

Segment Performance

The group's business is organised into Branded and Non-Branded segments, with the Branded segment further sub-categorised into India Business and International Business. The following table presents segment-wise revenue and results for FY26:

Segment: Revenue FY26 (₹ Cr) Revenue FY25 (₹ Cr) Results FY26 (₹ Cr) Results FY25 (₹ Cr) India Business: 12778.88 11240.71 1503.74 1020.98 International Business: 5250.67 4548.55 626.13 666.61 Total Branded Business: 18029.55 15789.26 2129.87 1687.59 Non-Branded Business: 2387.00 1909.53 280.47 407.11 Total Segment: 20416.55 17698.79 2410.34 2094.70

The India Business segment covers the sale of branded Tea, Coffee & Water and food products in India, while the International Business covers similar branded products globally. The Non-Branded Business encompasses plantation and extraction operations for tea, coffee, and other produce. Non-Branded Business margins were lower on account of reversals of fair value gains of the previous year. The 'Growth businesses' crossed ₹4,000 crore in FY26, accounting for 31% of India business, and grew 24% during the year. An executive has further indicated that the 'Growth' segment is expected to rise by 30%, reflecting continued confidence in the portfolio's expansion trajectory.

India Business Highlights

The India Beverages business grew 4% for the quarter, bringing FY26 growth to 8%. India tea volumes grew 4% in Q4, with revenue marginally declining as the benefit of lower input costs were passed on to consumers. Coffee continued its strong trajectory with revenue growth of 20% for the quarter. The Ready-to-Drink (RTD) business delivered its third consecutive quarter of double-digit growth, recording 23% revenue growth in Q4, and entered the electrolyte beverages category with the small pack launch of 'Tata Electrolyte'. New beverage launches during the quarter included Tata Tea Gold Iced Tea, Tetley Matcha Latte, and Tata Coffee cold coffee.

The India Foods business delivered strong growth of 21% for the quarter, bringing FY26 growth to 18%. Salt revenue grew 12% during the quarter, marking the fifth consecutive quarter of double-digit growth in the Salt business. Tata Salt launched 'Lo-Sodium' Rock Salt with 15% lower sodium. Tata Sampann recorded 69% growth for the quarter, expanding into protein snacking with Protein Crunch Makhana and Hi-Protein Edamame. Capital Foods expanded its portfolio with the launch of Manchurian and Schezwan Cup Noodles. The Robust Underlying Volume Growth (UVG) for the India branded business stood at 16% for the quarter and 13% for the year.

International Business and Tata Starbucks

The International business revenue grew 21% (11% in constant currency) for the quarter, delivering FY26 growth of 16% (9% in constant currency). In the USA, Eight O'Clock Coffee continued to gain market share, growing at more than double the category rate. Tata Starbucks recorded its third consecutive quarter of positive same store sales growth (SSSG), with a brand footprint of 502 stores across 80 cities. The brand advanced beverage customization with hot beverages now served with zero/low/regular sugar options, and scaled its 'Everyday Choices Made Better' platform featuring Protein cold foam and Zero-added-sugar syrups.

Innovation and Management Commentary

Innovation remained a core growth driver, with 80 new launches in FY26 across Health & Wellness, Convenience, and Premiumisation themes. Innovation-to-sales stood at 4.5%, described as best-in-class, with revenue from innovation having scaled 7X since FY21.

Commenting on the results, Sunil D'Souza, Managing Director & CEO of Tata Consumer Products, said: "We delivered a strong finish to FY26 with another quarter of consistent double-digit topline growth. Performance was broad-based across our core and growth businesses, reflecting sustained momentum in execution, innovation and brand building. The Foods business continued its strong trajectory with Tata Sampann recording exceptional growth momentum. Our 'Growth' businesses grew 24% in FY26 and accounted for 31% of the India business, demonstrating the steady transformation of our portfolio. Innovation continued to fuel our growth agenda with 80 new launches in FY26 across categories. As we move into the next phase of growth, we remain focused on building scale, strengthening our portfolio and consistently delivering value to consumers, customers and shareholders."