The company reported a consolidated profit before exceptional items and tax of 5.13 billion rupees ($61.8 million) in the quarter ended Dec. 31, up 27% from the year-ago period.

The company incurred an expense of 915.3 million rupees due to acquisition-related costs, service expenses, and business restructuring.

Revenue from operations rose nearly 10% to 38.04 billion, led by a 10% growth in its domestic business.

The business constitutes 62.4% of its total revenue. Tata Consumer's key beverages segment grew 8%, with its tea volumes up 2% amid sustained domestic demand.

It also benefited from strong demand for staples like salt, despite higher prices compared to rivals ITC and Marico according to analysts.

Tata Consumer's core profit margin expanded 190 basis points to 15% year-on-year.

The Tata Group company, which also runs a joint venture with Starbucks in India, said its international business grew 11%.

"In both tea and salt, we saw premiumisation at play with the premium portfolio in tea and the value added salt portfolio recording good growth," said Sunil D'Souza, managing director and CEO.

Tata Consumer's results comes after bigger rival Britannia Industries reported a near 2% fall in profit due to subdued rural demand and elevated competition from smaller packaged food makers.

In contrast, ITC reported better-than-expected profit, helped by price hikes.

In January, Tata Consumer said it would buy a 75% stake in Capital Foods, known for its "Ching's Secret" and "Smith Jones" brands for 51 billion rupees, and wholly acquire health products maker Organic India for 19 billion rupees.

Shares of Tata Consumer closed up 0.23% ahead of results.

($1 = 82.9685 Indian rupees)

(Reporting by Navamya Ganesh Acharya in Bengaluru; Editing by Varun H K)