Key facts
- Tata Consumer Products aims for an EBITDA margin exceeding 20% in the long term.
- The company currently operates at an EBITDA margin of around 14%.
- Growth businesses now represent over 30% of the India portfolio.
- Fiscal 2026 revenue increased by 15% to Rs 20,290 crore.
- Net profit rose by 20% to Rs 1,547 crore in fiscal 2026.
Tata Consumer Products Ltd (TCPL) is targeting an EBITDA margin exceeding 20% over the long term, according to Tata Sons chairman N Chandrasekaran. The company, which currently operates at around a 14% EBITDA margin, plans to achieve this through a combination of better product mix, volume growth, and increased contributions from premium and high-margin categories.
Chandrasekaran indicated that margins should improve by 50-100 basis points annually, depending on market conditions, with a medium-term goal of reaching 17% before crossing the 20% threshold. This strategic focus aligns with TCPL's positioning as a diversified FMCG company, moving beyond its traditional tea and salt business.
Growth businesses, including Tata Sampann, Tata Soulfull, Capital Foods, Organic India, and NourishCo, now constitute over 30% of the company's India portfolio and are expanding at a faster rate than the core business. TCPL anticipates at least 25% annual growth from acquisitions like Capital Foods and Organic India, which together generated over Rs 1,300 crore in revenue in fiscal 2026.
The company is also emphasizing innovation and digital capabilities, having launched approximately 80 products in fiscal 2026, with innovation contributing 4.5% of sales. AI is being deployed across product development, demand forecasting, and supply chain operations. In fiscal 2026, TCPL reported a 15% increase in revenue to Rs 20,290 crore and a 20% rise in net profit to Rs 1,547 crore. Emerging channels, particularly quick commerce, now account for more than 35% of its Indian business.