Tata Consumer Products reported a 15% revenue growth in Q3 FY’26. India branded business posted 15% underlying volume growth. Consolidated EBITDA was up 26%, with margins expanding to 14.2%. The company saw strong performance across various segments, including Tata Sampann, RTD, Capital Foods, and Organic India. The conference call discussed financial results, segment performance, and future outlook.
Key Financial Highlights
Revenue Growth: Tata Consumer Products achieved a 15% revenue growth for Q3 FY’26, crossing ₹5,000 crores in quarterly revenue.
India Business: The India branded business demonstrated strong performance with an underlying volume growth of 15%. India Tea was up 3%, with prices being passed on to consumers.
Growth Businesses: Growth businesses contributed 30% to the company’s revenue, with a growth rate of 29%.
Tata Sampann: Recorded a strong quarter with 45% growth, driven by volume.
EBITDA: Consolidated EBITDA increased by 26%, resulting in margin expansion of 60 bps quarter-on-quarter and 120 bps year-on-year to 14.2%.
Segmental Performance
India Beverages: Revenue of ₹1,600 crores, a growth of 7%.
Foods: Grew by 19%.
International: Revenue of ₹1,300 crores, a growth of 18%.
Non-Branded: Grew by 23%.
Strategic Initiatives and Outlook
Go-to-Market Strategy: The company has rolled out a new go-to-market model nationally, with 82% completion and expected full completion by the first week of February. This includes transitioning distributors and aligning routes using AI.
Innovation Pipeline: The company launched 15 new products throughout the year, achieving an innovation to sales ratio of approximately 4.8%.
Tata Starbucks: Opened 12 new stores during the quarter, reaching a total of 504 stores across 81 cities.
Margin Improvement: The company expects to be in the ballpark of 14.5%-15% EBITDA margin upon exiting Q4, with a long-term target of 17%+.
Commodity Prices
Tea: Prices broadly coming down to 2024 levels. A slight uptick was observed at the end of Q3 and is being closely monitored.
Coffee: Prices started to decrease, except for the impact of action in Venezuela.
Source: BSE
