Tata Consumer Products Limited

Tata Consumer Products Limited delivered a robust Q3 FY26, with consolidated revenue growing 15% to reach ₹5,112 crores, marking the first time the company crossed the ₹5,000 crore quarterly revenue milestone. This growth was broad-based across India, International, and Non-branded segments, all achieving double-digit growth. Consolidated EBITDA increased by 26% YoY, and EBITDA margins expanded 120 bps YoY to 14.2%, reflecting improved profitability.

The India branded business demonstrated strong underlying volume growth of 15%. India Tea revenue grew 7% to ₹1,600 crores, though market share was down 70 bps due to pricing adjustments. The India Foods business also grew 19% to ₹1,600 crores, with Salt revenue up 14% and volume up 15%, leading to a 40 bps market share gain. Management attributed Salt's growth to market share gains and improved penetration rather than just per capita consumption.

The company is in the process of a national rollout of its new segmented go-to-market (GTM) model, with 82% completion and targeting 100% by the first week of February. This strategy involves separating distributors for Salt-heavy geographies and non-Salt categories, as well as realigning sales hierarchy to provide dedicated focus. The GTM changes are designed to drive growth across all categories, particularly the new growth businesses, and are not restricted to specific states.

Growth businesses, including Capital Foods, Organic India, Soulfull, RTD, and Tata Sampann, grew 29% and now contribute 30% to the company's total revenue, surpassing ₹1,000 crores quarterly. Tata Sampann recorded a strong 45% growth, entirely volume-driven, with its dry fruits business now at a ₹250-300 crore annual run rate. The innovation pipeline remains strong, with 15 new product launches this quarter, bringing the year-to-date total to 55, and innovation to sales at 4.8%, close to the 5% target for FY26.

The International business grew 18% to ₹1,300 crores, with constant currency revenue growth of 11%. US Coffee showed strong volume and 31% revenue growth. However, international margins have not yet reached normative levels, primarily due to the impact of coffee cost increases that have not been fully passed on. Management expects normalized pricing for international business in about a quarter, following recent price increases in the US.

Tata Starbucks continued its growth trajectory, reporting a 3% same-store sales growth for the second consecutive quarter. The company opened 12 new stores during the quarter, bringing the total count to 504 across 81 cities. Management noted that average daily traffic has stabilized and ticket sizes are holding, indicating a recovery in the QSR industry and confidence in the coffee opportunity in India.