Tata Consumer Products Limited — Q4 FY26 earnings call

Call held 8 May 2026

Management summary

Tata Consumer Products delivered a strong Q4 FY26, with consolidated revenue up 18% and EBITDA margins expanding by 100 bps. The company crossed INR20,000 crores in full-year revenue, driven by robust performance in growth businesses like Sampann and continued distribution expansion. While some international segments faced temporary headwinds, the company maintains a healthy net cash position and remains focused on innovation and strategic acquisitions.

Highlights

  • Consolidated revenue grew 18% in Q4 FY26 to INR5,400 crores, and 15% for the full year, crossing INR20,000 crores.

  • Consolidated EBITDA grew 27% in Q4 FY26, with margin expanding 100 bps to 14.6%.

  • Growth businesses (Sampann, RTD, Capital Foods, Organic India) grew 24% for the full year, crossing INR4,000 crores, and 33% in Q4.

  • Salt market share was up by 100 bps, and the category delivered 12% revenue growth for the full year.

  • Innovation-to-sales ratio reached 4.5% with 80 new product launches during the year.

Concerns

  • India tea revenue declined 1% in Q4 FY26, primarily due to price cuts.

  • Tea market share was down 50 bps, though management noted limitations of Nielsen data in capturing quick-commerce and e-commerce channels.

  • International business growth was impacted in March due to Middle Eastern shipping disruptions, affecting Capital Foods and Organic India exports.

Key financials

  1. Consolidated Revenue ₹5,400 Cr +18%YoY
  2. Consolidated EBITDA Growth 27%
  3. Consolidated EBITDA Margin 14.6%
  4. Full Year Revenue ₹20,000 Cr +15%YoY
  5. Full Year EBITDA Growth 12%
  6. Adjusted EPS ₹17.3

What they filed

Q1 FY27: revenue up 11.9%, net profit up 28.6% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue4,214 4,444 4,608 4,779 4,966 +18%5,112 +15%5,434 +18%5,349 +12%
EBITDA626 565 621 607 672 +7%721 +28%792 +28%724 +19%
Net profit367 282 349 332 407 +11%385 +37%424 +21%427 +29%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • India Business
    16% UVG Q413% UVG Full Year4% Tea Volumes Q4-1% Tea Revenue Q46% Tea Revenue Full Year12% Salt Revenue Full Year₹4,000 Cr Growth Businesses Full Year Revenue33% Growth Businesses Q4 Growth69% Sampann Q4 Growth46% Sampann Full Year Growth28% RTD Q4 Volume Growth23% RTD Q4 Revenue Growth₹260 Cr RTD Total Revenue33% Tata Copper Plus Q4 Growth26% Tata Copper Plus Full Year Growth₹135 Cr Organic India Revenue₹213 Cr Capital Foods Revenue15% Modern Trade Contribution19% E-com plus Quick-com Contribution₹170 Cr Food Services ARR₹100 Cr Vending ARR₹30 Cr Pharmacy ARR₹500 Cr Dry fruits and cold-pressed oils ARR (each)
  • International Business
    21% Q4 Growth16% Full Year Growth11% Q4 Constant Currency Growth9% Full Year Constant Currency Growth20% U.S. Coffee Q4 Growth43% U.S. Coffee Full Year Growth3% U.K. Revenue Growth4% U.K. Volume Growth7% Canada Revenue Growth
  • Non-branded
    41% Q4 Growth23% Full Year Growth
  • Starbucks
    5% Same-store Sales Growth7% Total Growth502 units Total Stores23 units Net New Stores

Capital allocation

high confidence
  • Debt Net ₹3,000 Cr
    And we're now sitting with roughly INR3,000 crores of net cash.
  • Dividend ₹10/share (final)
    The Board recommended a dividend of INR10 per share, which is a substantial increase on where it was last year.
  • Liquidity Cash ₹3,000 Cr
    And we're now sitting with roughly INR3,000 crores of net cash.

Guidance & targets

Profitability

  • EBITDA Margin Expansion Profitability · Full Year · High confidence 50 to 80 bps
    So 50 to 75, 80 bps is a given. I mean it's not an option. We will deliver it, number one.

    — Sunil D'Souza

Marketing Spend

  • A&P-to-sales ratio Marketing Spend · as we go forward · High confidence 7.5% to 8.5%
    But as I said, directionally, we will be the 7.5% to 8.5% ratio as we go forward.

    — Sunil D'Souza

Top Line Growth

  • Consolidated Top Line Growth Top Line Growth · Longer term · High confidence double digits
    But right now, we remain confident of delivering top line numbers and EBITDA ahead of top line, right? And top line, we will grow at double digits.

    — Sunil D'Souza

Segment Growth

  • NourishCo Growth Segment Growth · consistently · High confidence 30%
    All that I can say is we remain confident of growing 30% consistently and improving our whole margin portfolio profile as well.

    — Sunil D'Souza

  • Growth Businesses Growth Segment Growth · near term · High confidence 30%
    So therefore, the growth portfolio will continue to chug along at this 30% number, at least in the near term.

    — Sunil D'Souza

Segment Margins

  • Sampann Margins Segment Margins · Medium confidence mid-teens plus
    But we don't look at food we look at tea separately. We look at salt separately. And Sampann separately. Salt is on a very strong wicket. Beverages has come back to a strong wicket. Tea sorry, Sampann per se is, I would say, headed towards the mid-teens sort of margin.

    — Sunil D'Souza

Volume Growth

  • India Tea Volume Growth Volume Growth · next 3 quarters · Medium confidence slightly higher than 4%

    From 4% today

    So let me answer the second question first. We've always mentioned for tea, we will target mid-single-digit growth and a couple of basis points of price mix, therefore, mid- to high single-digit total top line growth. From that perspective, we are almost there, but not there in this quarter. So I would aspire for a slightly higher number. That's number one.

    — Sunil D'Souza

Capacity

  • Vietnam Plant Capacity Expansion Capacity · early 2027 · High confidence online
    And we had already started a project to expand capacity out in Vietnam, which should be online by, I think very early in 2027.

    — Sunil D'Souza

What to watch in Q1 FY27

EBITDA Margin Expansion

Full Year FY27
Current 14.6% (Q4 FY26)
Target 50-80 bps expansion for FY27

Why it matters

This is a key profitability metric and indicates the company's ability to manage costs and pricing effectively.

So 50 to 75, 80 bps is a given. I mean it's not an option. We will deliver it, number one.

Risks & concerns

  • Input Cost Inflation (Packaging, LPG, Fuel)

    medium

    Increases in packaging costs, LPG, and potential broad-based fuel price increases could put pressure on margins, but management expects to mitigate through pricing actions.

    Both acknowledged

  • Geopolitical Disruptions to International Shipping

    low

    Middle Eastern issues caused shipping disruptions in March, impacting international business, but these are temporary and expected to normalize from April.

    Management acknowledged

  • Limitations of Traditional Market Share Data

    low

    Nielsen data does not fully capture quick-commerce and e-commerce, leading to an incomplete picture of market share, prompting the company to potentially stop reporting it for benchmarking.

    Management acknowledged

Q&A highlights

8 direct
Gross Margins and A&P Spend Outlook Direct
So 50 to 75, 80 bps is a given. I mean it's not an option. We will deliver it, number one.

Management confirmed commitment to 50-80 bps EBITDA margin expansion for the full year despite current input cost pressures and increased A&P spend.

Asked by Mihir Shah

Sampann Growth Drivers and Margin Potential Direct
So the reason for Sampann growth from a portfolio perspective is, I would say, broad-based. But a little bit of higher impetus in the NPDs. But we've seen growth across pulses, poha, vermicelli, everything. I mean whole portfolio, I think we're getting stronger as a brand and portfolio per se. That's number one.

Management detailed the multi-faceted drivers behind Sampann's strong growth and reiterated its potential for mid-teens plus margins.

Asked by Mihir Shah

Reliability of Market Share Data Direct
And that's why we we are starting to stopping to publish because I don't want to get the discussion every time saying the numbers are not right, et cetera, right?

Management explained the limitations of traditional market share data (Nielsen) due to uncaptured quick-commerce/e-commerce and modern trade, indicating a shift in internal benchmarking focus.

Asked by Abneesh Roy

Long-term Growth and Margins for Campa and NourishCo Direct
All that I can say is we remain confident of growing 30% consistently and improving our whole margin portfolio profile as well. In NourishCo we have 3 different verticals that we are very clearly focused on.

Management provided a clear long-term growth target of 30% for NourishCo and outlined its strategic focus areas within the segment.

Asked by Abneesh Roy

Impact of Geopolitical Issues on International Business Direct
Number one is in terms of availability of raw material and therefore, for business continuity, right? So from -- for the India business itself, we used to have some plastic closures and PET, et cetera, which we use to import. We've already shifted about I would say, about 15, 20 days back. And we are fully -- I mean there is no issue on continuity.

Management clarified that supply chain disruptions from Middle East issues were temporary and largely resolved, with no ongoing impact on raw material availability or business continuity.

Asked by Vivek Maheshwari

Acquisition Strategy for Growth Categories Direct
On the acquisitions front, we remain open. But right now, let me say, what we like is not for sale, what is for sale, we don't like, right?

Management articulated a selective approach to acquisitions, indicating a focus on strategic fit rather than opportunistic buying, while still aiming for 30% growth in existing growth businesses.

Asked by Vivek Maheshwari

India Tea Margins and Tea Price Outlook Direct
So Percy, the tea margins for Q4 are roughly where we want to be. We were not there in the beginning of the year. They started expanding as we went through the year, and we had taken pricing and costs went down. Roughly right now we are where we should be, and we'll aim to be in this ballpark.

Management confirmed that India tea margins are at desired levels and that tea prices are currently benign, providing comfort on future profitability in this core segment.

Asked by Percy Panthaki

Product Portfolio Expansion and Risk of Spreading Thin Direct
So as long as your playbook is very clear on how you're going to expand at lowest risk, lowest cost and highest impact I don't think there is a problem in launching innovation, right?

Management reassured that their extensive product innovation and portfolio expansion are managed through a clear, risk-mitigated playbook, leveraging new channels like e-commerce for efficient launches.

Asked by Percy Panthaki

2 min read 6 chapters

Detailed narrative

Strong Q4 and Full Year Financial Performance

Tata Consumer Products delivered a robust Q4 FY26, with consolidated revenue growing 18% to INR5,400 crores. For the full year, the company successfully crossed the INR20,000 crore mark, achieving 15% revenue growth. Consolidated EBITDA saw a 27% increase in Q4, leading to a 100 bps margin expansion to 14.6%. The full-year EBITDA growth stood at 12%, with a margin of 13.9%, and the company reported an adjusted EPS of INR17.3.

Growth Businesses Drive Performance

The company's strategic 'growth businesses' demonstrated strong momentum, crossing INR4,000 crores in revenue for the full year with a 24% growth rate. In Q4 alone, these businesses grew 33%, with Sampann leading the charge with 69% growth. RTD (Ready-To-Drink) also showed significant progress, with 28% volume and 23% revenue growth in Q4, totaling INR260 crores. Management expressed confidence in these growth categories continuing to expand at a 30% rate in the near to medium term.

Innovation and Distribution Expansion

Tata Consumer maintained a strong focus on innovation, launching 80 new products in FY26, effectively doubling the previous year's count, and achieving an innovation-to-sales ratio of 4.5%. The company completed the rollout of its new go-to-market system, significantly expanding its distribution reach. Modern trade contributed 15% to India business revenue with 20% growth, while e-commerce and quick-commerce channels saw a 62% increase, contributing 19% to the total.

Margin Management and Commodity Outlook

Despite some increases in packaging and LPG costs, management is confident in mitigating margin pressures through strategic price increases. The company aims for a 50-80 bps EBITDA margin expansion for the full year. Tea prices were noted as largely benign, trending about 5% ahead of last year, while coffee prices were coming down, with Arabica trading at $2.99. The A&P-to-sales ratio is expected to normalize to 7.5-8.5% going forward, after being slightly soft this quarter due to front-loading in Q2/Q3.

International Business and Salt Category Insights

The international business recorded 21% growth in Q4 and 16% for the full year, with the U.S. coffee business growing 20% in Q4 and 43% for the full year. However, exports faced temporary disruptions in March due to Middle Eastern geopolitical issues, impacting Capital Foods and Organic India. The salt category continued its stellar performance, with 12% revenue growth for the full year and a 100 bps increase in market share, driven by portfolio diversification and strong brand equity, with Tata Salt having an 88% top-of-mind recall.

Capital Allocation and Strategic Acquisitions

The company maintains a healthy financial position with approximately INR3,000 crores in net cash. The Board recommended a dividend of INR10 per share, reflecting strong shareholder returns. While management remains open to attractive acquisitions, they are selective, noting that 'what we like is not for sale, what is for sale, we don't like.' Capacity expansion projects are underway for the Vietnam plant, expected online by early 2027, and for tea extracts, indicating continued investment in core and growth areas.

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