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Informist, Friday, May 8, 2026

--Tata Consumer:E-commerce, quick-commerce comprise 21% of our portfolio now 

--CONTEXT: Comments from Tata Consumer mgmt in post-earnings analyst concall 

--Tata Consumer: Not worried about margin in next 2-3 months 

--Tata Consumer: Confident about 30% consistent growth in NourishCo Beverages 

--Tata Consumer: Open to acquisitions, but nothing in the works currently 

--Tata Consumer:See fuel price, broader inflation as only possible headwinds 

--Tata Consumer: Don't see much impact from West Asia war yet 

--Tata Consumer: May hike prices only if compelled by prolonged W Asia war 

--Tata Consumer: Shipping back to normal in Apr after disruption in Mar

By Shakshi Jain and Ashutosh Pati 

NEW DELHI/MUMBAI – Amid concerns about the impact of the West Asia war on operations of fast-moving consumer goods companies, Tata Consumer Products Ltd. Friday said it wasn't worried about its margins in the next two to three months. After disruptions in March, shipping has returned to normal, the company's management said in a post-earnings conference call with analysts on Friday. "I wouldn't lose sleep on trying to figure out margins, at least in the next two, three months," a top company executive said.

Even though packaging costs have risen slightly for the company and there's been some bump-up because of the areas where the company uses liquefied petroleum gas, the management said it did not see a significant impact from the West Asia war because of a balanced portfolio, commodity mix, and share of highly processed food. However, if fuel prices rise and there is broad-based inflation due to the war, it could be a different story, a top company executive said.

"But with the current set of variables, we don't see a high pressure per se and I think we've got enough in our equity for all the categories for us to take increases to make sure we will mitigate margins...right now, we remain confident of delivering top-line numbers and EBITDA (earnings before interest, tax, depreciation, and amortisation) ahead of top line. And top line, we will grow at double digits," the executive said. Further, he assured that the guided 50-75 basis point year-on-year expansion in operating margin is set to happen in 2026-27 (Apr-Mar). 

In the event fuel prices shoot up and there is broader inflation in place, the management reckons price hikes would be an industry-wide phenomenon to make sure companies protect their margins.  

For the March quarter, Tata Consumer Products reported around 18% year-on-year growth in its consolidated top line at over INR 54 billion, along with a more than 21% rise in bottom line at INR 4.2 billion. The foods business in India delivered 21% on-year growth during the quarter to around INR 18 billion and the domestic beverages business grew 4% on year for the quarter to over INR 16 billion. The ready-to-drink business delivered its third consecutive quarter of double-digit growth, recording 23% revenue growth and 28% volume growth in the March quarter.

Going forward, the management is confident of 30% consistent growth in the NourishCo brand of beverage portfolio.

Among other areas, the management said quick commerce and e-commerce comprise 21% of the company's overall portfolio now. "On the quick commerce, e-commerce, our philosophy is very clear. We will be where the consumer is. And if the consumer is shifting from GT (general trade), modern trade to e-comm, quick comm, we will be there first and then we'll figure out all the other pieces later," the management said.

Overall, the company remains open to acquisitions to fuel growth but currently there does not seem to be a match between what the company is looking for and the available options. 

On Friday, shares of Tata Consumer closed 2.1% higher at INR 1,176.20 on the National Stock Exchange.  End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Avishek Dutta

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