More Stories

Informist, Wednesday, Jun. 10, 2026

 

By Avishek Rakshit

 

KOLKATA – While increasing its focus on expanding new foods categories, Tata Consumer Products Ltd. aims to increase gross margins from these products and is also eyeing an improvement in its operating margins at the company level, Chairman N. Chandrasekaran said Wednesday.

 

"The growth businesses this year have been growing at 24% (on year) and the plan is to increase the margin in these businesses," he said while responding to a shareholder's query at the company's 63^rd annual general meeting. "And we already seeing the launch of some new categories are helping us not only to grow the business but also increase the margin. The margin will happen with the right product mix and also with increasing volumes."

 

For instance, products under the Capital Foods, Soulfull, and Organic India brands offer around 48% gross margin compared to the 35-36% gross margin the company gets from the rest of the portfolio, which majorly includes tea and salt. Tata Consumer had acquired all the three brands in the past. While Organic India's portfolio is based on tea, infusions, and herbal health supplements, Soulfull is focussed on millet-based products. Capital Foods' portfolio is centred on chutneys, blended spices, sauces, soups, and in-home cooking of Italian and Chinese dishes. 

 

"Organic India has delivered a good growth this year (FY26). And Capital Foods and Soulfull have to grow faster. The plan is to get these acquisitions to start contributing at least 25% of the growth rate year on year. So, we have work to do," he said. 

 

Along with these brands, Tata Consumer considers the Sampann brand and its ready-to-drink beverages brands as the growth engines for the company. While the tea and salt business provides a steady revenue flow, acting as the pillars for the company, the new foods business is the growth area which assures it better margins. Tata Consumer has been launching new products mainly under these brands. 

 

During 2025-26 (Apr-Mar), Tata Sampann's top line grew 46% on year and crossed the INR 15 billion milestone, delivering 34% compounded annual growth over the past five financial years. The brand has built strong consumer affinity in trust-deficit categories like pulses, spices, cold-pressed oils and dry fruits and is evolving into a full-stack pantry platform with a long runway ahead, the company said in its annual report for FY26.

 

The ready-to-drink business registered 20% on-year volume growth during FY26 despite a weak summer and comparatively cooler temperatures throughout the year. Usually, cold and cool beverage sales increase when the mercury soars. 

 

In its annual report, Tata Consumer said it has significantly strengthened the ready-to-drink portfolio, building a full stack offering across three key pillars - hydration, energise, and recharge.

 

Chandrasekaran said the company would step up its innovation and research and development of new products in the current financial year. The new products under these brands, which are the growth engines for the company, largely depend on innovation. 

 

The top company official said that the Iran war and the resulting West Asia crisis has impacted the company in terms of increased cost pressures. At the same time, the crisis also hit exports potential in that region. 

 

Asked about the company's overview of earnings before interest, tax, depreciation, and amortisation margins, Chandrasekaran said, "Margin sequentially keeps improving. But in a tough year when there are issues, commodity prices increase, especially in categories where we have significant exposure like tea. Then it does impact the margin. And we are operating around 14?ITDA margin. The company will look at 17% and eventually the goal is to cross 20?ITDA margin."

 

At a time when most consumer goods companies are chasing premiumisation to improve margins and top line, Chandrasekaran said Tata Consumer would continue to focus on both mass market products and premium products alike.

 

"I think we (India) are both a mass market and a premium market. So, we have multiple customer segments and need to address the needs of all the customer segments. And so, we (Tata Consumer) will launch mass market products as well as premium products," he said. 

 

At the same time, like in the past, Tata Consumer will be on the lookout for new acquisitions to strengthen its portfolio this financial year as well, he said. 

 

For the March quarter, Tata Consumer reported around 18% on-year consolidated top line growth at over INR 54 billion and over a 21% on-year rise in bottom line at INR 4.2 billion. At 1509 IST, shares of the company were flat at INR 1,105.30 on the National Stock Exchange.  End

 

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

 

Edited by Avishek Dutta

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.