Tata Consumer expects double-digit revenue growth, margin expansion in second half of FY27

Tata Consumer Products expects to deliver strong double-digit revenue growth and further margin expansion in the second half of the financial year, supported by its tea business, growth portfolio, recent acquisitions and new product launches, according to Sunil D'Souza, Managing Director & CEO of Tata Consumer Products.

Speaking after the company's July-September 2026 quarter results, D'Souza said multiple businesses are performing well and the company is entering the second half with confidence. He also indicated that Tata Consumer's revenue could remain close to the ₹22,500-23,000 crore range estimated by analysts while maintaining its margin expansion guidance.

Tea business to support H2 growth

D'Souza said the tea business is expected to return to volume-led growth after price increases implemented earlier this year.

This Mumbai-based fast-moving consumer goods (FMCG) company expects low-digit to mid-single-digit volume growth in tea during the second half, while earlier price hikes continue to flow through to revenue and profitability.

He added that Tata Consumer has retained market share despite raising prices and has expanded its premium portfolio through launches such as Chakra Select, Kannan Devan Gold and Gold Reserve.

Tata Consumer shares were trading at ₹981.75 as of 11:12 am on the NSE. The company, which has a current market capitalisation of ₹97,133.91 crore, has seen its shares decline more than 16% over the last year.

Growth portfolio to expand with new categories

D'Souza said the company's growth portfolio, which expanded 47% in the July-September 2026 quarter, will continue to grow at more than 30% over time.

The recent acceleration was driven by dry fruits and cold-pressed oils, while the core portfolio—including pulses, poha and makhana—continues to grow at around 30%.

Tata Consumer plans to enter functional foods and nutraceuticals, further expanding its higher-growth categories.

He also revealed that the company will soon launch protein water, after completing quality checks.

Capital Foods, Organic India maintain growth trajectory

The company remains confident that Capital Foods and Organic India will continue delivering 25-30% growth, after reporting 24% growth in India during the previous quarter.

D'Souza said temporary disruptions in international shipments affected overseas performance but expects operations to normalise from the current quarter.

Acquisition pipeline remains active

D'Souza said Tata Consumer continues to evaluate opportunities, in terms of future acquisitions, particularly in the health, wellness and functional foods segment.

The company currently holds around ₹1,800 crore in cash, providing flexibility for inorganic expansion.

"We've always maintained we'll grow organically and inorganically," he said.

While there are no immediate acquisition announcements, D'Souza said the company would pursue opportunities that complement its portfolio and create long-term value.

The company also reiterated its target of generating 5% of sales from innovation, after launching 22 new products in 12 weeks.

For the full interview, watch the accompanying video



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