Tata Consumer Products Ltd (TCPL) expects to maintain double-digit revenue growth in FY27, driven by healthy consumer demand, strong volume-led expansion and continued momentum from its fast-growing food and beverage businesses. According to MD & CEO Sunil D'Souza, the company reported a 12% rise in revenue, 19% growth in EBITDA and 29% increase in net profit in the June quarter. As reported by PTI, D'Souza emphasized that the better part of the growth is volume-led across categories, indicating underlying consumer demand.
TCPL's growth businesses, comprising Tata Sampann, Capital Foods, Organic India, Soulfull and ready-to-drink beverages, grew around 47% in the June quarter and now contribute nearly 30% of the India business. According to D'Souza, the company has been over-delivering on this growth pace for at least two to three quarters and expects to continue at this rate. He projected these faster-growing businesses could reach 45% of the India business within the next three to four years, benefiting from consumer trends including health and wellness, convenience and digital commerce.
Despite pressure from higher tea, coffee, edible oil, packaging and fuel costs, TCPL has so far avoided broad-based price increases. As reported by PTI, higher packaging and fuel costs alone had an impact of around 50 basis points on the business last quarter. D'Souza indicated that the company may take 'calibrated price' hikes across select categories if elevated commodity, packaging and energy costs persist. For salt, TCPL has already increased prices by ₹2 per pack, taking the price from ₹30 to ₹32, largely due to higher imported coal costs, energy expenses and currency fluctuations.
On competition from regional and local brands, D'Souza said such competition is a reality across most FMCG categories, but TCPL's strategy is to remain competitive on pricing while differentiating through product quality and distribution reach. According to him, the company continuously calibrates prices to ensure that its branded offerings remain competitive against local players. In tea, TCPL passes on the benefits of lower commodity prices to consumers to protect market share while maintaining its targeted margin band.
Looking ahead, D'Souza identified persistently high petroleum prices as the biggest risk to the ongoing recovery in consumer demand. As reported by PTI, he said the only spoiler on the horizon is if petroleum prices remain at elevated levels and the company is not able to offset them. However, he expressed confidence that growth will continue in the market otherwise. The company remains confident of sustaining double-digit topline growth while improving profitability through premiumisation, innovation and scale benefits.
