Tata Consumer Products Ltd is implementing a comprehensive strategy to improve its Ebitda margin from the current 13.9% to 17% within three years, according to group chief financial officer Ashish Goenka. As reported by Mint, this represents an expansion of 70 to 100 basis points annually to match industry leaders. The company posted a 15% increase in revenue to ₹20,290 crore in fiscal year 2026 (FY26), though its Ebitda margin continues to lag behind rivals in the fast-moving consumer goods sector.
The company's margin improvement strategy comes as it faces competitive pressure from industry leaders. According to Mint reports, Hindustan Unilever Ltd reported an Ebitda margin of 23.6% while Nestle India reported a 23% margin in FY26, significantly higher than Tata Consumer's current performance. Goenka emphasized the company's commitment to staying ahead of the curve in both channel strategy and overall portfolio approach.
Tata Consumer has significantly expanded its distribution infrastructure to support growth initiatives. As reported by Mint, the company onboarded 189 new distributors and transitioned 356 existing distributors to the new go-to-market model in FY26. The company reworked its general trade structure in its top 100 cities, which contribute about 30% of business, focusing on growth businesses in markets dominated by salt and tea. General trade, which forms 60% of the company's business, was reorganized to ensure more focus on growth segments.
The company is capitalizing on the rapid growth of quick commerce channels, which grew 62% in FY26 and now represent 19% of India branded business, up from less than 5% a few years ago. According to Mint reports, Goenka noted that "everything is just quick comm—there is no more e-comm" as companies focus on this high-growth avenue. The company's growth businesses including ready-to-drink beverages, Tata Sampann, Capital Foods and Organic India crossed the ₹4,000 crore revenue milestone in FY26 with 24% growth.
Recent acquisitions have opened new market opportunities for Tata Consumer. In 2024, the company acquired Capital Foods, owner of Ching's Secret and Smith & Jones, which gave access to a condiments portfolio and helped reach the food services segment with annualized revenue of ₹170 crore in Q4 FY26. Additionally, the Organic India acquisition enabled entry into the pharmacy segment with ₹30 crore annualized revenue in Q4. As reported by Mint, Goenka noted that "there are 200,000 pharmacies in the country, but we were not present because we never had the portfolio," with the company now reaching 30,000+ pharmacies through FMCG distributors who also handle pharma products.
