Tata Consumer Products Ltd. has signalled further price hikes across its portfolio if rising commodity costs, geopolitical tensions in West Asia or an El Niño-led disruption to crop output intensify, as the FMCG major moves to safeguard profitability while staying on course to expand margins this fiscal.
Speaking after the company’s first-quarter results, Managing Director and CEO Sunil D’Souza said the company would continue passing on higher input costs to consumers whenever necessary. He noted that volatility in key commodities, particularly tea and pulses, remains a key concern.
“If sowing of crops such as pulses is affected because of El Niño and commodity prices rise, we will increase prices of our branded pulses. Tea prices have already been impacted by a delayed and erratic monsoon, with inflation currently at 7-10%. If tea prices rise further, we will pass on the increase to consumers to protect margins,” D’Souza said.
The company has already implemented price increases in its tea portfolio and will assess market conditions over the next few weeks before deciding on any additional hikes.
Despite inflationary pressures, Tata Consumer expects operating margins to improve by 50-70 basis points during FY27, supported by the full impact of recent price revisions as well as ongoing cost optimization and productivity initiatives.
For the quarter ended June 2026, the maker of Tata Tea and Tata Salt reported a 14% year-on-year rise in standalone revenue from operations to ₹4,028.32 crore, while standalone net profit remained broadly flat at ₹714.27 crore. The company said margins in its India business came under pressure due to higher raw material costs.
On a consolidated basis, revenue grew 11.9% to ₹5,348.88 crore, while net profit rose 28.4% to ₹444.86 crore.
Growth remained broad-based across businesses. The domestic branded business recorded 13% underlying volume growth, while the international business grew 16% year-on-year, or 3% in constant currency terms. The Tata Starbucks joint venture posted an 11% increase in revenue, taking its store network to 498 outlets.
Among key categories, Tata Sampann emerged as a standout performer with 58% revenue growth, while the ready-to-drink beverages business registered a robust 41% increase in sales, reflecting strong consumer demand across emerging food and beverage segments.