Tata Consumer Products Earnings Call for Q1FY27
Conference Call with Tata Consumer Products Management and Analysts on Q1FY27 Earnings Performance and Outlook.
Managing Director & CEO, Tata Consumer Products
Search every verified Sunil D'souza interview, podcast appearance, and on-the-record quote — each transcript cross-checked by AI and human review to confirm speaker identity. Sunil D'Souza, Managing Director and CEO of Tata Consumer Products, stated during the company’s Q1 FY27 earnings call that growth businesses grew 47% year-on-year and scaled to 36% of the portfolio, describing it as the best-ever quarter for those businesses. He said that 25 to 30% growth should be the new normal going forward. On tea procurement, D'Souza noted he has stopped trying to forecast tea prices, observing 7 to 10% inflation in the category and a good crop in Assam, with inflation more pronounced at the bottom end of the portfolio. At the company’s 63rd Annual General Meeting, D'Souza outlined medium-term margin targets, stating the company will look at 17% EBITDA margin and eventually aim to cross 20%, with an improvement of 50 to 100 basis points per year. He also noted the dividend policy is to provide 50 to 75% of profit after tax, with the company paying 60% on a standalone basis and 62% on a consolidated basis. In a podcast interview, D'Souza said that in FMCG, "the real cola wars are fought on the street" and that availability is key for impulse products. He also stated a preference for team players over superstars, saying "I would rather have 10 ordinary people rather than have one superstar" because business is about creating a lasting team.
“growth businesses grew 47% year on year and scaled to 36%. In terms of growth, I think this was the best ever quarter for the growth businesses for TCPL.”
“The answer to that question is 25 to 30% should be the new normal going forward.”
“The company in medium-term will look at 17% and eventually the goal is to cross 20% EBITDA margin and there has to be an improvement of 50 to 100 bits in a good year 100 bits in another years 50 bips at least that's the margin trajectory the company is focused on.”
“The dividend policy is to provide 50 to 75% of PAT and this year the company has provided 60% on a standalone basis and 62% on the consolidated basis as dividend and it is a very very healthy dividend that the company is providing.”
“The real cola wars are not fought on television or on the screen. The real cola wars are fought on the street. Because really is one thing, it's an impulse product. So if you walk into a store, walk into a restaurant, sit down and ask for a Coke and the person says there's no Coke, there's Pepsi. Most consumers are ind...”
“I would rather have 10 ordinary people rather than have one superstar because ultimately business is not about one person. Business is about creating a team which is lasting and can deliver in the longer term. That superstar the minute the superstar is gone it could fall apart. So I would rather take team players and b...”
“50 to 75 80 bps is a given. I mean, there's there it's not an option. We will deliver it, number one. Uh number two, uh just a rider uh saying that we've got seasonality in our businesses, so it'll be quarter to quarter. So, it's not that it's automatically jumping up to the 50 to 100 for the full year number straight...”
“On the acquisitions front we remain open but right now let me say what we like is not for sale. What is for sale we don't like, right? So from that perspective if and when something comes along which we think will be attractive we will look at it. So we've never said no.”
“We've seen some increases in packaging costs, etc. Number one. Number two, we've seen some increases because of places where we use LPG. Now, the good and bad part of our portfolio, I think we've got a fairly balanced portfolio of I would say slightly stronger commodities and a piece of highly processed food. So far, w...”
“On the acquisitions front, we remain open, but right now, let me say what we like is not for sale, what is for sale, we don't like, right? So, from that perspective, if and when something comes along which we think will be attractive, we will look at it. So, we've never said no.”
“The single biggest legacy that we have and what we are going to pass on is the four letters T A T A, right? And that is denotes trust. So, whatever we do, trust is paramount.”
“India is one of the biggest agricultural producers, but not all of that we are able to translate. So, the entire food supply chain has to start streamlining. Whether it is cold storages, whether it is preservation of food, setting up different infrastructure for manufacture. I think that is one of the big challenge.”
“This was a landmark quarter for us having crossed the 5,000 cr in a quarter. Year to date close to 15,000 crores growing at 14% with all businesses delivering double digit revenue growth.”
“Tata Consumer I would say is an entrepreneurial company. As we see opportunities, we jump in. It's not that it's not in our budget, so we'll execute next year. That doesn't happen here. So if we see opportunity, we will drive it.”
“I wouldn't comment on media speculation. So there are specialized nutritional products in Danon and not just dairy. So probably maybe some part of that business he'll he'll pick and choose on his plate.”
Conference Call with Tata Consumer Products Management and Analysts on Q1FY27 Earnings Performance and Outlook.
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Address by Mr. Sunil A. D’Souza, MD & CEO, Tata Consumer Products Ltd., during the Inaugural Session of IITC 2025 on 19th September 2025 at Grand Hyatt Kochi Bolgatty, Kerala, India.
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