As geopolitical tensions, tariff changes and supply chain disruptions rattled global businesses through FY26, Tata Consumer Products says agility and resilience have become central to how it operates across markets.

Chairman N. Chandrasekaran, in the company’s annual report for FY26, said businesses are now operating in a “high-volatility, low visibility” environment where traditional forecasting models are constantly being tested.

“The global landscape has become increasingly fragmented,” Chandrasekaran said, pointing to heightened geopolitical sensitivity and rapid technological shifts. “We believe that to thrive in this current environment, an organisation needs to invest in resiliency and be nimble in reacting to situations.”

The comments come at a time when companies globally are recalibrating sourcing, logistics and pricing strategies amid changing tariff regimes, Red Sea shipping disruptions and persistent commodity volatility.

Despite the uncertain backdrop, Tata Consumer crossed the ₹20,000 crore revenue milestone in FY26, with consolidated revenues growing 15% year-on-year. EBITDA rose to ₹2,815 crore with margins at 13.9%, while group net profit stood at ₹1,547 crore. The company ended the year with a net cash position of ₹2,978 crore.

Chandrasekaran said growth was broad-based across India, international and non-branded businesses, helped by the company’s diversified portfolio. Growth businesses now contribute 31% of Tata Consumer’s India portfolio.

Tariffs and shipping disruptions reshape strategy

Managing director and CEO Sunil D’Souza said FY26 tested the company’s “agility and discipline in equal measure”.

“Shifting tariff regimes and heightened macro-uncertainty challenged traditional supply chains, demanding real-time calibration of our supply chains, cost structures and go-to-market strategies,” D’Souza said in the report.

The company also had to contend with sharp swings in tea and coffee prices during the year. Tea inflation in the first half and rising coffee costs in the US business pressured margins, prompting Tata Consumer to recalibrate sourcing, pricing and blending strategies.

D’Souza said the company expanded its vendor base, optimised blends and used advanced forecasting tools during periods of elevated tea prices to protect margins. As commodity prices eased later in the year, the company passed on benefits to consumers.

Global disruptions also affected some of its newer businesses. The company said growth at Capital Foods, which owns brands such as Ching’s Secret and Smith & Jones, was impacted by shifting export tariff regimes and disruption in the Middle East that affected global shipping towards the end of the year.

In response, Tata Consumer said it recalibrated its go-to-market architecture with sharper distributor and frontline alignment to improve execution and accelerate growth.

Betting on diversification and digital channels

Even as global uncertainty persists, Tata Consumer is leaning on diversification, premiumisation and digital commerce to drive growth.

According to Chandrasekaran, India remains a relatively strong consumption story, supported by demographic trends, digital infrastructure and rising disposable incomes. Measures such as income tax cuts, easing inflation and continued government investments have strengthened macroeconomic stability. He pointed to irreversible consumer shifts towards premiumisation, health and wellness, and digital-native consumption.

The company’s growth portfolio grew 24% during the year. Packaged foods brand Tata Sampann grew 46% and crossed the ₹1,500 crore revenue milestone, while the ready-to-drink business posted 20% volume growth despite rising competition.

Tata Consumer also continued to deepen its presence in newer channels. Alternate channels now contribute 41% of its India business, while e-commerce and quick commerce together contributed 19% of revenue and grew 62% during FY26.

D’Souza said the company continued to hold leadership in quick commerce with a 38% market share.

The company is also increasingly using AI and analytics to improve execution. Chandrasekaran said Tata Consumer has deployed AI models to capture micro trends, compress product development cycles and improve frontline productivity. It is also piloting “Saathi”, a voice-enabled AI companion for field teams.

Looking ahead, both Chandrasekaran and D’Souza signalled that volatility is unlikely to ease anytime soon, but said the company’s diversified portfolio and stronger balance sheet leave it better positioned to absorb shocks.

“As we enter FY2027, the fundamentals that support our growth trajectory remain strong,” D’Souza said, while cautioning that the company would need to remain “resilient and agile” in responding to macroeconomic shifts.