Tata Consumer Products Ltd (NSE: TATACONSUM) Q3 2026 Earnings Call dated Jan. 27, 2026
Corporate Participants:
Nidhi Verma — Head of Investor Relations and Corporate Communications
Sunil D’Souza — Managing Director and Chief Executive Officer
Ashish Goenka — Chief Financial Officer
Analysts:
Abneesh Roy — Analyst
Tejas Shah — Analyst
Mihir Shah — Analyst
Nihal Mahesh Jham — Analyst
Percy Panthaki — Analyst
Sheela Rathi — Analyst
Anurag Dayal — Analyst
Siddharth Negandhi — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Tata Consumer Products Q3 FY26 Earnings Conference Call. As a reminder, all participant lines will be in the lesson only mode and there will be an opportunity for you to ask questions after the presentation concludes. [Operator Instructions] Please note that this conference is being recorded.I now hand the conference over to Ms. Nidhi Verma, Head Investor Relations and Corporate Communications. Thank you and over to you.
Nidhi Verma — Head of Investor Relations and Corporate Communications
Thank you so much, and welcome everyone to the Q3 FY26 results for Tata Consumer. As we usually do, we’ll first walk through the key highlights of the quarter for the first 10 to 15 minutes, and then we’ll open the floor for Q&A. Today, I’m joined in the room by Mr. Sunil D’Souza, Managing Director and CEO; Mr. Ashish Goenka, Group CFO; Mr. Ajit Krishnakumar, Executive Director and COO. I’ll just draw your attention to the disclaimer statement which is on your screen.
With that, I’ll hand it over to Sunil.
Sunil D’Souza — Managing Director and Chief Executive Officer
Yeah, thanks, Nidhi. So, if I were to summarize, we’ve had a decent quarter, where we had a 15% revenue growth. India branded business posted underlying volume growth of 15%. India tea up 3%, as the tea prices have come down, we’ve started passing on pricing back to consumers. Overall, YTD, we are growing at 9%. Just to put it in perspective, we’ve always guided for a mid-to-high single-digit growth for the tea business.
Salt had a, I would say, strong quarter, 14% revenue and 15% volume, as we did targeted actions on consumer price and trade promotions, coupled with A&P in specific geographies. Yeah, so we saw strong results there. Growth businesses, which we’ve always guided for being 30% of our business — growing at 30%. We were quite in the ballpark, growing 29%, and contributing 30% to our revenue surpassing INR1,000 crores in quarterly revenue. Tata Sampann had a strong quarter: 45% growth, all volume-driven. RTD delivered strong performance, 26%, again, all volume-driven.
Capital Foods and Organic India together grew 15%. Organic India was in the 30s, and Capital Foods India grew sequentially month-on-month. We were impacted a bit by the US tariffs, because 20% of Capital Foods is international. International business maintained a strong trajectory, 11% constant currency revenue growth, primarily led by coffee — US coffee, which had strong volume growth as well. Non-branded business up 20%, with profitability remaining healthy, but margins coming back to normative levels as coffee prices have stabilized, albeit at a higher level. Consolidated EBITDA up 26%. So, EBITDA has grown roughly 2x of revenue. Margins expanded 60 bps quarter-on-quarter, 120 bps year-on-year to 14.2%.
Our innovation pipeline remains strong, with 15 new product launches through the year. Innovation to sales is roughly 4.8%, almost close to our target of 5%. Yeah, so INR1,600 crores of India beverages with a growth of 7%. Foods, similar number, growing at 19%. International, INR1,300 crores growing at 18%, and non-branded growing 23%, total INR5,000 — this was a landmark quarter for us, having crossed the INR5,000 crore in a quarter number. Year to date, close to INR15,000 crores, growing at 14%, with all businesses delivering double-digit revenue growth.
Yeah, INR5,112 crores top line, growing 15%, INR728 crores of EBITDA, 14.2 percentage points. PBT up by 11% to INR563 crores. Before exceptional net profit of INR399 crores, which is up by 130 bps versus last year, and we’re now sitting with INR1,272 crores of cash. Nine months, almost INR15,000 crore, growing at 14%. Group net profit before exceptionals, growing at 17% to INR1,137 crores, and yeah, INR1,272 crores of cash.
Yeah, so starting with the India business, we maintained our A&P close to the 7%, 6.8% to be precise. Salt market share, we had volume growth. On top of that, we had market share growth as well of 40 bps. Market share of tea, as I’ve mentioned, this only tracks about 57% to 60% of our business, down 70 basis points.
Next slide. I had talked last quarter about our pilots on go-to-market. Just to repeat, a lot of the salt strong geographies were also the geographies where our new growth businesses were supposed to be strong. And therefore, to provide the requisite focus, we have three types of pilots. We had three types of pilots running. A separate salt distributor in Salt geographies where salt contribution was very high, and a non-salt distributor in geographies, where salt plus tea was very high. Salt alone was not, salt plus tea was very high. We separated into core and growth. And there are points — cities where smaller outlets, we’ve now got a common salesman going in, whereas for larger outlets, we’ve got separate split routes selling by category going in.
All the three pilots, more or less, were bang on the KPIs that we had budgeted for, and therefore, now we are rolling it out nationally. We are about 82% done on the national rollout. By first week of February, we’ll be 100% done. 270-odd distributors have been transitioned to the new go-to-market model, and we’ve added 160 more distributors. We’ve used AI to align routes and servicing norms. Also, dispatch plans, auto-replenishment systems have been aligned, and the sales hierarchy has also been realigned as needed. For example, if it’s the salt plus all non-salt, so the territory executives and area managers will handle only salt, and we consolidate at the region level.
So to give dedicated focus both from a supervisory level as well as from an execution level on the ground. This I already talked about: 29% contribution, growing at 29% — 29% growth, and growth businesses now account for 30% of our India business. New launches across health and wellness, convenience, and premiumization. We have launched matcha. We’ve launched RTD green tea and fruit tea, green tea, which includes L-Carnitine as well. Tata Copper now in glass. We’ve launched various formats of coffee and jelly and flavors in coffee. Soulfull, we’ve launched SlimCare.
In convenience, we’ve got ready mixes for Paneer Chilli, Schezwan, and Manchurian. We always had ginger garlic paste, but there is an opportunity for a separate ginger and garlic. And we’ve launched the high-end chili soy, light soy, which is primarily used in Southeast Asian/Japanese restaurants. Rock salt, we’ve taken it to the next level by launching a Himalayan version. Our ratings underscore our commitment to responsible business. We’ve upped the game on MSCI ratings, upped our score on S&P Global, and done decently on all the other ratings.
In macro terms, tea prices are coming down broadly to the 2024 levels. Albeit, in the last end — in the fag end of Q3, we did see a little bit of an uptick on tea prices, keeping a close watch on that. Coffee had started to come down, except after the Venezuela action, there was a bit of uptick on coffee. The forecast is that from the current about $370 to $390, it should start coming down, but your guess is as good as mine on coffee pricing. We remain agile and ready to take pricing as and when needed.
In packaged beverages, 3% volume translated to 3% net revenue for tea. Marginal movement in market share. Albeit, gross margins expanded handsomely out here as tea prices came back to normal. India foods, 19% net revenue growth, 16% volume. Salt up by 14% on revenue. Sampann 45%. Salt market share up by 40 basis points. Ready to drink, close to INR200 crore net revenue. Remember, Q3 is probably one of our lower quarters, and therefore we are well poised to recover strongly in the coming season. Revenue up 26%, primarily driven by volume up at 27%, and we’ve expanded the ready to drink tea and coffee aggressively in the meantime.
Capital Foods, Organic India, Capital Foods close to INR240 crore revenue. Organic India, INR120 crore, combined gross margins of close to 50%. Non-branded business revenue up 20%, soluble revenue up is 34%. Tata Starbucks, second successive quarter of same-store sales growth of 3%. Average daily traffic, which was the issue, is now more or less stabilized. It is — and ticket is holding. We opened 12 new stores during the quarter. We are now at 504. We opened our second reserve store in Gurgaon, and now we are present in 81 cities, with Jabalpur being the latest city to be opened.
UK flat on revenue. Market share on black close to 19%, and we continue to maintain 10% value market share, but very strong delivery on profitability in the UK. The US business, very strong revenue growth driven both by volume and by pricing at 31%. Market share slowly inching up both for K-Cups as well as coffee bags. In the US, coffee bags are growing roughly 4 times the growth rate of K-Cups. And given our strong share in bags, we remain quite confident to continue this growth, at least in the near term. Canada, as we took some aggressive pricing on tea, revenue has been sluggish. Growth in specialty has been heartening at 2%. And overall, more or less maintained our market share at 25%.
Ashish, over to you for financials.
Ashish Goenka — Chief Financial Officer
Thank you, Sunil. I think most of you would have seen the numbers, I’ll keep it very brief. Our consolidated revenue crossed the milestone of INR5,000 crores this quarter, growing at 15%. Growth was fairly broad-based with all three vectors of the business delivering double-digit growth, which is India, international, and non-branded. In terms of margin, we expanded our EBITDA margins by 120 basis points, sequentially by 60 basis points. EBIT margins expanded by 150 basis points this quarter. This was largely driven by the recovery in India margins and led by the moderation in tea prices and therefore recovery in the tea margins. International margins continue to remain impacted by the US coffee, albeit, some of the pricing interventions that we have taken in the last quarter have improved the margin profile, but the gap remains. On non-branded, there was again a contraction in the margin, largely on account of the fact that in the base, we had some inventory gains and fair valuation gains, which of course are not repeating, but margins have come to more normative levels right now.
On a nine-month basis, very quickly, top line and consolidated basis growing at 14% and the line 13. Of course, at a YTD level, our EBITDA margins have contracted by 80 basis points because of the impact that we had both on tea and coffee in the first half. Overall financials, as Sunil said, top line growing at 15%, EBITDA growing at 26%, and PAT growing at 34%. In terms of exceptional item, we had three this quarter. We had a one-time gain on a sale of property, which was offset by a one-time charge that we took on some of the impairment of assets because of the transformation that is happening in our coffee factory in the US.
We also did a one-time catch-up as a consequence to the labor courts, which were announced recently. The gratuity catch-up and the leave encashment catch-up was about INR23 crores, which is what you see in the exceptional line. With that, the PAT growth was about 34%. I think I’ll not spend time on the standalone and the segment performance. Maybe we can jump to the Q&A straight away. Happy to take questions.
Questions and Answers:
Operator
Thank you very much. [Operator Instructions] We’ll take a first question from the line of Abneesh Roy from Nuvama. Please go ahead.
Abneesh Roy
Yeah, thanks. Congrats on strong performance. My first question is on Tata Soulfull and Tata Sampann. So Tata Soulfull, I wanted to understand how is the market share in the past two years? This is a great, exciting market on paper, but reasonably challenging because there is one strong multinational company and then there is a long tail of a lot of new companies. Some of the existing companies have also entered. So what is the right to win here? How are you able to differentiate? So if you could discuss Tata Soulfull? On Tata Sampann, very strong numbers, 45% growth, largely essentially volume-led, so if you could tell us here, how have the legacy business done and how have the new businesses like the cashew, nuts, etc., those have done? So we can get a sense of where is the growth coming from, any one of their given 45% growth?
Sunil D’Souza
So Abneesh, let me take your second question first. The Sampann growth is broad-based. So the base businesses of Poha, Pulses, Makai, all of them are firing on all cylinders, percentage growth-wise. So let me say it has come from the new businesses as well as from the legacy businesses, right? The best part is my dry fruits business is now close to a INR250 crore, INR300 crore annual run rate. Cold-pressed oils is again in the similar ballpark. All of these have been launched in the last 18 months to 24 months, right? So, differentiated product, very specifically entering trust deficit categories, very, very clear winners.
In fact, the good part is this is just the base foundation because the ultimate idea in dry fruits is we will play the whole spectrum. Now that we know the sourcing, we know the time of the year, when to source, which channels, what are the packs which work, what are the dry fruits which work. Now, when we enter the flavored, roasted, salted, that is where we will move up the value ladder. So that’s a good part. Similarly, in cold-pressed oils, I think we’re off to a great start because normally we would list on e-commerce, then go to, I would say, SAMTs, then GT, and then Modern Trade. This time we’ve had pull from Modern Trade pulling us into the outlet even before we went to GT or SAMT. So that’s how powerful the propositions are.
So we remain bullish on Sampann. But again, I’ll go back to our guidance is for roughly 30% growth, and we will remain guided by that. That’s number one. On Soulfull, we are close to a double-digit market share in most categories, which we operate. We don’t track for all the categories in which we operate, but mostly close to a double-digit number. The big numbers for us are in the Choco Fills as well as the muesli segment, which is growing very fast. But here’s the thing. In Soulfull, it is not one particular category that we are playing at. If you look at it, we have expanded to different categories and therefore expanded TAM, and therefore we are not playing in the small pond. Given the fact that we are playing in rusks, we are playing in Choco Sticks, we are playing in muesli, we are playing in breakfast cereals as well. So it’s a wide-ranging thing.
Broadly, let me say we are decently satisfied, but we do think we can take Soulfull to the next level. And I wouldn’t worry about one incumbent versus all startups, etc. Everyone can carve out their own space. I think with the plans that we have, we remain quite confident.
Ashish Goenka
So thanks. Two follow-ups to my first question. So one is you said 30% is a more normal number to look at from a growth perspective for Sunpann, but growth was 45%. So there’s no one-off. You could clarify on that. Second is on the margins for dry fruits and say for Soulful. Any color you can give from an outlook perspective, when do you see that normalizing versus the overall non-core portfolio, X of the salt and say your tea business, when do the margins for these two subsegments normalize versus the non-core versus the non-legacy?
Sunil D’Souza
So let me put it this way. There is no one-off in Sunpann this quarter. I’m just trying to temper expectations on the number that we might not always hit a six. Sometimes it will also be a four, right? So from that perspective, I think 30 is a realistic number for us to keep targeting. While we know we can drive 45 and we’ll continue to drive for that. On the margin perspective, I will always say when Sampann, we were close to double-digit margins. The good news is we have hit double-digit. We remain confident of edging up the total business to close to a 15 sort of number in the medium-term — near- to medium-term. And that’s what. So while we are growing top line, the good news is we are constantly improving the margin profile as well.
Going forward, the margin profile will only get better. As like I said, in dry fruits, the money is — the margins are in the roasted, salted, flavored ones. But for you to get there, you need to know how to play the base game because then you add the value additions on top of that.
Abneesh Roy
Thanks. Last question. Salt, which is generally very highly penetrated, last two quarters have seen super volume growth. I do understand you did mention on the gramage addition, the trade incentive and promotions. But on a full year basis, does it normalize? Because initially customer will buy more, but he will not consume more salt anyway given it has a health kind of a question mark. So would you say that next two quarters this could start normalizing to a much more modest number, or you see that market share gains will continue?
Sunil D’Souza
So Abneesh, we’ve always guided for salt being again in the mid-to-high single-digit growth on revenue, volume being about 4 to 5 and rest being value price mix movements. Just to give you a perspective, I think the top six brands are probably 56%, 57% market share in this category. The balance 44 is a long tail of what I call no-name brands. So the scope for growth is enormous. It’s not necessarily driven by per capita consumption. It is driven more by market share and improved penetration of Tata Salt, not necessarily salt, right? We’re replacing other brands in the household. Som I mean, the market size could be 2x of what it is if you just extrapolate from that perspective. But mid- to longer-term, we have maintained that it will be mid-to-high single digits.
Abneesh Roy
So thanks. That’s all from my side. Thank you.
Operator
[Operator Instructions] We’ll take the next question from the line of Tejas Shah from Avendus Spark. Please go ahead.
Tejas Shah
Congrats on good set of numbers. Sir, first question is, is the strong momentum that we are witnessing, is it the broader consumption recovery or largely led by our own execution or mix of execution and base effect? And how do you see this sustaining over coming quarters?
Operator
Thank you very much. [Operator Instructions] We’ll take a first question from the line of Abneesh Roy from Nuvama. Please go ahead.
Abneesh Roy
Yeah, thanks. Congrats on strong performance. My first question is on Tata Soulfull and Tata Sampann. So Tata Soulfull, I wanted to understand how is the market share in the past two years? This is a great, exciting market on paper, but reasonably challenging because there is one strong multinational company and then there is a long tail of a lot of new companies. Some of the existing companies have also entered. So what is the right to win here? How are you able to differentiate? So if you could discuss Tata Soulfull? On Tata Sampann, very strong numbers, 45% growth, largely essentially volume-led, so if you could tell us here, how have the legacy business done and how have the new businesses like the cashew, nuts, etc., those have done? So we can get a sense of where is the growth coming from, any one of their given 45% growth?
Sunil D’Souza
So Abneesh, let me take your second question first. The Sampann growth is broad-based. So the base businesses of Poha, Pulses, Makai, all of them are firing on all cylinders, percentage growth-wise. So let me say it has come from the new businesses as well as from the legacy businesses, right? The best part is my dry fruits business is now close to a INR250 crore, INR300 crore annual run rate. Cold-pressed oils is again in the similar ballpark. All of these have been launched in the last 18 months to 24 months, right? So, differentiated product, very specifically entering trust deficit categories, very, very clear winners.
In fact, the good part is this is just the base foundation because the ultimate idea in dry fruits is we will play the whole spectrum. Now that we know the sourcing, we know the time of the year, when to source, which channels, what are the packs which work, what are the dry fruits which work. Now, when we enter the flavored, roasted, salted, that is where we will move up the value ladder. So that’s a good part. Similarly, in cold-pressed oils, I think we’re off to a great start because normally we would list on e-commerce, then go to, I would say, SAMTs, then GT, and then Modern Trade. This time we’ve had pull from Modern Trade pulling us into the outlet even before we went to GT or SAMT. So that’s how powerful the propositions are.
So we remain bullish on Sampann. But again, I’ll go back to our guidance is for roughly 30% growth, and we will remain guided by that. That’s number one. On Soulfull, we are close to a double-digit market share in most categories, which we operate. We don’t track for all the categories in which we operate, but mostly close to a double-digit number. The big numbers for us are in the Choco Fills as well as the muesli segment, which is growing very fast. But here’s the thing. In Soulfull, it is not one particular category that we are playing at. If you look at it, we have expanded to different categories and therefore expanded TAM, and therefore we are not playing in the small pond. Given the fact that we are playing in rusks, we are playing in Choco Sticks, we are playing in muesli, we are playing in breakfast cereals as well. So it’s a wide-ranging thing.
Broadly, let me say we are decently satisfied, but we do think we can take Soulfull to the next level. And I wouldn’t worry about one incumbent versus all startups, etc. Everyone can carve out their own space. I think with the plans that we have, we remain quite confident.
Ashish Goenka
So thanks. Two follow-ups to my first question. So one is you said 30% is a more normal number to look at from a growth perspective for Sunpann, but growth was 45%. So there’s no one-off. You could clarify on that. Second is on the margins for dry fruits and say for Soulful. Any color you can give from an outlook perspective, when do you see that normalizing versus the overall non-core portfolio, X of the salt and say your tea business, when do the margins for these two subsegments normalize versus the non-core versus the non-legacy?
Sunil D’Souza
So let me put it this way. There is no one-off in Sunpann this quarter. I’m just trying to temper expectations on the number that we might not always hit a six. Sometimes it will also be a four, right? So from that perspective, I think 30 is a realistic number for us to keep targeting. While we know we can drive 45 and we’ll continue to drive for that. On the margin perspective, I will always say when Sampann, we were close to double-digit margins. The good news is we have hit double-digit. We remain confident of edging up the total business to close to a 15 sort of number in the medium-term — near- to medium-term. And that’s what. So while we are growing top line, the good news is we are constantly improving the margin profile as well.
Going forward, the margin profile will only get better. As like I said, in dry fruits, the money is — the margins are in the roasted, salted, flavored ones. But for you to get there, you need to know how to play the base game because then you add the value additions on top of that.
Abneesh Roy
Thanks. Last question. Salt, which is generally very highly penetrated, last two quarters have seen super volume growth. I do understand you did mention on the gramage addition, the trade incentive and promotions. But on a full year basis, does it normalize? Because initially customer will buy more, but he will not consume more salt anyway given it has a health kind of a question mark. So would you say that next two quarters this could start normalizing to a much more modest number, or you see that market share gains will continue?
Sunil D’Souza
So Abneesh, we’ve always guided for salt being again in the mid-to-high single-digit growth on revenue, volume being about 4 to 5 and rest being value price mix movements. Just to give you a perspective, I think the top six brands are probably 56%, 57% market share in this category. The balance 44 is a long tail of what I call no-name brands. So the scope for growth is enormous. It’s not necessarily driven by per capita consumption. It is driven more by market share and improved penetration of Tata Salt, not necessarily salt, right? We’re replacing other brands in the household. Som I mean, the market size could be 2x of what it is if you just extrapolate from that perspective. But mid- to longer-term, we have maintained that it will be mid-to-high single digits.
Abneesh Roy
So thanks. That’s all from my side. Thank you.
Operator
[Operator Instructions] We’ll take the next question from the line of Tejas Shah from Avendus Spark. Please go ahead.
Tejas Shah
Congrats on good set of numbers. Sir, first question is, is the strong momentum that we are witnessing, is it the broader consumption recovery or largely led by our own execution or mix of execution and base effect? And how do you see this sustaining over coming quarters?
Operator
Ladies and gentlemen, good day and welcome to Tata Consumer Products Q3 FY26 Earnings Conference Call. As a reminder, all participant lines will be in the lesson only mode and there will be an opportunity for you to ask questions after the presentation concludes. [Operator Instructions] Please note that this conference is being recorded.I now hand the conference over to Ms. Nidhi Verma, Head Investor Relations and Corporate Communications. Thank you and over to you.
Nidhi Verma
Thank you so much, and welcome everyone to the Q3 FY26 results for Tata Consumer. As we usually do, we’ll first walk through the key highlights of the quarter for the first 10 to 15 minutes, and then we’ll open the floor for Q&A. Today, I’m joined in the room by Mr. Sunil D’Souza, Managing Director and CEO; Mr. Ashish Goenka, Group CFO; Mr. Ajit Krishnakumar, Executive Director and COO. I’ll just draw your attention to the disclaimer statement which is on your screen.
With that, I’ll hand it over to Sunil.
Sunil D’Souza
Yeah, thanks, Nidhi. So, if I were to summarize, we’ve had a decent quarter, where we had a 15% revenue growth. India branded business posted underlying volume growth of 15%. India tea up 3%, as the tea prices have come down, we’ve started passing on pricing back to consumers. Overall, YTD, we are growing at 9%. Just to put it in perspective, we’ve always guided for a mid-to-high single-digit growth for the tea business.
Salt had a, I would say, strong quarter, 14% revenue and 15% volume, as we did targeted actions on consumer price and trade promotions, coupled with A&P in specific geographies. Yeah, so we saw strong results there. Growth businesses, which we’ve always guided for being 30% of our business — growing at 30%. We were quite in the ballpark, growing 29%, and contributing 30% to our revenue surpassing INR1,000 crores in quarterly revenue. Tata Sampann had a strong quarter: 45% growth, all volume-driven. RTD delivered strong performance, 26%, again, all volume-driven.
Capital Foods and Organic India together grew 15%. Organic India was in the 30s, and Capital Foods India grew sequentially month-on-month. We were impacted a bit by the US tariffs, because 20% of Capital Foods is international. International business maintained a strong trajectory, 11% constant currency revenue growth, primarily led by coffee — US coffee, which had strong volume growth as well. Non-branded business up 20%, with profitability remaining healthy, but margins coming back to normative levels as coffee prices have stabilized, albeit at a higher level. Consolidated EBITDA up 26%. So, EBITDA has grown roughly 2x of revenue. Margins expanded 60 bps quarter-on-quarter, 120 bps year-on-year to 14.2%.
Our innovation pipeline remains strong, with 15 new product launches through the year. Innovation to sales is roughly 4.8%, almost close to our target of 5%. Yeah, so INR1,600 crores of India beverages with a growth of 7%. Foods, similar number, growing at 19%. International, INR1,300 crores growing at 18%, and non-branded growing 23%, total INR5,000 — this was a landmark quarter for us, having crossed the INR5,000 crore in a quarter number. Year to date, close to INR15,000 crores, growing at 14%, with all businesses delivering double-digit revenue growth.
Yeah, INR5,112 crores top line, growing 15%, INR728 crores of EBITDA, 14.2 percentage points. PBT up by 11% to INR563 crores. Before exceptional net profit of INR399 crores, which is up by 130 bps versus last year, and we’re now sitting with INR1,272 crores of cash. Nine months, almost INR15,000 crore, growing at 14%. Group net profit before exceptionals, growing at 17% to INR1,137 crores, and yeah, INR1,272 crores of cash.
Yeah, so starting with the India business, we maintained our A&P close to the 7%, 6.8% to be precise. Salt market share, we had volume growth. On top of that, we had market share growth as well of 40 bps. Market share of tea, as I’ve mentioned, this only tracks about 57% to 60% of our business, down 70 basis points.
Next slide. I had talked last quarter about our pilots on go-to-market. Just to repeat, a lot of the salt strong geographies were also the geographies where our new growth businesses were supposed to be strong. And therefore, to provide the requisite focus, we have three types of pilots. We had three types of pilots running. A separate salt distributor in Salt geographies where salt contribution was very high, and a non-salt distributor in geographies, where salt plus tea was very high. Salt alone was not, salt plus tea was very high. We separated into core and growth. And there are points — cities where smaller outlets, we’ve now got a common salesman going in, whereas for larger outlets, we’ve got separate split routes selling by category going in.
All the three pilots, more or less, were bang on the KPIs that we had budgeted for, and therefore, now we are rolling it out nationally. We are about 82% done on the national rollout. By first week of February, we’ll be 100% done. 270-odd distributors have been transitioned to the new go-to-market model, and we’ve added 160 more distributors. We’ve used AI to align routes and servicing norms. Also, dispatch plans, auto-replenishment systems have been aligned, and the sales hierarchy has also been realigned as needed. For example, if it’s the salt plus all non-salt, so the territory executives and area managers will handle only salt, and we consolidate at the region level.
So to give dedicated focus both from a supervisory level as well as from an execution level on the ground. This I already talked about: 29% contribution, growing at 29% — 29% growth, and growth businesses now account for 30% of our India business. New launches across health and wellness, convenience, and premiumization. We have launched matcha. We’ve launched RTD green tea and fruit tea, green tea, which includes L-Carnitine as well. Tata Copper now in glass. We’ve launched various formats of coffee and jelly and flavors in coffee. Soulfull, we’ve launched SlimCare.
In convenience, we’ve got ready mixes for Paneer Chilli, Schezwan, and Manchurian. We always had ginger garlic paste, but there is an opportunity for a separate ginger and garlic. And we’ve launched the high-end chili soy, light soy, which is primarily used in Southeast Asian/Japanese restaurants. Rock salt, we’ve taken it to the next level by launching a Himalayan version. Our ratings underscore our commitment to responsible business. We’ve upped the game on MSCI ratings, upped our score on S&P Global, and done decently on all the other ratings.
In macro terms, tea prices are coming down broadly to the 2024 levels. Albeit, in the last end — in the fag end of Q3, we did see a little bit of an uptick on tea prices, keeping a close watch on that. Coffee had started to come down, except after the Venezuela action, there was a bit of uptick on coffee. The forecast is that from the current about $370 to $390, it should start coming down, but your guess is as good as mine on coffee pricing. We remain agile and ready to take pricing as and when needed.
In packaged beverages, 3% volume translated to 3% net revenue for tea. Marginal movement in market share. Albeit, gross margins expanded handsomely out here as tea prices came back to normal. India foods, 19% net revenue growth, 16% volume. Salt up by 14% on revenue. Sampann 45%. Salt market share up by 40 basis points. Ready to drink, close to INR200 crore net revenue. Remember, Q3 is probably one of our lower quarters, and therefore we are well poised to recover strongly in the coming season. Revenue up 26%, primarily driven by volume up at 27%, and we’ve expanded the ready to drink tea and coffee aggressively in the meantime.
Capital Foods, Organic India, Capital Foods close to INR240 crore revenue. Organic India, INR120 crore, combined gross margins of close to 50%. Non-branded business revenue up 20%, soluble revenue up is 34%. Tata Starbucks, second successive quarter of same-store sales growth of 3%. Average daily traffic, which was the issue, is now more or less stabilized. It is — and ticket is holding. We opened 12 new stores during the quarter. We are now at 504. We opened our second reserve store in Gurgaon, and now we are present in 81 cities, with Jabalpur being the latest city to be opened.
UK flat on revenue. Market share on black close to 19%, and we continue to maintain 10% value market share, but very strong delivery on profitability in the UK. The US business, very strong revenue growth driven both by volume and by pricing at 31%. Market share slowly inching up both for K-Cups as well as coffee bags. In the US, coffee bags are growing roughly 4 times the growth rate of K-Cups. And given our strong share in bags, we remain quite confident to continue this growth, at least in the near term. Canada, as we took some aggressive pricing on tea, revenue has been sluggish. Growth in specialty has been heartening at 2%. And overall, more or less maintained our market share at 25%.
Ashish, over to you for financials.Thank you, Sunil. I think most of you would have seen the numbers, I’ll keep it very brief. Our consolidated revenue crossed the milestone of INR5,000 crores this quarter, growing at 15%. Growth was fairly broad-based with all three vectors of the business delivering double-digit growth, which is India, international, and non-branded. In terms of margin, we expanded our EBITDA margins by 120 basis points, sequentially by 60 basis points. EBIT margins expanded by 150 basis points this quarter. This was largely driven by the recovery in India margins and led by the moderation in tea prices and therefore recovery in the tea margins. International margins continue to remain impacted by the US coffee, albeit, some of the pricing interventions that we have taken in the last quarter have improved the margin profile, but the gap remains. On non-branded, there was again a contraction in the margin, largely on account of the fact that in the base, we had some inventory gains and fair valuation gains, which of course are not repeating, but margins have come to more normative levels right now.
On a nine-month basis, very quickly, top line and consolidated basis growing at 14% and the line 13. Of course, at a YTD level, our EBITDA margins have contracted by 80 basis points because of the impact that we had both on tea and coffee in the first half. Overall financials, as Sunil said, top line growing at 15%, EBITDA growing at 26%, and PAT growing at 34%. In terms of exceptional item, we had three this quarter. We had a one-time gain on a sale of property, which was offset by a one-time charge that we took on some of the impairment of assets because of the transformation that is happening in our coffee factory in the US.
We also did a one-time catch-up as a consequence to the labor courts, which were announced recently. The gratuity catch-up and the leave encashment catch-up was about INR23 crores, which is what you see in the exceptional line. With that, the PAT growth was about 34%. I think I’ll not spend time on the standalone and the segment performance. Maybe we can jump to the Q&A straight away. Happy to take questions. So let me say, we have always said we will drive double-digit top -ine and bottom-line, ahead of the top line. And I think we’ve roughly delivered that. I wouldn’t comment about the broader consumption and recovery, etc. I do think the teams have executed our plans quite well. And the plans have changed through the year. For example, we didn’t have the salt targeted actions baked into the numbers or the expansion of certain brands like Sampann baked into the numbers. But let me say 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. We’ve seen opportunity this quarter and across the board, I think the teams have driven the numbers quite well.
Tejas Shah
Very clear. Sir, second, the growth portfolio has done phenomenally well, and we have reached your target of 30% of the India business way ahead of, at least a quarter ahead of your timeline. So, how should we think about this number now moving? Would you say that this can be 40%, 50% of portfolio by let’s say, 2028-’29, or you are keeping it open as of now?
Sunil D’Souza
So, let me say growth businesses have to contribute to a higher percentage of the India business fundamentally, because they’re defined as growth businesses, they’ll grow faster than the core. So, the mix will change, and that’s a conscious strategy. As we seek to diversify away from being a salt and tea company into a multi-category food and beverage company, this will happen. We are in the middle of putting numbers together for the next year and beyond. And as and when we have clarity, we will definitely give guidance. But as of now, I would say 30 is a good number to put a peg on. As and when we look at a different number, we will revert on that.
Tejas Shah
Perfect. That’s all from my side. Thanks.
Operator
Thank you. We’ll take our next question from the line of Mihir Shah from Nomura. Please go ahead.
Mihir Shah
Hi, sir, thank you for taking my question and congrats on a great set of numbers. Firstly, on tea pricing, have all the price cuts in tea captured in the quarter? If not, what percentage is reflected in 3Q? And secondly, on tea, now with tea prices going up again, fair to say that given that you have bought most of the tea prices in 2Q, you will have a lower cost advantage? And can that have a tailwind to margins? So, that’s on tea first.
Sunil D’Souza
So, Mihir, let me say broadly on commodities, we have given up on forecasting with accuracy, right? Given climate change, etc., etc., you don’t know how things pan out, number one. So, we remain flexible, agile, able to move in either direction. And that’s what I maintained even in coffee. That’s number one. Number two, there was a small uptick on tea prices at the end of the quarter. But remember, January to about mid-March, early April is a very lean season in the north. Now, how the north crop comes out mid-March to early April will determine the opening prices then.
Therefore, I would not make a statement as to whether we’ll be better off or worse off, right? We’ve done a calculation. We’ve got inventory for a decent part of Q1, but we will be flexible on moving up or down depending on how the commodity fares when the season opens. And to the other point, we’ve already passed on most of the increases in this quarter. And that’s why you saw volume equal to value growth for the quarter. And as of now, if nothing changes, broadly, we’ll go back to the mid-single-digit volume plus a couple of basis points of price mix.
Mihir Shah
Understood. Understood. Secondly, can you talk a little bit more about the GTM changes that you highlighted? 80% you’ve already said that, that pilot is already in place. Now, that is only for those number of states, eight states or so, or it is for Pan-India, some clarity on that? And what is the impact on the growth there? The 30% growth that you would call out for the growth businesses captures these GTM changes, or one can expect elevated growth because of this?
Sunil D’Souza
So number one, the primary reason we’ve done the GTM changes is to continue to drive growth. Now, as the percentage of growth businesses grows and the absolute grows, I think even maintaining the 30% is a decent enough target to have. So in the short to medium term, we’re not changing the 30%. The GTM changes fundamentally are supposed to be making sure that they drive growth. A, they are Pan-India. They are not restricted to specific states.
We had shown the maps on certain things on the strong points where Capital Foods was strong, where salt is strong, and where Organic India was strong. I mean, if that is the deduction for the eight states, that’s not a right number. We have done a PAN India, more than 5 lakh plus, more than 10 lakh plus cities. Any city, which is either an overwhelming share of salt, then it is a salt plus non-salt, where salt plus tea is overwhelming. For example, Calcutta was a 91% salt plus tea, and only 9% contribution from growth. So there we have gone plus core plus growth.
And then across every other city where we have common distributors, and we had split routes earlier, we’ve gone back and we’ve, because the retailers told us that for small drop, small this thing, they don’t want multiple salesmen coming in. And therefore, the smaller outlets, if I remember right, it’s more than INR3,000 drop per month in urban and in metros and INR2,000 lower than metros. We have common salesmen.
Beyond that, we have multi-category salesmen going in split routes. So the idea is the salesman has dedicated focus. Above the salesmen, the TSE and the ASM is also structured by category. So for salt, it is the guys only handle salt. And if it is core and growth, there is a team, which is only handling core. There is a team which is only handling growth. So that gives dedicated focus behind execution. So, not only supervisory level, execution level, everything is segmented to drive growth.
Mihir Shah
Got it. And last question on the margins. I know you highlighted double-digit revenue growth, higher than revenue growth will be the profit growth. Can you just highlight what will be the tailwinds for margins? Happy to know that your dry fruits portfolio will contribute to Sampann, etc. But again, it will be in the overall scheme of things will be relatively smaller. But what are the other drivers that can lead to better margin growth and drive higher than revenue growth on the profitability front?
Sunil D’Souza
So, I think the single biggest lever will be scale, simply, right? Growing 14%-15% in that ballpark, we get huge leverage of scale, number one. Number two is the mix of the portfolio. We’ve got a balance between the higher margin acquisitions, tea, salt, to be growing enough to offset the lower margin growth of Sampann, for example. And we managed that so far. Overall, like I said, when we exit Q4, we should be in the ballpark of a 14.5% to 15% EBITDA margin. 15% is a normative number which we need to get to.
Longer term, as we continue to drive premiumization in our portfolio and drive premium categories in the portfolio and improve margins for the base categories, for example, pulses, it was negative 5 when we started five years back. Today, it’s close to a double digit, right? So, as we improve that as well, we would expect to continue to improve the gross margin profile. Longer term, I’ve always maintained a good foods business in India should be 17 plus. We are targeted towards that in the longer-term.
Mihir Shah
Got it. Thank you, Sunil. Wishing you and the team all the very best.
Sunil D’Souza
Thank you. We’ll take our next question from the line of Nihal Mahesh Jham from HSBC. Please go ahead.
Nihal Mahesh Jham
Yes, Sunil. Good evening and congratulations on the strong performance. The first question was on Capital Foods. If you could just give a sense of what the domestic growth was, leaving apart the international impact that you mentioned because of tariffs. And ideally, I think as you were highlighting, you were expecting the changes there to sort of reflect in better growth. So, what is still missing for that part of the business to see a pickup?
Sunil D’Souza
So overall, Capital Foods has improved month-on-month for us. And like I said, we expect the go-to-market changes that we’re doing to provide impetus to that. Overall, the softness in Capital Foods was, like I said, month-on-month. So the early part of the quarter was a bit soft. And more importantly, 20% of the business is exports, largely the US. And while tea and coffee — base tea, coffee, and base spices margin, the tariffs have gone to zero. The rest of the portfolio still remains at 50%. So, as we’ve taken up prices aggressively, that has had quite a bit of an impact.
Nihal Mahesh Jham
Just possible to call out what was the growth in the export part of Capital Foods?
Sunil D’Souza
Exports was roughly flat for the whole quarter.
Nihal Mahesh Jham
Understood. Sunil, the second question was on acquisitions. Now, historically, you’ve always mentioned that whenever you’ll incrementally be evaluating, it has to be aligned to distribution, potentially something that can sort of go in the same truck as you’ve highlighted. If you ever have to consider categories, which are say beyond this, then what are going to be the aspects which you’ll look into?
Sunil D’Souza
It’s the same. Nothing changes, right? A, it has to pass strategic filters. We’ve already defined right now we’re in food and beverage. In food and beverage, we’ve defined specific categories where we’ll play in. More or less, we’ve ticked all the boxes on the categories that we wanted to play in. We’ve got the brands now to play across the food and beverage spectrum, A. B, apart from that, it has to make sense from potential value creation perspective, right? Unless that happens, I don’t think we’ll be doing acquisition. That’s not to say that we won’t. We are keeping our eyes and ears open. Like I said, almost every deal that happens in India does pass through either Tata Sons or Tata Consumer. We either will do or will not do depending on the fact that it has to tick off both the strategic and financial filters.
Nihal Mahesh Jham
Got it, Sunil. Maybe some more questions that I’ll come back in the queue, thanks.
Operator
Thank you. Next question is from the line of Percy Panthaki from IIFL Securities. Please go ahead.
Percy Panthaki
Hi sir. My question is on Sampann. As a brand overall, all the categories that Sampann deals in, is the brand breakeven at an EBITDA level?
Sunil D’Souza
So Percy, we’ve always maintained we do not do EBITDA for brands. For every single business, we do something called margin after advertising and promotion expenses. Because below that, the sales force, the operations are all common costs. I can always do a hypothetical allocation Excel sheet accounting number, but that’s not a true way to judge the business. The MAPE [Phonetic] for Sampann is positive, and it is improving quarter-over-quarter in line with our expectations.
Percy Panthaki
Understood, sir. And given that this business is a lower margin, and it would be growing at a very high pace, do you think that it will sort of put a drag on the overall consolidated margin?
Sunil D’Souza
So Percy, for the last five years, we’ve been growing Sampann at 30%, and we maintained the gross margin. The whole trick is to make sure that your portfolio works to your advantage. As I said, we’ve created a portfolio, have crafted a portfolio in a manner where A, we’ve got a set of businesses which are paying the bills and with a steady state gross margin, barring up and down of a US coffee or a tea happening from time-to-time, but broadly, longer term, tea, salt, international, very steady businesses, mid-to-high single digits, and certain gross margin.
There are high top-line businesses of RTD and Sampann, where the margin is lower but improving consistently. And then there are the growth businesses growing aggressively, smaller businesses, but higher — significantly higher margin profiles of Capital Foods, Soulfull, Organic India, those. So, it is all to make sure that you’re balancing top-line and bottom-line at the same time. So, it’s a delicate balance to place. If none of my other businesses were growing, it was only Sampann, it will be diluted. But I think over the last five years, we have proved that we have the ability to juggle multiple balls at the same time.
Percy Panthaki
Understood, sir. And earlier when you said foods business in the longer run should be 17%, is that at an EBITDA level or is that at the other calculation that is variable costs and advertising, but not accounting for fixed costs?
Sunil D’Souza
No, no. So I wish I was allowed to deliver businesses of MAPE of only 17% because below that, there is at least 12% to 13% of costs coming in, right? So I can no way deliver EBITDA as required. This is EBITDA percentage of 17%. 17 plus is the number.
Percy Panthaki
Got it. Got it, sir. Secondly, on tea, just wanted to understand the volume growth of 3% is a little lower than sort of our targets. So what is playing here? Is it sort of competition or is it, I mean, just one-off quarter or what should we read into this?
Sunil D’Souza
So, Percy, I wouldn’t measure too much into the quarter-on-quarter for every single category. Overall, year-to-date, we have delivered a 9% top-line for tea. Also remember, last year, same quarter, we had delivered a 7% volume growth. So, we’re cycling that. So if you do 7% and 3%, we are back to the 4% to 5% volume growth which we have been guiding for. So A, is the base quarter. Second, I would urge not to look at quarter-to-quarter. There will be ups and downs because at times, you’ll have volume upsides, price downsides, and vice versa. Sometimes, a few quarters it does take to settle. But overall, India tea, about 4% to 5% volume and a couple of basis points of price mix. That’s what we guide for.
Percy Panthaki
Okay, sir. That’s all from me. Thanks and all the best.
Operator
Thank you. Next question is from Sheela Rathi from Morgan Stanley. Please go ahead.
Sheela Rathi
Yeah. Thanks for taking my question. Two questions from me. The first question was with respect to Capital Foods. Sunil, just want to hear from you that in 2026, do we have any major plans with respect to scaling that part of our portfolio? And I’ll just add the second question also. The second question is, overall, on the distribution side, for the next two years, what is the kind of roadmap we have with respect to our GTM strategy?
Sunil D’Souza
So on the GTM strategy, overall, we cover about 1.7 million to 1.8 million outlets directly, and numeric reach is about 4.5 million. In the medium term, our target is to get to about a 5 million numeric reach. And the reason I’m emphasizing this is because direct reach will probably, I would say, an aspirational number is about 1.9 million to 2 million. I wouldn’t drive beyond that because now we have to get the wholesale multiplier and get into the semi-urban rural territory, which are our lower share territories. So that’s number one.
On Capital Foods, our ambition remains 25% two 30%. I do think we’ve started to expand the portfolio through innovation, number one. And number two, the new segmented go-to-market and supervisory system should drive us there. Apart from that, you would have seen our new ads that we’ve created. This is in the mold of how Capital Foods was built, making blockbuster ads memorable, which lasts for a long time. So, that is the third pillar.
Sheela Rathi
Just one follow-up, Sunil. Is there something which we feel is better [Technical Issue] off now?
Sunil D’Souza
Sorry, we missed you in the middle.
Sheela Rathi
Yeah. Is there something, which is missing for us to kind of accelerate the growth part for Capital Foods? Is there some missing link here, which we need to work on right now?
Sunil D’Souza
I wouldn’t say there is a missing link. Basically, there are two jobs in Capital Foods. There is market share growth in existing categories, and there is category creation for us. The south and east of the country, Capital Foods is a slightly alien thing, right? I mean, they’ve not seen Szechuan Chutney, etc. So, both advertising and sampling at scale are the critical pieces, and we’ve started accelerating that. We’ve upped our what we call taste ambassadors by roughly 50% over the last, I would say, six months or so.
And like you’ve seen, pumped up our A&P, including bringing in known faces from the south into the ads, so as to relate better to the consumers. And lastly, like I mentioned, I’ll give you the example of Calcutta, where 91% of the business is tea and salt, 9% is total growth categories. You can imagine how much focus it gets. And therefore, the segmented go-to-market will be a huge unlock because now there is dedicated focus on these categories.
Sheela Rathi
Sorry, 90%, if you could just repeat, Sunil?
Sunil D’Souza
In Calcutta, 91% of the business came from tea and salt, and 9% from all the growth categories, including Organic India, Capital Foods, Soulful, and Sunpann. So, I mean, whether it’s a distributor, whether it is a salesman, whether it is a supervisor, ultimately, bread and butter is paid for by tea and salt, and therefore, the focus is always tea and salt. Now that we’ve separated it out, there is dedicated focus on these growth categories, and that’s where we expect the unlocks.
Sheela Rathi
Sorry, if I may ask, what is the reverse of that 91%, 9%? I mean, which are the markets where we are seeing the fastest growth for our growth categories?
Sunil D’Souza
So, fastest growth for — growth categories is across the place. I just gave you an example of Calcutta, because that stuck in my mind about what should be done in large metro markets to unlock.
Sheela Rathi
Okay. Understood. Thank you, Sunil.
Operator
Thank you. We’ll take our next question from the line of Anurag Dayal from PhillipCapital. Please go ahead.
Anurag Dayal
Yeah. Hi, sir. Thank you for the opportunity. So my question is related to RTD portfolio. Two parts of the question. One is that we launched the ZigZap Energy drink, I think, previous quarter. How has been the initial reception to it? And secondly, there is expectation that summer will be good this year, and a lot of beverage companies have already started to build their channel, increasing VC cooler and all. So where we are in the distribution and how we are planning to increase our distribution and reach before the summer?
Sunil D’Souza
So let me use a Hindi term, [Foreign Speech], because I have stopped trying to forecast the weather, right? When there are rains in Bombay in November and December, and it starts, doesn’t rain till around June-July, it’s a very difficult forecast, right? But that said, you’re absolutely right. Seasonality does pick up. I would say probably February onwards is when you would start seeing the uptick. So right now, we are, let me say, over the last two years, we have started to be ahead of the curve. We have ramped up our distribution, and we should be in a good position by around end January, early February, whether it is salesforce, whether it is distributors, whether it is salesmen, because after that, the entire focus is on execution.
So if it is a good summer, we will ride it out. Like you’ve seen, it’s not a pricing-driven growth. It’s a volume-driven growth, which I feel good about. We have very, very clearly started to build out the three pillars, the entire water stack, right from the INR10 bottle of copper water up to the INR90, INR100 bottle of Himalayan, and the entire range in between. You will see some more aggressive launches in this space coming in the next 60 days or so. We’ve started to build the whole stack of ready-to-drink tea and coffee, whether it is green tea, fruit tea, kombucha, ready-to-drink coffee in a can at INR70. We have now a PET at INR50 and a high-end as well. Then, of course, we’ve got the entire cups portfolio. ZigZap was launched middle of last quarter. Fingers crossed, we’re still in a few markets. We want to test it out before we go broad-based. But right now, more or less to expectations.
Anurag Dayal
Thank you. So just to follow up on RTD, what is the current reach if you can get how many outlets we reach for RTD?
Sunil D’Souza
I’ll have to get back to you on the exact number of outlets, but it’s broadly in the million-outlet ballpark. Right now, we will focus on growing our share in this territory before widening the footprint.
Anurag Dayal
Thank you so much.
Operator
Thank you. Next question is from the line of Siddharth Negandhi from Chanakya Wealth Creation. Please go ahead.
Siddharth Negandhi
Thank you for taking my question.
Operator
I’m sorry, can you use your handset mode, please? Your audio is not very clear.
Siddharth Negandhi
Just give me a minute. Hi, is this clear?
Operator
Yes, please go ahead.
Siddharth Negandhi
Hello.
Operator
Yes, we can hear you. Please go ahead.
Nidhi Verma
So, moderator, perhaps you can use the webcast.
Operator
Yes, please go ahead.
Nidhi Verma
Yeah. Okay. So Sunil and Ashish, there are some questions on the webcast link. I think some of those have been answered, which were touching upon the go-to-market changes, which you’ve already explained. There is one more question on the India beverage market share in tea has seen some softness despite revenue growth. To what extent is this a conscious value-over-share trade-off, and how do you internally track success in such situations?
Sunil D’Souza
I think I have publicly maintained, and the good news is now multiple people are saying the same thing. If you read the Economic Times, I think yesterday or the day before, just to give you a perspective, last quarter, I think about 18.5% of my business came from e-commerce, quick commerce. The previous quarter was 21%. This quarter, it was 18.5%. Modern Trade roughly is in the 14 to 15 ballpark, so that’s 33%. About 5% comes from institutions, which is 38%. Therefore, all of GT is only 60% to 62% of the business. In Modern Trade, remember, which Nielsen reports, one significant player doesn’t share data.
So at best, they are reporting about two-thirds of the market in a sampling format. If you observe market shares, ups and downs, I would urge you to listen to commentary from multiple players and then make up your mind about who’s gained share, who’s lost share. We look at, because there is no other database available, we report, continue to report Nielsen because otherwise, if I don’t report, I’ll be accused of trying to hide numbers. So we do report it for what it is worth. Yeah, when my volume growth is still a strong number compared to industry, when total value growth is close to double digits, we feel in a good place. I don’t think we’re losing market share.
It might move marginally up and down. Just to give you a perspective on, Nielsen does measure e-commerce. They don’t report it and don’t total it into this. But we are market leaders on e-commerce. Incidentally, e-commerce, quick commerce, as I mentioned, quick commerce has grown 100%. So, we have about, on e-commerce, we have about a 38%, 39% share, and we are leaders. If I total all that, it will be a completely different picture. There are channel shifts which Nielsen doesn’t measure. Where it measures, it’s by sampling. And like I said, in Modern Trade, it doesn’t pick up one player. So your guess is as good as mine.
Nidhi Verma
Thank you, Sunil. The next question is on Tata Sampan. The question is that is the growth being primarily driven by distribution expansion, or are we beginning to see repeat consumption and brand-led pull, especially in staples like pulses and spices?
Sunil D’Souza
So let me say my strongest channel for Sampann is e-commerce, simply because most of the categories that we play in, with all due respect, we are also competing with a retailer. Remember, when I’m selling pulses, he is scooping up pulses from a 50-kilo bag, making a 50% margin on that, whereas in my Sampann, he’ll at best make a 15% odd sort of margin. So therefore, e-commerce, quick commerce is the stronger channel for Sampann. And the fact that we’re getting this volume traction and this thing just proves that we’ve built brand loyalty and pull. Just to put it in perspective, even when I do market visits, etc., most of the times, even the GT retailers who are around, they attest to the fact that once a consumer has picked up Sampann, then they hardly go back just because of our stringent adherence to quality norms.
Nidhi Verma
Okay. Thank you, Sunil. There is a question on innovation. It says with innovation remaining strong at 15 launches this quarter, could you share what percentage of revenue now comes from products launched in the last three years, and how has this metric evolved?
Sunil D’Souza
So we’ve launched 15 products this quarter. Year-to-date is 55. And we’ve publicly said that we want to be around the 5% plus mark on innovation to sales, defined as revenue from products launched in the last three years. We are at a 4.8 at the end of last quarter, and there’s no reason we will not cross 5 this year.
Nidhi Verma
Thank you. There is one question on how do you see the EU FTA for Tata Consumer in the long term and any update on Tata Starbucks on further store opening in terms of resizing stores and further investment in that business?
Sunil D’Souza
So, EU FTA, I will not comment on it because I’m not sure we have all the details on what unfolds, number one. Number two, as we mentioned, our big focus areas in the international markets are UK, US, Canada. EU is there, but it is not a very, very significant piece. So, I would wait and watch to see how that pans out. On Tata Starbucks, we remain bullish on the coffee opportunity in India, both in-home and out-of-home. On out of home, it is Tata Starbucks. We are now at 504 stores in 81 cities. We are immensely focused on making sure we constantly tweak our business model to make sure it appeals to Indian consumers and continue to drive business.
As we said, coming from a significant dip in the entire QSR industry over the last 24 months, the last two quarters have been encouraging. We are now in positive same-store sales growth. We did temper store openings a bit to ride through the softness and make sure we made the right modifications to enable faster growth going forward. We remain in the middle of that entire exercise. But longer term, we do intend to be among the top, if not the top coffee shop in India.
Nidhi Verma
Thank you, Sunil. There is a question from Rohit from [Technical Issue] WhiteOak. He’s asking, how much is quick commerce within this quick e-commerce savings of 18% to 20%?
Sunil D’Souza
So, quick commerce is about 15%. The balance, about 4% to 5%, would be e-commerce.
Nidhi Verma
I’m just mindful of the time, so maybe I’ll just take one last question from the webcast. Can you clarify the outlook for tea price mix going forward, given we have given some pricing back to consumers? Should we expect some negative price mix for the next few quarters?
Sunil D’Souza
Yeah. As I said, we’ve given off most of the pricing during this quarter, but I don’t think the entire picture on the pricing has flowed through. There would be a little bit of impact of price mix, but I wouldn’t say it will be significant enough, but it will be sort of flattish to slightly lower going forward. But as I said, as we’ve given off price, we expect volume to pick up. As I said, we’ve said mid-to-high single-digit revenue growth. At points in time, volume will be overpowering versus price growth and vice versa. Going forward, at least for the short term, we expect volume to come back stronger and therefore us continuing to deliver the mid- to high single-digit revenue top line.
Nidhi Verma
Perhaps one last question before we wrap up. There is a question on international margins, whether they are largely back at normative levels or are we likely to get expansion in the Q4?
Sunil D’Souza
No. International margins are not at the normative level simply because the entire impact of the coffee cost increases have not passed through. We’ve had one more round of price increase in the US in the month of January, post which we would have broadly passed on the current cost increases. But that takes some time to translate into the P&L. So, I would say we are about a quarter away from seeing normalized pricing for international. Yeah, so we are at least a quarter off.
Nidhi Verma
Thank you. Thank you so much, Sunil. And just being mindful of the time, I know there are still some pending questions, but perhaps you can reach out to us for that. On behalf of the management of Tata Consumer, I would like to thank you for joining us today. Thank you.
Sunil D’Souza
Thank you.
Operator
[Operator Closing Remarks].