Mumbai: Tata Consumer Products Ltd (TCPL) expects profitability to steadily improve as newer businesses gain scale, with the company targeting an EBITDA margin of more than 20% over the long term, according to Tata Sons chairman N Chandrasekaran.The maker of Tata Salt and Tata Tea currently operates at around 14% EBITDA margin. Chandrasekaran, who is also the chairman of TCPL, told shareholders at the company’s 63rd annual general meeting on Wednesday, that the company will improve profitability through a combination of better product mix, volume growth and higher contributions from premium and high-margin categories."The company in the medium term will look at 17% and eventually the goal is to cross 20% EBITDA margin," he said, adding that margins should improve by 50-100 basis points annually, depending on market conditions.The comment comes as Tata Consumer positions itself as a diversified FMCG company rather than a tea-and-salt focused business. Chandrasekaran said growth businesses, including Tata Sampann, Tata Soulfull, Capital Foods, Organic India and NourishCo, now account for more than 30% of the India portfolio and are growing faster than the core business.The company plans to further improve profitability in these segments while targeting at least 25% annual growth from acquisitions such as Capital Foods and Organic India. Together, the acquired businesses generated revenue of over Rs 1300 crore in fiscal 2026.Chandrasekaran said growth would continue to be driven by a combination of volume expansion and selective price increases. While price hikes become necessary during periods of commodity inflation, particularly in categories such as tea, volume growth remains a key priority, he said.Tata Consumer is also doubling down on innovation and digital capabilities to drive future growth. The company launched about 80 products during FY26, while innovation contributed 4.5% of sales and is deploying artificial intelligence across product development, demand forecasting and supply-chain operations.The maker of Tata Tea and Tata Salt reported a 15% rise in FY26 revenue to Rs 20290 crore, while net profit grew 20% to Rs 1547 crore. Emerging channels led by quick commerce now contribute more than 35% of its India business.