Tata Consumer Products Ltd. share price target

We remain constructive on Tata Consumer Products as the company enters the next phase of growth led by scaling high-margin growth businesses, GTM-led distribution acceleration, and improving international profitability.

Tata Consumer Products (TATACONS) reported ~34% YoY growth in EBIT in 4QFY26, led by strong 88% YoY growth in India branded business EBIT, which was supported by operating leverage (decrease in other expense as a percentage of sales by 230bp).

Q4FY26 performance: TCPL's consolidated revenues grew by 18% YoY to Rs.5,434cr. India business volume growth stood at 16% in Q4FY26. India Foods, International business and non-branded business registered strong growth of 21%, 21% and 43% respectively during the quarter. Higher coffee prices YoY led to 65bps YoY dip in the gross margins to 41.3%. Lower other expenses led to 111bps YoY improvement in the EBIDTA margins to 14.6%. EBIDTA grew by 27.6% YoY to...

India Foods and International businesses delivered healthy growth, on the back of strong execution and volume-led demand

Revenue of the domestic business increased 13.0% YoY to Rs. 3,203cr, led by strong performance of growth businesses such as Tata Sampann (+45% YoY), Ready-to-Drink (RTD; +26% YoY), and Capital Foods and Organic India (+15%...

About the stock: Tata Consumer Products (TCPL) was formed with a vision to synergise, simplify and scale the principal consumer products interests of the Tata Group under one roof. Under the vision it has transformed itself from commodities tea/coffee business to high margins food and beverage business. Q3FY26 performance: TCPL's consolidated revenues grew by 15% YoY to Rs.5,112cr driven by 15% volume growth in India branded business. India beverage business reported 7% YoY growth and India food business reported 19% YoY growth while non-branded business revenues grew by 23% YoY in Q3FY26....

Tata Consumer Products is poised to maintain strong growth momentum in H2FY26, driven by sustained double-digit performance in India Foods and Beverages.

About the stock: Tata Consumer Products (TCPL) was formed with a vision to synergise, simplify and scale the principal consumer products interests of the Tata Group under one roof. Under the vision it has transformed itself from commodities tea/coffee business to high margins food and beverage business. TCPL's product portfolio includes tea, coffee, salt, pulses, spices, dry fruits, water, ready-to-drink (RTD), ready-to-cook (RTC), and breakfast cereals, snacks, and mini meals. Q2FY26 performance: TCPL's consolidated revenues grew by 18% YoY to Rs.4,965.9cr driven by 15% growth in the India beverage business and 19% growth...

Tata Consumer Products (TATACONS) reported ~8% YoY growth in EBIT, marking a recovery after three consecutive quarters of decline.

In FY25, India’s tea production declined 5% YoY but rebounded in the current season (Jan–Jul’25) with 14% growth, led by Assam and West Bengal. This stabilized prices after a peak in Jun’25.

*over or under performance to benchmark index Tata Consumer Products, a leading Tata Group company, has a global presence in food and beverages. It is the world's second-largest tea company, with significant...

Consolidated revenue grew by 9.8% YoY (+3.7% QoQ) to INR 47,789 Mn., below our estimates (-3.4%), led by weakness in Capital Foods, Organic India, and NourishCo’s, which were impacted by transitory disruptions, partly offset by a resilient performance in the India Business, which grew 11.0% YoY (+6.4% QoQ).

1QFY26 sales came in 1% below consensus and our estimates while EBITDA was 3% below consensus and 1% below our estimates

Tata Consumer Products (TATACONS) reported 10% revenue growth in 1QFY26, while EBIT declined 12% YoY. EBIT was affected by higher input costs in the Branded business (India/international business EBIT down 11%/12% YoY) and declining coffee prices in the non-branded business (EBIT down 33%).

Tata Consumer Products’ (TATACONS) FY25 annual report highlights the management’s strategic efforts to reinforce its foundation by broadening distribution reach and market presence, driving growth through portfolio expansion, pursuing new opportunities, and prioritizing innovation.

Tea market share losses to unorganised / regional players are limiting inflation pass-through. Margin recovery now reliant on deflation

TCPL’s Q4FY25 numbers were good with consolidated revenue growing by 17.3% y-o-y to Rs. 4,608 crore (12% y-o-y organic revenue growth), with India beverage business revenues growing by 17% y-o-y (9% y-o-y organic growth), India foods business improving 27% y-o-y (organic growth at 17%), international business growing by 5% y-o-y and non-branded business reporting a 25% y-o-y growth.

Tata Consumer Products (TATACONS) reported 17% revenue growth in 4QFY25, while EBIT declined 9% YoY. EBIT was affected by higher input costs (tea cost inflation) in Indian branded business, which declined 25% YoY, and a 4% EBIT drop in international branded beverage segment.

TCPL’s Q3FY25 numbers are not exactly comparable on y-o-y basis due to consolidation of acquired businesses - Capital Foods and Organic India. TCPL’s Q3FY25 performance was impacted by sharp increase in the tea prices (up by 20-40%) which led to 234 bps y-o-y decline in the consolidated OPM to 12.7%.