The company also reported a 17.8% YoY rise in revenue from operations to Rs 4,966 crore, compared with Rs 4,214 crore a year ago.
Backed by strong revenue performance, Tata Consumer’s total income grew 17.45% YoY to Rs 5,003 crore from Rs 4,260.42 crore in the previous year. The net profit is attributable to the owners of the company. Consolidated EBITDA for the quarter stood at Rs 675 crore.
Following the results, major brokerages revised their outlook and target prices for Tata Consumer Products.
Global brokerage Morgan Stanley maintained its Overweight rating while raising the target price to Rs 1,265 from Rs 1,221. The firm highlighted Tata Consumer’s diversified growth portfolio, which accounts for roughly 30% of sales and supports around 30% top-line growth in the near term.
Morgan Stanley expects EBITDA margins to reach 15% by Q4FY26, up from 13.5% in Q2FY26. It added that margins in India remain stable and the non-branded business has normalized. Recovery in international margins is anticipated within 1–1.5 quarters as US coffee prices ease. Meanwhile, a 20% YoY decline in tea prices is supporting margin stability, and NourishCo’s growth is accelerating with a narrowing volume–value gap.Goldman Sachs also maintained a Buy rating, increasing its target price to Rs 1,350 from Rs 1,290. The brokerage noted FY25 EPS dilution due to higher tea costs, competition in the ready-to-drink segment, and the Capital Foods acquisition. However, it stated that Q2FY26 results mark the beginning of robust EPS growth from FY26 onwards. It expects margins to recover on the back of normalization in tea prices and input costs.The firm further emphasized the role of innovation and wider distribution in driving growth across categories, alongside lower interest costs as acquisition-related debt declines. Goldman Sachs raised its FY26–28 EPS estimates by about 2% and maintained a positive outlook on the company.
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