Tata Consumer shares surge over 6% as brokerages cheer Q2 results

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While consolidated profit increased, standalone net profit declined 15% to ₹242.81 crore from ₹285.19 crore. Standalone revenue, however, rose 17% to ₹4,207.50 crore from ₹3,595.22 crore

By Madhu Balaji

Updated - October 27, 2026 at 10:56 AM. | Bengaluru

Tata Consumer’s quarterly results showed growth in consolidated profitability, while standalone profit declined despite higher revenue. | Photo Credit: Venkatesan R 5375

Tata Consumer Products shares surged over 6 per cent on Tuesday after the company reported a 16 per cent year-on-year increase in consolidated net profit attributable to shareholders to ₹469.30 crore in the July–September 2026 quarter.

The stock traded at ₹990.50 on the NSE at 9.40 am after rising to ₹994.85, against the previous close of ₹936.50.

Tata Consumer shares jump

While consolidated profit increased, the company’s standalone net profit declined 14.9 per cent to ₹242.81 crore from ₹285.19 crore. Standalone revenue, however, rose 17 per cent to ₹4,207.50 crore from ₹3,595.22 crore.

Tata Consumer’s quarterly results showed growth in consolidated profitability, while standalone profit declined despite higher revenue.

Goldman Sachs maintained its buy rating on Tata Consumer Products, but cut its target price to ₹1,325 from ₹1,440. The brokerage highlighted strong double-digit volume growth and high-teens EBITDA growth despite a challenging environment.

Goldman Sachs noted that the India business delivered double-digit volume growth and 17 per cent revenue growth, with pricing expected to accelerate significantly in the second half. The growth businesses recorded 40 per cent growth, driven by Sampann and ready-to-drink (RTD) products. Capital Foods and Organic India reported 24 per cent domestic growth, while exports were affected by shipping delays. Salt continued to deliver strong growth, while tea remained muted, with a potential recovery in the second half.

Jefferies maintained its buy rating but lowered its target price to ₹1,250 from ₹1,450. The brokerage said the second-quarter performance was ahead of expectations despite inflationary pressures in tea and salt. It highlighted the growth portfolio’s momentum from quick commerce and noted that product price increases should provide support ahead. While international revenue declined, margins expanded. Jefferies also maintained its expectation of 50–70 basis points of year-on-year EBITDA margin expansion for FY27.

Citi retained its buy rating but reduced its target price to ₹1,225 from ₹1,400. The brokerage said growth momentum remained sustained and expected a clearer path to margin recovery through the second half. It noted that pricing actions across multiple categories had yet to flow through fully, which should help mitigate margin pressures in India. Stronger international and non-branded profitability were also expected to support consolidated performance. Citi estimated 50 basis points of EBITDA margin expansion in the second half.

Equirus Securities maintained its long call on the stock as it remained constructive on the company’s ability to broaden its earnings base by scaling its growth businesses alongside tea and salt. It identified sustaining growth-business momentum, translating stronger domestic execution in acquired businesses into overall growth, and reviving tea volumes as key execution tests.

It also highlighted management’s long-term aspiration of a 17–20 per cent EBITDA margin for India as a profitability reference. It said the recent share-price correction offered a better entry point, although sector-wide de-rating had prompted it to lower its target multiple.

Elara Securities reiterated its accumulate rating, while lowering its target price to ₹1,080 from ₹1,290. The brokerage increased its earnings per share estimates by 1.3 per cent, 1.5 per cent and 1.9 per cent for FY27E, FY28E and FY29E, respectively.

Elara Securities cited slower-than-estimated margin improvement for its lower sum-of-the-parts-based target price. It assigned a 45-times price-to-earnings multiple to March FY28E, compared with 54 times earlier, and valued the Starbucks joint venture at ₹40 per share, down from ₹54.

Published on October 27, 2026

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• Tata Consumer Products Ltd

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