Geojit Financial Services has issued a buy rating on Tata Consumer Products with a target price of ₹1,256 in its research report dated August 06, 2026. According to the report, the brokerage maintains its positive outlook on the global food and beverages company, which operates as the world's second-largest tea company with significant presence across multiple markets.
The company delivered strong financial results for Q1FY27, with consolidated revenue rising 11.9% year-on-year to ₹5,349 crore. As reported by Geojit Financial Services, the growth was supported by robust performance from growth businesses and sustained strength across the India branded portfolio. Domestic business revenue increased 13.3% YoY to ₹3,540 crore, driven by exceptional growth in key segments including Tata Sampann (+58%), Ready-to-Drink (+41%), Capital Foods (+40%), and Organic India (+27%). The international business revenue grew 17.3% YoY to ₹1,343 crore, led by 7% constant currency growth in the US business and share gains in specialty tea, though this was partially offset by weakness in the UK black tea category.
EBITDA grew 19.3% YoY to ₹724 crore, with EBITDA margin improving 80 basis points YoY to 13.5%. According to Geojit Financial Services, this improvement was driven by lower tea costs, strong growth business contribution and operating leverage. Reported profit after tax rose 28.4% YoY to ₹445 crore, primarily driven by higher topline growth. The margin expansion reflects the company's operational efficiency and strategic focus on higher-margin growth segments.
Despite strong quarterly results, Tata Consumer Products shares fell 2.07% in today's trading session on August 04, 2026, as reported by market data. The stock's performance reflects broader market dynamics and investor sentiment around the company's growth trajectory. The current market capitalization stands at ₹1,08,183 crore, indicating significant investor interest in the diversified food and beverages portfolio.
