According to reports from NDTV Profit, brokerage firm Deven Choksey Research has retained its 'Buy' rating on Tata Consumer Products Ltd. with a target price of ₹1,301, implying an upside potential of around 18% from the current market price of ₹1,101. Meanwhile, ICICI Securities has issued a 'Buy' rating with a significantly higher target price of ₹1,450 in its research report dated July 25, 2026. The brokerages believe that Tata Consumer is well positioned to deliver sustainable earnings compounding over the next 3-5 years, supported by the increasing contribution of high-growth businesses, a credible margin expansion roadmap, and continued premiumisation of its portfolio. Motilal Oswal Research has also maintained a 'Buy' rating with a target price of ₹1,500, while JM Financial Research holds an 'Add' rating with a target price of ₹1,250. At the current price, the stock, which has delivered muted (-5%) returns over the past six months, is trading at about 42 times its FY28 earnings estimates.
As reported by ICICI Securities, Tata Consumer Products delivered robust Q1FY27 results with consolidated revenue growing 12% YoY, driven by 13% India branded volume growth (UVG) and the scaling up of the growth portfolio. The company demonstrated its ability to deliver volume-led growth while protecting margins through product mix and operational efficiency improvements. Gross margin expansion of 260 basis points YoY and 140 basis points sequentially was aided by benign tea prices, which helped drive margins for the India business by 170 basis points YoY, and steady international margin performance. However, higher staff costs (up 15.6% YoY) and other overheads (up 20.4% YoY) weighed on operating profit growth of 19.3% YoY, limiting operating margin gains to 85 basis points.
The growth portfolio segment recorded exceptional growth of 46%, now accounting for 36% of total revenue compared to 31% in FY26, demonstrating the successful transformation from a legacy tea and salt player into a diversified, high-growth FMCG platform. Tata Sampann grew 58% led by pulses, spices, dry fruits and oils, with the company guiding for 25-30% growth over the coming quarters. Capital Foods and Organic India saw strong momentum with 40% and 27% YoY growth respectively, contributing from both domestic and export markets. The ready-to-drink (RTD) segment's revenue was up 41% with 35% volume growth, led by Tata Gluco Plus, Copper Water and the wellness drink Kombucha. The salt portfolio delivered 7% value and volume growth, with its market share moving towards 40% as the company took calibrated price hikes to mitigate input cost inflation.
The international business delivered 16% growth, led by a strong performance in the US which recorded 7% YoY growth on a constant-currency basis, though this was partly offset by a weak UK business which was down 2% due to a slowdown in the black tea category. The non-branded segment had a weak quarter as a 26% fall in coffee prices hit realisations, though better execution supported volumes. The Starbucks joint venture grew 11% with mid-single-digit same-store sales growth. Brokerages remain positive on the international business outlook, with Motilal Oswal Research expecting the company's growth momentum to strengthen further driven by improving go-to-market execution, rising e-commerce penetration, premium product launches, and continued scale-up of high-growth businesses.
According to ICICI Securities, margins could benefit from full realisations of recent price hikes, cost efficiencies, and easing coffee costs, supporting 50-70bps EBITDA margin expansion in FY27, partly offset by raw material inflation and elevated advertising costs. JM Financial Research believes that sustained momentum in growth businesses, stable international business, and recovery in domestic volumes should help achieve double-digit revenue growth, along with benefits from price hikes, moderation in coffee prices, operating leverage, and cost-saving programmes. For medium-term growth, ICICI Securities identifies key triggers including acceleration in the growth portfolio, premiumisation, distribution re-engineering, quick commerce, new product development, and branded penetration gains. The company's focus on premiumisation and diversification continues to support enhanced overall financial performance and competitive positioning in the FMCG market.
