27 Jul , 2026 By : Debdeep Gupta
Shares of Tata Consumer Products are likely to be in focus on Monday after the company reported a largely strong set of fiscal first quarter earnings. Brokerages maintained a positive stance on the stock despite highlighting near-term margin pressures in its India business.
The stock had settled at Rs 1,088 on Friday, down 1.78 percent ahead of the earnings announcement. It has declined 7.2 percent so far in 2026, compared with a 9.1 percent fall in the Nifty 50. The company commands a market capitalisation of more than Rs 1.08 lakh crore.
Tata Consumer Products reported a 27.8 percent year-on-year rise in consolidated net profit to Rs 427 crore for the June quarter, ahead of the CNBC-TV18 poll estimate of Rs 410 crore. Revenue increased 11.9 percent to Rs 5,348.8 crore, also marginally beating estimates. EBITDA was broadly in line with expectations, while the EBITDA margin improved to 13.5 percent from 12.7 percent a year ago but was marginally below estimates.
Jefferies retained its Buy rating on Tata Consumer Products stock with a target price of Rs 1,450, implying an upside of over 33 percent. It called Tata Consumer one of its top picks. The brokerage said the company's growth portfolio expanded 47 percent year-on-year and has now become the largest contributor to India revenues. While it acknowledged the impact of price corrections across the base India branded, unbranded and international businesses, it remained positive on the outlook for both growth and margins. Jefferies also highlighted Tata Consumer's relatively limited dependence on crude oil-linked inputs compared with peers.
HSBC also maintained a Buy rating with a target price of Rs 1,390. It described the quarter as strong on the revenue front but flagged weaker sequential margins in the India business due to cost inflation. The brokerage said that the company's growth businesses delivered 47 percent growth, while management maintained its margin guidance. However, HSBC trimmed its earnings estimates by 2-3 percent to factor in the first-quarter margin miss.
Morgan Stanley reiterated its Overweight rating with a target price of Rs 1,351. The brokerage attributed the sequential decline in India margins to temporary inflationary pressures and higher advertising and promotion spending, adding that management reiterated its guidance. It also highlighted management's comments that tea inflation currently stands at around 7-10 percent, with the company prepared to implement price hikes if required to protect margins.
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