Synopsis: A leading FMCG stock from the Tata Group reported its September quarter results. While quarterly profit and revenue grew on both yearly and sequential bases, margin softness and analyst caution kept investor sentiment subdued. Should You Buy, Sell Or Hold?
A Tata Group FMCG stock came under mild pressure after its Q2FY26 results, which reported steady growth in revenue and profit but slight moderation in operating margins. Brokerages took note of the performance, maintaining a cautious stance as they awaited clearer visibility on margin recovery and international business trends.
Tata Consumer Products Ltd, with a market capitalization of Rs. 1,15,083.70 crore, opened at Rs. 1,201.90 against the previous close of Rs. 1,199.50 and slipped 4.67 percent to an intraday low of Rs. 1,143.50.
Financial Snapshot – Q2FY26
The company reported consolidated revenue of Rs. 4,966 crore for Q2FY26, compared to Rs. 4,779 crore in the previous quarter, marking a sequential rise of 3.9 percent. Operating profit increased 10.7 percent QoQ from Rs. 607 crore to Rs. 672 crore, while the operating margin improved to 14 percent from 13 percent. Profit before tax rose 12.5 percent to Rs. 523 crore from Rs. 465 crore, and net profit advanced 22.6 percent sequentially to Rs. 407 crore from Rs. 332 crore. Earnings per share moved from Rs. 3.38 to Rs. 4.09, reflecting a 21 percent QoQ increase.
On a year-on-year basis, revenue grew 17.8 percent from Rs. 4,214 crore in Q2FY25 to Rs. 4,966 crore in Q2FY26. Operating profit rose 7.3 percent from Rs. 626 crore to Rs. 672 crore, while the operating margin contracted slightly to 14 percent from 15 percent. Profit before tax surged 31.7 percent YoY from Rs. 397 crore to Rs. 523 crore, and net profit increased 10.9 percent from Rs. 367 crore to Rs. 407 crore. EPS grew from Rs. 3.68 to Rs. 4.09, marking an 11.1 percent YoY rise.
Analysts’ View on Tata Consumer Products
Jefferies maintained a Hold rating and raised its target price to Rs. 1,210 from Rs. 1,100, implying a potential upside of 5.8 percent from today’s low of Rs. 1,143.50. The brokerage highlighted a strong quarter with broad-based growth across Indian businesses, with growth categories surpassing 30 percent led by Sampann and Nourishco. It noted that GST-related issues impacted Capital Foods, Organic India, and Soulfull, while international performance was solid but margins remained under pressure. Management continues to be confident about domestic growth and profitability.
CLSA also maintained a Hold rating and increased its target price to Rs. 1,097 from Rs. 1,065, representing a downside of 4.1 percent from the intraday low. The brokerage noted that Tata Consumer beat estimates on all fronts, supported by double-digit growth in tea and salt. The India-branded business saw improvement in both volume and pricing, while growth businesses rose 27 percent with expectations of 30 percent medium term growth.
About the Company
Tata Consumer Products Limited brings together the Tata Group’s key food and beverage interests under a unified platform. Its product range spans tea, coffee, water, ready-to-drink beverages, salt, pulses, spices, ready-to-cook and ready-to-eat meals, breakfast cereals, snacks, and mini meals.
The company’s beverage portfolio includes well-known brands such as Tata Tea, Tetley, Organic India, Eight O’Clock Coffee, Tata Coffee Grand, Himalayan, Tata Copper+, and Tata Gluco+. In foods, its key brands are Tata Salt, Tata Sampann, Tata Soulfull, Ching’s Secret, and Smith & Jones. With a presence in over 275 million Indian households and operations across international markets.
-Manan Gangwar
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