Tata Consumer Products shares fall over 5% despite Q3 profit rising 38% to ₹385 crore; here’s what analysts said

The stock was trading 4.89% lower at ₹1,128 per equity share at around 11:37 am.

The scrip fell more than 2% in the last week and 3% over the month. On a year-to-date basis, it lost over 3%.

While the stock touched a 52-week high of ₹1,220.90 on January 7, 2026, it reached a year’s low of ₹930.10 apiece on March 11, 2025.

Q3 results

The company posted a 38% year-on-year (YoY) increase in its net profit to ₹385 crore for the December quarter of FY26, compared to ₹279 crore it logged in the corresponding period of the previous fiscal year.

The country's leading tea, coffee and other ready-to-drink beverages and food products maker saw a 15% annual growth in its revenue from operations to ₹5,112 crore during the quarter under review. It had clocked a revenue of ₹4,444 crore in the third quarter of the 2024-25 fiscal year (Q3FY25).

Its top-line growth was driven by an underlying growth in its India business (13% YoY), international business (11%) and non-branded business (20%), the Tata Group company said in a regulatory filing on Tuesday.

At an operational level, its EBITDA (earnings before interest, tax, depreciation and amortisation), also known as operating profit, stood at ₹721 crore, marking a 28% annual increase.

Furthermore, its EBITDA margin expanded by 140 basis points (bps) to 14.1% for Q3FY26.

"Improvement in operating performance of branded business aided by lower tea cost inflation led margin expansion in India, partly offset by coffee cost inflation in the international business and higher investments behind brands," the company said.

What analysts said

In a note, analysts at Goldman Sachs said Tata Consumer Products reported strong earnings for the third quarter of FY26 across all segments, ahead of estimates, adding that its India business, which saw a volume growth of 15%, led to “firing on all cylinders”. Furthermore, the recovery in its consolidated EBITDA margin was driven by both its India and international businesses.

Analysts at Nomura maintained an overall double-digit sales growth guidance as the company’s core business continued with strong momentum. Its India business grew 29% YoY, and the analysts maintained a 30% guidance on that front. Furthermore, the firm saw its margins improve, and Nomura stated that it will keep inching up. It gave guidance on profit growth ahead of sales growth.

CLSA analysts said that the Tata Group firm’s net sales growth of 15% YoY, driven by a 15% underlying volume growth for the India-branded business, was in line with its guidance. Its salt business clocked 15% volume and 14% revenue growth, while Tata Sampann continued its strong growth trajectory, climbing 45%. Analysts agreed with the company’s focus on quick commerce (QC) as a critical channel for the present and the future, as QC, making up 18% of its India business, saw more than 100% growth during the quarter and remained a key driver for Tata Sampann.

Additionally, the analysts at CLSA noted that Tata Consumer Products rolled out a new Go-to-Market (GTM) strategy to align with its evolving portfolio, with 80% distributor transitions completed. The company’s EBITDA growth of 28% beat its estimated 7% growth, driven largely by better-than-expected gross margin in the tea business.