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  5. Tata Consumer Products shares jump 7% after Q2 results; analysts see price hikes supporting H2 growth

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Tata Consumer Products shares jump 7% after Q2 results; analysts see price hikes supporting H2 growth

image Ahana Chatterjee
By Ahana Chatterjee

4 min read | Updated on October 27, 2026, 10:57 IST

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SUMMARY

Tata Consumer Products consolidated net profit (attributable to owners) surged 16% YoY to ₹469 crore in the July to September quarter of FY27.

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At 10:47 AM, Tata Consumer Products shares were trading at ₹986 apiece on the National Stock Exchange, gaining 5.29%. | Image: Tataconsumer.com

Shares of Tata Consumer Products rallied 6.7% to touch an intraday high of ₹999.50 apiece on Tuesday, October 27, a day after the firm reported a positive quarter led by volume growth in domestic business, improved margins, price increases and effective input cost management.
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The fast-moving consumer goods (FMCG) company posted a 16% year-on-year (YoY) rise in its consolidated net profits while margins remained under pressure with muted growth.

Tata Consumer Products consolidated net profit (attributable to owners) surged 16% YoY to ₹469 crore in the July to September quarter of FY27, compared to ₹404 crore in the corresponding quarter of the previous financial year.

Its revenue from core operations advanced 14% YoY to ₹5,661 crore in the September quarter of FY27, in comparison to ₹4,966 crore in the same quarter of the previous financial year.

NSE filings showed that Tata Consumer Products’ earnings before interest, tax, depreciation, and amortisation (EBITDA) or operating profit improved 16.5% YoY to ₹783 crore in the second quarter of FY27, from ₹672 crore in the same period a year ago.

Also read: Maruti Suzuki Q2 results: Net profit likely to fall up to 12% YoY due to higher input costs; key focus on Q2 sales volume and EBITDA margin

“We delivered our second consecutive quarter of double-digit revenue growth in FY27, backed by strong underlying volume growth in India business. This volume-led performance, together with disciplined execution, drove 18% EBITDA growth,” said Sunil D’Souza, Managing Director & CEO of Tata Consumer Products.

The EBITDA margins expanded 31 basis points to 13.83% in the September quarter, compared to 13.52% in the same period last year, as per the consolidated financial statements.

The net profit margins rose to 8.3% in the period under review, from 8.19% in the same period a year earlier. While the operating profit margins expanded 62 basis points to 11.13%, from 10.51% a year earlier.

On the segmental front, the company’s revenues from its domestic business advanced 17.4%, while the international business income gained 6.4% in the quarter under review, in comparison to the corresponding period a year earlier.

“Our portfolio transformation continues to gain momentum. Growth businesses grew 40% and now account for 38% of the India business,” said D’Souza.

Here’s what analysts said

Goldman Sachs analysts said Tata Consumer Products delivered strong double-digit volume growth and high-teens EBITDA growth despite a challenging environment. They expect pricing to accelerate significantly in the India business in the second half of the year (H2 FY27). The salt business continues to report strong growth, with price increases expected to further accelerate revenue growth in H2. Tea performance remained muted, but the analysts expect a recovery in the second half.
Analysts from Jefferies said the FMCG major’s Q2 performance was ahead of expectations despite inflationary pressures in tea and salt. They noted that product price hikes should support growth ahead.
In a note on Tuesday, Citi analysts said the growth momentum of the company remains sustained, with a clearer path to sequential margin recovery in H2. They noted that pricing actions across multiple categories are yet to fully reflect in the business, which should help mitigate margin pressures in India.
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They further noted that stronger profitability in the international and non-branded businesses is also expected to support consolidated margins. Citi estimates a 50 basis point expansion in EBITDA margin in H2.

At 10:47 AM, Tata Consumer Products shares were trading at ₹986 apiece on the National Stock Exchange, gaining 5.29%. According to NSE data, the company has a market capitalisation of ₹97,579.28 crore.

Disclaimer: This article is written purely for informational purposes and should not be considered investment advice from Upstox. Securities mentioned are illustrative and not recommendations. Please consult a financial advisor before making any investment decisions.

About The Author

image Ahana Chatterjee
Ahana Chatterjee is a business journalist with 7 years of experience across several leading news platforms. At Upstox, she covers stock markets and corporate news.

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