Tata Consumer shares jump after Q1 profit rises 15% YoY to Rs 334 crore; should you buy, sell or hold?

Shares of Tata Consumer Products Ltd (TCPL) rose on Thursday, July 24, after the Tata Tea and Himalayan Water brand owner reported an in-line performance for the first quarter of FY26, even as profitability was weighed down by higher input costs. Investor sentiment remained positive, with analysts expecting a margin recovery in the second half of the year.

The company reported a net profit of Rs 334 crore in Q1FY26, up 15 percent year-on-year compared to Rs 290 crore in the same period last year. Revenue from operations rose 10 percent to Rs 4,778.91 crore, compared to Rs 4,352 crore in Q1FY25.

However, consolidated EBITDA declined by 8 percent YoY, and EBITDA margins shrank over 250 basis points to 12.7 percent, impacted by coffee price corrections in the non-branded business.

The company said it expects branded tea margins to improve by Q3, supported by moderating auction prices and better pass-through of input costs. The management is also focused on improving performance in NourishCo and Capital Foods, which remain key growth levers.

Brokerage Views on Tata Consumer:

CLSA maintained a Hold rating and raised its target price to Rs 1,065 from Rs 1,044.

Citi retained a Buy call but cut its target price to Rs 1,275 from Rs 1,325, citing a weak Q1 and mixed profitability outlook.

Morgan Stanley stayed Overweight with a Rs 1,255 target, noting a 10% YoY revenue rise and better-than-expected margins.

JP Morgan and Jefferies both maintained Neutral/Hold ratings with a target of Rs 1,100.

Nomura reiterated its Buy call with a target of Rs 1,300.