Tata Consumer Products Reports 27.8% Profit Growth in Q1 FY27

Tata Consumer Products reported a 27.8% year-on-year increase in consolidated net profit to Rs 427 crore for the June quarter of FY27. Revenue grew 11.9% to Rs 5,348.8 crore, supported by performance in its high-growth portfolio, including Organic India, Capital Foods, RTD Beverages, and Tata Sampann.

While EBITDA rose 19% to Rs 730 crore, the company faced sequential margin weakness in its India business due to advertising expenses and cost inflation. To counter these pressures, the company implemented price hikes of 6% for salt and 1-2% for tea in June, with additional increases planned for the end of the second quarter.

Brokerages maintained a bullish outlook on the stock, with Nomura and Motilal Oswal setting target prices up to Rs 1,500. Analysts cited premiumization, e-commerce penetration, and innovation as the primary drivers for future growth.