Tata Consumer Products reported ~19% YoY Ebit growth in Q2 FY27, led by 28%/23%/14% YoY Ebit growth in the non-branded business (12%)/International business (24%)/Indian branded business (64%). Motilal Oswal expects Tata Consumer to sustain double-digit growth, driven by 25–30% growth in its growth portfolio, mid- to high-single-digit growth in the salt business, and mid-single-digit growth in the tea business.
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Motilal Oswal Report
Motilal Oswal expects Tata Consumer Products Ltd. to clock a compound annual growth rate of 10%/16%/21% in revenue/Ebitda/PAT during FY26-28. The brokerage has reiterated its Buy rating on the stock with an SoTP-based target price of Rs 1,200, implying a potential upside of 28% from the reports market price.
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The brokerage highlighted that Tata Consumer Products reported ~19% YoY Ebit growth in Q2 FY27, led by 28%/23%/14% YoY Ebit growth in the non-branded business (12%)/International business (24%)/Indian branded business (64%).
Motilal Oswal expects Tata Consumer to sustain double-digit growth, driven by 25–30% growth in its growth portfolio, mid- to high-single-digit growth in the salt business, and mid-single-digit growth in the tea business.
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Starbucks India is also expected to contribute through improving same-store sales and accelerated store expansion. Deeper quick commerce penetration, International business recovery, and AI-led (Artificial intelligence) initiatives across sales and operations are expected to further support revenue growth and margin expansion.
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