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Robust revenue growth, margin recovery ahead for Tata Consumer Products

While most brokerages have built in healthy revenue and profit delivery by the company over the next few years, the stock may not see much upside given high valuations

Tata consumer products, Tata tea, tata group
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While revenue growth was robust, the operating profit of the India business fell 6 per cent due to rising tea costs while at the international level, the metric fell 15 per cent due to higher coffee prices and expenses.

Ram Prasad Sahu

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Price hikes, lower input costs, and double-digit growth are major positives for fast-moving consumer goods (FMCG) major Tata Consumer Products, going into the financial year 2025-26 (FY26). Given that the company has been executing well on the distribution and innovation (new products) fronts, the Street expects it to maintain a robust growth trajectory going ahead.
 
While most brokerages have built in healthy revenue and profit delivery by the company over the next few years, the stock may not see much upside given high valuations. At 83.5 times its FY26 earnings estimates, it is the most expensive stock in the FMCG