Tata Consumer may find buffer in margins despite mixed Q1 results

Q1 results fell short of Street estimates. Strong growth in the company's core tea and salt businesses failed to offset the sluggish performance in its growth portfolio, dragging down overall numbers

Tata Consumer Products delivered a mixed performance in the April–June quarter (Q1), but brokerages remain optimistic about the stock, citing an improving margin trajectory. Though the stock is down 3 per cent from its monthly highs, gains on the gross margin front could limit further downside. At current levels, the stock trades at 53x its 2026–27 earnings estimates and is expected to maintain a valuation premium, backed by strong earnings growth expectations.

 

Q1 results fell short of Street estimates. Strong growth in the company’s core tea and salt businesses failed to offset the sluggish performance in its growth portfolio, dragging