Tata Consumer Q3 review: Brokerages upbeat on execution-led growth story

Tata Consumer Q3 review: In Q3, Tata Consumer Products Ltd (TCPL) reported a 38 per cent increase in consolidated net profit (attributed to owners) to ₹384.61 crore in Q3, as compared to ₹278.88 crore

Tata Consumer Q3 review: Brokerages have remained bullish on Tata Consumer Products’ medium-term story, citing that the business is becoming more execution-led and predictable, with growth increasingly coming from profitable core and faster-growing adjacencies (RTD, Sampann, etc.) rather than dependence on one category.

 

The company released its December quarter (Q3FY26) results on Tuesday, during market hours. However, at 9:18 AM, Tata Consumer share price was down 2.78 per cent at ₹1,154.9 per share on BSE. In comparison, BSE Sensex was up 0.53 per cent at 82,295.38.

Tata Consumer Products Q3 results highlights:

In Q3, Tata Consumer Products Ltd (TCPL) reported a 38 per cent increase in consolidated net profit (attributed to owners) to ₹384.61 crore in Q3, as compared to ₹278.88 crore a year ago. 

 

 

Its revenue from operations rose by 15.04 per cent to ₹5,112 crore in the December quarter of FY'26. It was at ₹4,443.56 crore in the year-ago period. Check detailed results here 

Brokerages’ view on Tata Consumer Products

Motilal Oswal Financial Services | Buy | Target cut to ₹1,450 from ₹1,475

The brokerage expects near-term margin expansion to be driven by easing tea prices and volume recovery, while over the medium term, it will be supported by portfolio premiumisation, new product launches, and scale-up in growth businesses, including RTD, Tata Sampann, Capital Foods and Organic India, which collectively contributed 30 per cent of revenue in Q3.

 

Further, it believes the company's growth will be fueled by effective go-to-market (GTM) execution, enabling faster expansion of high-growth businesses, combined with portfolio premiumization, higher innovation-to-sales ratio, and improved operating leverage. The brokerage forecasts a 10 per cent revenue compound annual growth rate (CAGR), 13 per cent Earnings before interest, tax, depreciation and amortisation (Ebitda) CAGR, and 19 per cent profit after tax (PAT) CAGR during FY25–FY28. 

ICICI Securities | Add | Target: ₹1,300

ICICI Securities noted that TCPL’s recent performance underscores a shift toward a more consistent, execution-led growth phase, reminiscent of an earlier period where outcomes were driven by delivery rather than modelling assumptions. 

 

The brokerage highlighted that growth is increasingly being fueled by salt (the profitable segment) and adjacencies such as staples, nutrition-led foods and ready-to-drink beverages, which reduces reliance on any single category and strengthens business durability. Emkay also pointed to the steady scaling of newer platforms like Sampann and RTD (ready-to-drink) as evidence of improving execution across the portfolio. 

 

While competitive intensity remains elevated in certain segments, the brokerage believes management's focus on execution, innovation and cost control supports a more predictable earnings profile. The brokerage remains constructive on the medium-term outlook.

 

Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers discretion is advised.