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Informist, Saturday, Jan. 24, 2026

 

By Afra Abubacker

 

NEW DELHI - Tata Consumer Products Ltd. is expected to report a sharp on-year rise in its consolidated net profit for the December quarter on the back of higher margins and steady volume growth across its salt and food businesses. A recovery in rural demand and improved urban sentiment following the cut in Goods and Services Tax rates, along with easing trade disruptions, are seen as tailwinds for the consumer goods sector.

 

Tata Consumer's consolidated bottom line for the December quarter is expected to rise nearly 44% on year and 1.2% sequentially to INR 4.09 billion, according to the average of estimates from 10 brokerages. The highest net profit estimate is INR 4.53 billion by Nirmal Bang Equities Pvt Ltd. and the lowest is INR 3.65 billion by YES Securities (India) Ltd.

 

Brokerages expect the consumer major's topline growth to be led by the food portfolio. Nirmal Bang expects Tata Consumer to post over 16% on-year growth in revenue, with high single-digit volume growth in India Foods--comprising Tata Salt, Tata Sampann, Tata Soulfull, and Capital Foods, while the India Beverages business--including Tata Tea, read-to-drink products, and Organic India--is projected to grow in low single digits.

 

The company's consolidated top line for the reporting quarter is likely to rise almost 13% on year and 1% on quarter to INR 50.15 billion, according to the average of the estimates. The highest revenue estimate is INR 51.65 billion by Nirmal Bang and the lowest is INR 49.59 billion by Systematix Shares and Stocks (India) Ltd. Nirmal Bang is optimistic on the company as it aims to improve the run rate of its acquisitions by expanding Capital Foods into untapped food services channels and widening Organic India's presence across major modern trader banners and pharmacy chains.

 

Nomura expects the company's volumes to improve sequentially, led by double-digit growth in its salt business and low-single-digit expansion in tea volumes. However, it expects pricing-led growth to ease in the December quarter as the price increases for salt last year will stop having an impact now and also due to some price cuts for tea. The brokerage cautioned that Capital Foods could see some impact of GST changes and US tariffs.

 

Tea prices are down 8% on year and flat sequentially, Nuvama said, and noted prices are likely to "remain benign", supporting the margins of the country's second-largest tea brand. Nuvama expects a mixed performance among the acquired businesses in the reporting quarter. It estimates Capital Food's revenue to rise 6% on year, while Organic India is seen posting a much stronger 30% on year growth. Together, these two acquisitions are expected to generate revenue of INR 3.5 billion, up 13% on year, but down 2% from the trailing quarter.

 

For the India Foods business, Nuvama expects volumes to grow 10% on year, supported by packages of higher weights, market share gains, and sales of value-added salts. The Sampann brand, which houses pulses, spices, and other staples, is expected to grow 25-30% on year in revenue terms. Nuvama also expects Tata Consumer's international business revenue to grow 9% on year in constant currency terms.

 

Tata Consumer's earnings before interest and tax margin for the December quarter is expected to rise nearly 22% on year and over 4% sequentially to INR 7.04 billion, according to the average of estimates.

 

On Friday, shares of Tata Consumer closed nearly 2% lower at INR 1,153.50 on the National Stock Exchange. The shares have fallen nearly 4% since the company's September quarter results. Tata Consumer will detail its earnings for Oct-Dec on Tuesday.

 

Of the 11 brokerage reports on the company available with Informist, nine have a 'buy' recommendation on the stock with an average target price of INR 1,372. This is 19% higher than the current market price. The remaining two brokerages have a 'hold' recommendation on the stock with an average target price of INR 1,210.

 

Following are the Oct-Dec earnings estimates for Tata Consumer from 10 brokerages in descending order by the estimate of net profit in INR billion:

 

Brokerage	Net sales	Net profit	EBITDA
Nirmal Bang Equities Pvt Ltd	51.65	4.53	7.39
Nomura Equity Research	49.58	4.49	6.98
Systematix Shares and Stocks (India) Ltd	49.59	4.15	6.97
Kotak Securities Ltd	50.01	4.10	7.11
JM Financial Institutional Securities Pvt Ltd	50.00	4.05	7.15
Mirae Asset Sharekhan Ltd	49.96	4.04	--
Motilal Oswal Financial Services Ltd	49.77	3.99	7.02
Elara Securities (India) Pvt Ltd	49.59	3.97	6.92
Nuvama Wealth Management Ltd	49.99	3.96	6.90
YES Securities (India) Ltd	51.33	3.65	6.93
Average	50.15	4.09	7.04

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Edited by Avishek Dutta

 

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