Tata Consumer Products Q1 Results: Profit Rises 15% But Misses Estimates
Tata Consumer Products Ltd’s consolidated net profit rose 15% in the first quarter of fiscal 2026, missing analysts’ estimates. The FMCG company posted a bottom line of Rs 334 crore, compared to the Rs 355-crore estimate that analysts tracked by Bloomberg had projected.
The company’s India business recorded a double-digit growth due to strong growth in core categories of tea and salt on the back of underlying volume gains. The firm’s Tata Sampann business that sells farm-based products like spices and pulses had its ready-to-drink business volume growth impacted by unseasonal rain. However, the company maintained that the business still continued ‘strong momentum’ in growth.
The firm’s international business similarly continued its growth momentum with a 5% constant-currency revenue growth. The company reported that its consolidated Ebitda declined 8% due to higher tea costs in India and coffee price corrections in the non-branded business.
The company also reported that its value-added salt portfolio continued its strong growth and grew 31% during the quarter. Its Tata Sampann portfolio grew 27% for the quarter. The company’s dry fruits and cold pressed oil ‘continued to build on their growth momentum’
Shares of TCPL closed 1.92% lower at Rs 1,062.6 apiece on the NSE, compared to a 0.63% rise in the benchmark Nifty. The stock has fallen 15.53% in the last 12 months and 16.17% on a year-to-date basis.
Analysis
The 15% rise in profit may seem impressive, but the company missed analysts’ estimates, which could impact investor sentiment. The decline in Ebitda is also a concern, driven by higher tea costs and coffee price corrections. However, the company’s strong growth in core categories and international business could be a positive sign for investors.
The company’s focus on value-added products and its efforts to build a strong presence in the international market could be key drivers of growth in the coming quarters. However, the impact of unseasonal rain on the company’s ready-to-drink business and the decline in Ebitda could weigh on investor sentiment in the short term.
In the context of the broader Indian stock market, the company’s performance is important for investors looking for sector-specific insights. The FMCG sector has been a key driver of growth in the Indian stock market, and Tata Consumer Products’ performance could have implications for investors looking to invest in the sector.
Conclusion
In conclusion, Tata Consumer Products’ Q1 results may have missed analysts’ estimates, but the company’s strong growth in core categories and international business are positive signs for investors. However, the decline in Ebitda and the impact of unseasonal rain on the company’s ready-to-drink business could weigh on investor sentiment in the short term. Investors should keep a close eye on the company’s performance in the coming quarters to gauge its growth prospects.
