Tata Consumer Share Price Rises 3% as Q1 Profit Sees 15% Jump — Here’s What Drove the Surge

Market Performance

• Tata Consumer share price opened strong on July 24, jumping 3.3% in early trade.
• The stock was trading at ₹1,098.1 on the NSE at 9:16 AM, marking a significant uptick from the previous session.
• This surge came after the company announced better-than-expected earnings for Q1 of FY26.

Main News

Tata Consumer Products Ltd (TCPL), the owner of Tata Tea, reported its Q1 FY26 results, showing a 15% YoY rise in net profit. This positive performance lifted investor sentiment, leading to an early morning rally in the Tata Consumer share price.

The company’s growth comes despite challenges in the non-branded business segment, particularly due to falling coffee prices. However, the overall revenue and profit trajectory stayed on the upward path, bolstered by robust performance in the branded tea segment.

Company Financials

Revenue

• ₹4,778.91 crore in Q1 FY26
• 10% increase YoY from ₹4,352 crore in Q1 FY25

EBITDA (Earnings Before Interest, Tax, Depreciation & Amortization)

• EBITDA declined by 8% on a consolidated basis
• The fall was primarily due to coffee price corrections in the non-branded segment

EBITDA Margins

• Margins declined by over 250 basis points
• The impact was driven by input cost fluctuations, especially in coffee

Net Profits

• ₹334 crore net profit in Q1 FY26
• Up from ₹290 crore in Q1 FY25
• Represents a 15% YoY growth

Segment Insights

• Branded Tea Business:
  Facing cost pressures earlier, the segment is now showing signs of margin recovery, driven by:
  • Falling auction prices
  • Improved cost inflation pass-through
• Non-Branded Business:
  • Impacted by corrections in coffee prices
  • This segment contributed to the EBITDA shrinkage

Tea Prices – A Critical Factor

• Tea prices form a major revenue contributor for Tata Consumer.
• Prices had surged in 2024 due to:
  • Adverse weather conditions
  • Supply chain disruptions
• However, the current data reveals a 13% YoY decline in tea auction prices.
• This drop is expected to ease margin pressures, especially from Q2 onwards.

Company Overview

Tata Consumer Products Ltd is a leading FMCG player in India, known for its wide range of beverages and food products, including Tata Tea and Tata Salt.

The company operates across:

• Branded segment (tea, salt, ready-to-drink beverages)
• Non-branded segment (bulk coffee and tea exports)

Despite facing headwinds in some areas, the company continues to report consistent revenue growth and profitability improvements.

Summary of the Article

• Tata Consumer share price surged 3.3% following a solid Q1 earnings report.
• Net profit rose 15% YoY to ₹334 crore, and revenue jumped 10% to ₹4,778.91 crore.
• The EBITDA dropped 8%, with margins declining over 250 basis points, largely due to coffee price volatility.
• Tea auction prices are now down 13% YoY, which could positively impact future margins.
• The company’s branded tea segment is showing early signs of recovery in profitability.