Tata Consumer's rich valuation needs growth to pick up

Tata Consumer Products Ltd’s consolidated Ebitda increased almost 28% year-on-year in the December quarter (Q3FY26) to ₹721 crore, with its margin expanding 140 basis points (bps) to 14.1%.

- Manish Modi [e-mail]

The growth rate looks impressive partly because Q3FY25 profitability had suffered due to high input prices of tea, which were passed on in Q4FY25.

The volatility in the tea business has forced Tata Consumer to stay focused on the performance of ‘growth’ businesses--the branded segments other than tea and salt. They include Tata Sampann, Tata Soulfull, ready-to-drink (RTD) products (Tata Gluco+, Tata Copper+, Himalayan), Capital Foods (Ching’s Secret and Smith & Jones) and Organic India.