Shares of came under pressure on Wednesday even after the a strong set of December-quarter numbers.
The stock ended 4.68 per cent lower at 1,131.80 on the , after hitting the day’s low of ₹1,114, compared with the previous close of ₹1,187.40.
The company reported a 38 per cent year-on-year rise in net profit for the third quarter, aided by lower tea prices, GST cuts that boosted consumption demand and strong underlying volume growth of 13 per cent in its India business.
Nuvama said Tata Consumer delivered a strong quarter, with Q3FY26 revenue up 15 per cent year-on-year in line with its expectations, while EBITDA rose 28 per cent and came in 4.5 per cent ahead of estimates. The brokerage highlighted that India branded volumes expanded 15 per cent, well ahead of its forecast of 11 per cent.
It noted that India salt revenue and volumes grew 14 per cent and 15 per cent, respectively, while India tea revenue and volumes were up 3 per cent each.
Sampann revenue surged 45 per cent year-on-year and ready-to-drink products posted strong growth despite seasonality. Nuvama marginally raised its FY27–28 earnings estimates by around 2 per cent and retained its buy call, hiking its target price to ₹1,500.
Motilal Oswal reiterated a buy call at ₹1,450, saying growth in Tata Consumer is likely to be driven by faster go-to-market execution, premiumisation, innovation and operating leverage. The brokerage expects the company to clock a CAGR of 10 per cent in revenue, 13 per cent in EBITDA and 19 per cent in profit during FY25–28.
JM Financial said Tata Consumer’s December-quarter performance was marginally better than its estimates, driven by stronger-than-expected performance in India Foods, particularly the Salt and Sampann portfolio, as well as growth in the non-branded business.
The brokerage highlighted healthy traction in growth businesses, international operations and salt, while noting that management has maintained its revenue outlook for mid-to-high single-digit growth in tea and salt and around 30 per cent growth in new categories.
On margins, JM Financial said management remains cautiously optimistic given volatility in tea and coffee prices.
While raising its earnings estimates by around 2 per cent, JM Financial retained its add rating with a revised target price of ₹1,285, noting that the stock’s valuation already captures much of the positives and could limit near-term upside.
Global brokerage Goldman Sachs said it has maintained buy rating on the stock and lifted the target price to ₹1,425 from ₹1,350, citing strong Q3 performance, accelerating salt volumes and improving prospects for an earnings recovery from FY26 on the back of tea margin recovery, price hikes in growth categories and lower net interest costs.
Jefferies, meanwhile, remained more guarded with a hold recommendation and a target price of ₹1,310, pointing to strong growth in the India business but some margin pressure in international operations.