Motilal Oswal's research report onTata Consumer Products
After 5% YoY growth in FY26, India’s tea production declined 1% YoY in Jan-Aug’26 due to adverse weather conditions in Assam and West Bengal. Tea prices peaked in Jun’26 but declined by 8%/3% MoM in Jul/Aug’26, owing to the normalization of regulations imposed on Nepalese tea imports and higher production in Jun’26 (up 14% YoY). The Indian tea business of Tata Consumer Products (TATACONS) is expected to remain resilient, with the company implementing pricing actions to partly offset the cost pressure. Moreover, the company continues to expand its growth portfolio with launches across segments. The growth portfolio is emerging as the next key growth driver, gradually reducing the company’s dependence on its core tea business while reshaping the product mix and tapping into new and large market opportunities.
We expect TATACONS to clock a CAGR of 10%/15%/20% in revenue/EBITDA/ PAT during FY26-28. Reiterate BUY with an SoTP-based TP of INR1,230.
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