India's Tata Consumer falls on mixed Q2 results, ongoing margin pressure

Tata Consumer Products

04/11/2025 06:11

** Tata Consumer TACN.NS falls 2.5% to 1,167.6 rupees

** Co beats Q2 profit estimates, but margins contract y/y on rising marketing costs, declining international business profit on coffee inflation

** Systematix says domestic tea business margins can continue revival over H2 FY26; competition could cap margin upside

** Adds competition in beverages, volatility in coffee costs could persist in near-term

** PhillipCapital says improving outlook factored in, given stock's sharp rally YTD

** Adds sustained stock momentum hinges on performance of newer portfolio items like packaged foods and margin recovery in international business

** Ambit says recent acquisitions signal aggression to build high-growth F&B portfolio; scale-up, premiumisation key for sustained margin growth

** Stock rated "buy" on avg; median PT is 1237.5 rupees, per data compiled by LSEG

** YTD, TACN gains ~28%

 (Reporting by Ananta Agarwal in Bengaluru)

 ((Ananta.Agarwal@thomsonreuters.com))