India's Tata Consumer Products rises as growth businesses boost sentiment (updated)

Tata Consumer Products

27/07/2026 06:30

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July 27 (Reuters) - Shares of India's Tata Consumer Products TACN.NS rose as much as 2% on Monday after robust growth in its newer businesses boosted investor confidence in the company's growth outlook. 
The stock was the second biggest gainer on the Nifty FMCG Index .NIFTYFMCG in early trade, before paring gains. It was up 1.10% at 1,100.10 rupees per share as of 10:50 a.m. IST. 
Analysts noted that the company's growth businesses, which include its packaged foods brand Tata Sampann, health and wellness brand Organic India, and breakfast foods brand Soulfull, are becoming its primary growth engine, helping it move beyond its mature tea and salt portfolios. 
The growth businesses grew 47% in the first quarter to 13.14 billion rupees ($136.52 million) and constitute 36% of the company's India business.
Jefferies retained its "buy" rating on the stock, saying the management remained confident of delivering revenue growth and margin expansion in FY27 as recent price hikes begin to flow through.
The brokerage also said healthy growth in core categories such as tea and salt, alongside continued rapid expansion in growth businesses will bolster the consumer goods company's growth strategy.
PhillipCapital also maintained its "buy" rating and increased its target price to 1,350 rupees from 1,340 rupees, adding that price hikes in the salt and tea segments, along with strength in the growth businesses should drive a rebound in Tata Consumer's core India business. 
($1 = 96.2525 Indian rupees)

 (Reporting by Saikeerthi in Bengaluru; Editing by Sonia Cheema)
 ((Saikeerthi@thomsonreuters.com; (+91) 8296756080))