India's Tata Consumer warns of more price hikes if costs stay volatile (updated)

Tata Consumer Products

24/07/2026 12:34

Adds comments on price increases in paragraph 1 and 4, background in paragraphs 3 and 5, forecast in paragraph 9
By Surbhi Misra and Praveen Paramasivam

    July 24 (Reuters) - India's Tata Consumer Products TACN.NS said on Friday it could raise prices of select products if input cost volatility persists.
The company also beat quarterly profit estimates on strong growth in packaged foods and beverages, reflecting resilient rural consumption in India that is helping improve demand for consumer staples.

    However, higher commodity and packaging costs continue to weigh on margins across the sector.
"If need be, we will also make further pricing interventions because the cost has been fairly dynamic," an executive said on an earnings call. "The West Asia situation has been fairly dynamic, and costs, therefore, have also been a bit dynamic."

    Indian companies are raising product prices, shrinking pack sizes and cutting costs to protect their margins as the Middle East war has disrupted trade routes and lifted input costs globally, while a weaker rupee is adding to cost inflation.
During the first quarter ended June 30, Tata Consumer said consolidated net profit rose 28% to 4.27 billion rupees ($44.22 million). Analysts had expected 4.2 billion rupees, according to data compiled by LSEG.
Tata Consumer, home to brands such as Tata Tea, Tetley, Organic India and Ching's Secret, said its India revenue — which accounts for two-thirds of the total — climbed 13%, while its international business jumped 17%.
Total revenue rose 12% to 53.49 billion rupees, with its India salt and coffee businesses growing 7% and 24%, respectively.
Tata Consumer, which runs Starbucks in India through a joint venture, reiterated that its annual operating margin will expand 50 to 70 basis points and revenue will grow by double digits.
Earlier this week, Nestle India NEST.NS reported higher profit on double-digit growth across its product groups.

         
  
($1 = 96.5625 Indian rupees)

 (Reporting by Surbhi Misra in Bengaluru and Praveen Paramasivam in Chennai; Editing by Nivedita Bhattacharjee and Leroy Leo)
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