Tata Consumer Products (TATACONS IN) (Buy) - Strong performance; guidance unchanged despite cost headwinds

研报英文原文证据摘录

Tata Consumer Products (TATACONS IN) (Buy) - Strong performance; guidance unchanged despite cost headwinds

Global Markets Research

Tata Consumer Products TACN.NS TATACONS IN 11 May 2026

EQUITY: CONSUMER RELATED

Strong performance; guidance unchanged despite cost headwinds Rating Remains Buy

4QFY26: Above estimates; volumes/sales grew 16%/18% y-y; OPM at 14.6% as guided drive OP Target price Remains INR 1,450

growth to 27.6%; FY27 guidance of double-digit sales growth and OPM to expand 50-75bp

Closing price INR 1,176 8 May 2026Strong volume performance in core portfolio; Salt continues to surprise positively

Consolidated sales grew 18% y-y, above our forecast / Bloomberg consensus estimate of 15%/14%, with

Implied upside +23.3%India volume growth of 16% y-y. Tea volumes grew by 4% y-y, in line with our estimate, but sales declined

by 1% as the company passed on the benefits of lower tea prices to stay competitive. Going forward, Market Cap (USD mn) 12,318.6

management expects mid-single-digit volume growth in Tea to sustain, with value growth to be in the mid- ADT (USD mn) 17.3

to-high single digits. Salt volumes/sales grew 13%/12% y-y, much better than our expectation of 6%/7.5%

y-y. We expect salt volumes to grow sustainably in high-single digits. Management expects double-digit

consolidated revenue growth, with EBITDA growth to be higher. Relative performance chart

Growth business (c.30% of India) grew 33% y-y to reach INR40bn in FY26 revenue;

guidance of 30% growth maintained

Ready-to-drink (RTD/water) sales/volumes grew 23%/28% y-y. Sampann sales grew strongly at 69% y-

y, much above our estimate of 40% y-y. Management expects Sampann margins to improve to mid-teens

over the medium term. Capital Foods sales growth was flat y-y, below our estimate of 10% y-y, on GTM