Tata Consumer Products: A tale of two halves with ‘growth businesses’ packing a punch

Tata Consumer Products reported a strong Q1FY27 with consolidated revenue rising 12% year-on-year to ₹5,349 crore, driven by 47% growth in its growth businesses segment (Sampann, Soulfull, RTD waters, Capital Foods/Organic India) which now contributes 36% of India business. EBITDA margin expanded 70 basis points to 13.5%, with India business delivering 13% underlying volume growth; management has guided for 50-70 basis points margin expansion in FY27. Brokerages remain positive on margin construct but flag valuation risks, with the stock trading around 54x estimated FY27 earnings.