Tata Consumer Products shares surged over 6 percent on Tuesday, emerging as the top gainer on the Nifty 50 after the FMCG company reported better-than-expected earnings for the fiscal second quarter. Strong revenue growth, higher volumes in its India business and continued momentum in newer categories supported the company's Q2 performance.
Tata Consumer stock rose 6.1 percent to Rs 994 in morning trade, taking the company's market capitalisation to past Rs 98,000 crore. The stock has declined 15.9 percent so far in 2026, compared with a 13 percent fall in the Nifty 50. The rally came amid a muted broader market. At 9:50 am, the Nifty 50 was flat at 22,755.
Citi maintained its Buy rating on Tata Consumer Products but lowered its target price to Rs 1,225 per share, still implying about 31 percent upside from yesterday’s close. The brokerage highlighted the company's 14 percent year-on-year revenue growth and 17 percent EBITDA growth in the September quarter.
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India's underlying volume growth stood at 11 percent, with salt volumes rising 9 percent. Growth businesses expanded 40 percent, led by Tata Sampann and ready-to-drink beverages. However, Citi said that weakness in the tea business and input cost inflation continued to pressure domestic margins.