Tata Consumer Products jumped nearly 3% to a day high of ₹1,123.40 on Monday, as investors cheered strong Q1 FY27 growth that beat estimates.

The rally came two trading sessions after the company reported its June quarter numbers. Net profit rose 28% year on year to ₹427 crore, comfortably ahead of the ₹410 crore analysts had pencilled in. Revenue grew 12% to ₹5,349 crore.

Margins held up as well. EBITDA climbed 19% to around ₹724 crore, taking the EBITDA margin to 13.5%, even with the company facing higher tea and coffee costs through the quarter.

What really got investors’ attention was the growth outside the core tea and salt business. Newer categories such as Tata Sampann, Capital Foods and the beverages arm NourishCo now account for 36% of India sales and grew 47% year on year.

NourishCo alone posted 41% growth, and Sampann grew 58%. Volume growth for the India business came in at 13%, well above the 8-9% range most analysts had expected. Interestingly, the stock had actually slipped when the results first came out.

Shares closed around 1.66% lower at ₹1,088 on Friday, July 24, as the market seemed more focused on near-term cost pressure than the growth underneath the numbers. Monday’s rally suggests that view has shifted.

As of the 9:45 am on Monday morning, the stock was changing hands at ₹1,106.10, up 1.66% on the day.

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