Shares of Tata Consumer were trading in the red on Friday ahead of its second-quarter results on Friday.

What Happened: Motilal Oswal expects the company’s revenue to rise 13.5% year-on-year to ₹4,238 crore, led by higher growth from new businesses. It expects the company’s quarterly profit, however, to shrink around 3.6% to ₹337 crore.

Tata Consumer’s EBITDA margin is likely to contract to around 13.8% in Q2FY25 versus 14.4% in Q2FY24, the brokerage said.

The brokerage added that the Tata Group firm’s capital foods and organic segments are expected to clock margin expansion. On the other hand, high costs are expected to weigh on the Indian tea business, it added.

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According to Nirmal Bang’s calculations, revenue is estimated to see around 19% rise to ₹4,446 crore and profit is likely to inch up by 2.9% to ₹359 crore. It pegs EBITDA at around ₹689 crore and its EBITDA margin somewhere around 15.5%, the brokerage added.

“While we expect volume growth to be in low single-digits for the India Beverages business after muted growth in the last 2 quarters, the India Foods business is projected to record strong low double-digit growth, broadly in line with the previous quarter,” Nirmal Bang noted.

Price Action: Tata Consumer was down 1.17% to ₹1,077.40 on Friday morning.

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