Tata Consumer faces ₹2,620 crore tax demand; Goldman Sachs upgrades stock 

The shares of Tata Consumer Products Limited were trading at ₹1,063.70 up by ₹71.45 or 7.20 per cent on the NSE today at 11.52 am.

Tata Consumer Products Limited has received an income tax demand of ₹2,620.88 crore from the Assistant Commissioner of Income-tax, Circle 4(1), Kolkata, according to a regulatory filing on April 1, 2025. The assessment order, issued under section 143(3) of the Income-tax Act, pertains to the financial year 2021-22 and includes interest on the demanded amount.

The company stated in its filing that it believes “the aforementioned demand is not maintainable” and plans to appeal against the order. Tata Consumer does not anticipate any immediate impact on its financials or operations.

In a separate development, Goldman Sachs has upgraded Tata Consumer Products to “Buy” from its previous rating and raised the target price to ₹1,200 from ₹1,040. The investment bank expects the company to return to strong earnings per share (EPS) growth over the fiscal years 2025-27.

Goldman Sachs cited several factors supporting their positive outlook, including expected recovery in tea margins through price hikes, strong innovation, distribution expansion in growth businesses, and lower net interest costs as acquisition debt is paid down.

While competitive intensity remains a concern for Tata Consumer Products, Goldman Sachs believes “the worst is likely behind” the company. The stock upgrade comes at a time when the company is navigating tax challenges while positioning itself for growth in its core business segments.