India is strengthening its dominant position in global coffee and tea markets, driven by rising demand for value-added products such as instant coffee and packaged teas. Between April and February FY26, coffee exports surged 20% year-on-year to $1.86 billion, while tea exports grew 11% to $934.9 million.
This robust growth trajectory, underpinned by premium product innovation, sustainability practices, and geographic diversification, positions the sector for sustained expansion. However, geopolitical risks and commodity price volatility remain key challenges that require strategic navigation.
Here are two stocks to buy or sell as recommended by Raja Venkatraman of NeoTrader for today:
Best stocks to buy today (All Buy trades are rates of Equity & Sell rates are based on F&O)
CCL Products (India) Ltd: Buy above ₹1,070 | Stop ₹995 | Target ₹1,220 (multiday)
Tata Consumer Products Ltd: Buy above ₹1,060 | Stop ₹995 | Target ₹1,180 (multiday)
Export performance and market leadership
India's coffee and tea sectors have demonstrated remarkable resilience and growth momentum in FY26. The coffee export milestone of $1.86 billion by February FY26 represents a significant achievement, with the sector consistently recording over $1 billion in annual exports for the fifth consecutive year. The Coffee Board of India attributes this success to a strong rebound from the previous record of $1.8 billion, indicating sustained and accelerating demand from global markets.
Tea exports have similarly performed well, reaching $934.9 million by February FY26, representing 11% year-on-year growth. The cumulative performance reflects India's exceptional performance in 2025, when tea exports reached a record 280 million kg with export earnings of approximately ₹8,488 crore. Orthodox tea exports specifically surged 20% to 128.47 million kg, demonstrating the growing preference for premium tea varieties.
Key market drivers and competitive advantages
• Sustainability and premium positioning: Indian coffee's competitive advantage rests on distinctive production characteristics that differentiate it in global markets. The sector's emphasis on Geographical Indication (GI) products—such as Darjeeling, Nilgiri, Araku, and Coorg—provides significant upside potential. These GI-protected varieties can command substantial premiums in global markets, yet their potential remains underutilized due to fragmented marketing, limited international visibility, and weak enforcement mechanisms.
• Strong global demand momentum: Global demand for premium coffee and tea remains robust, reflecting rising affluence in developed economies and expanding middle-class consumption in emerging markets. This trend, combined with India's manufacturing scale and cost advantages, positions the sector favourably for capturing an incremental share of the global instant coffee market.
Challenges and risk factors
• Geopolitical and logistics disruptions: The Tea Association of India has cautioned that any disruption in traditional markets may adversely affect export volumes, logistics, payment cycles, and price realizations.
• Commodity price volatility and cost pressures: While FY26 has been exceptionally strong, the sectors remain exposed to global commodity price fluctuations. Coffee prices on global exchanges have experienced significant volatility, driven by weather patterns in producing regions, currency fluctuations, and speculation.
• Dependency on bulk trade and fragmentation: Despite value-added product growth, the sector remains substantially dependent on bulk commodity exports, which offer lower margins and greater price vulnerability. The fragmented nature of tea and coffee production, with numerous small-scale farmers and estates, limits collective bargaining power and inhibits rapid value-chain upgrades.
Five tea and coffee stocks to watch for 2026
1. Tata Consumer Products Ltd
Market position: India's largest diversified beverages and foods company with a market capitalization of ₹1,04,508 crore.
Q3 FY26 performance: Tata Consumer demonstrated exceptional strength with 15.04% year-on-year revenue growth to ₹5,112 crores, crossing the ₹5,000 crore quarterly milestone for the first time. Consolidated net profit surged 37.91% year-on-year to ₹384.61 crores, reflecting strong operational execution despite margin pressures.
2. CCL Products (India) Ltd
Market position: India's leading instant coffee manufacturer and primary exporter, with a market capitalisation of ₹13,633 crore. Represents India's largest contributor to the global instant coffee supply.
Q3 FY26 performance: CCL Products delivered stellar results with 38.52% year-on-year revenue growth to ₹1,050.56 crores. Consolidated net profit surged 59.06% year-on-year to ₹100.27 crores, demonstrating exceptional profitability leverage on revenue growth.
3. Bombay Burmah Trading Corporation
Market position: Diversified business conglomerate with a significant tea and coffee portfolio, market cap ₹9,892 crores. Historical player in the Indian beverage sector with substantial land holdings.
Q3 FY26 performance: Stock has underperformed significantly, with a 1-year return of -20.03% and a 6-month return of -23.64%, trading near 52-week lows.
4. Goodricke Group Ltd
Market position: Established tea company with premium brand portfolio and tea estate assets. Market cap of ₹340 crores reflects a smaller scale.
Q3 FY26 performance: Reported net profit of ₹8.04 crores with revenue of ₹306.37 crores, demonstrating profitable operations despite a smaller scale. The company successfully transformed from a loss-making position to profitability within the year.
5. McLeod Russel Ltd
Market position: Small-cap tea company with operations in Assam and Darjeeling. Market cap ₹229 crores reflects micro-cap classification.
Q3 FY26 performance: McLeod Russel delivered a mixed financial performance in Q3 FY26, highlighting strong topline recovery masked by severe margin and profitability pressures. The company reported a 20.21% year-on-year increase in net sales to ₹445.45 crores. However, it posted a consolidated net loss of ₹36.41 crores for the quarter. While this represents a 58.3% year-on-year improvement compared to the ₹87.33 crore loss in Q3 FY25, it marks a sharp quarter-on-quarter deterioration from the ₹29.06 crore profit posted in Q2 FY26. Operating margins collapsed to a mere 1.74% due to elevated employee expenses and operational inefficiencies.
Looking at how the stocks are placed over a larger timeframe, we find that the stocks are underperforming the Nifty, but some stocks are seen showing a rebound, and the chart compares. We have listed two stocks from this sector
CCL (Cmp ₹1,056)
Why it’s recommended: CCL Products (India) Limited, established in 1994 and headquartered in Hyderabad, is the world’s largest exporter of instant coffee and a prominent private label manufacturer. It serves over 110 countries with a wide range of coffee products, including spray-dried, freeze-dried, and roasted coffee, under the "Continental" brand. Looking ahead, there seems to be some interest in Indian coffee exports, as the quality of production is seen as stepping up considerably. India was the world’s seventh-largest coffee grower in FY24, with robusta accounting for about 72% of total production. Currently, the sector is at an inflexion point as any disruption in these traditional markets may affect export volumes, logistics, payment cycles and price realisations.
With the dependence on imports, the Government has provided; however, the situation of war, as well as the monsoon, will have an upper hand. To get some perspective, we decided to get a bird ’s-eye view across multiple time frames. Now, the geopolitical tensions have driven up prices to generate some upward momentum.
However, we could now look at the newfound momentum is seen building up as volumes are seen picking up in the counter. The trades are holding on to the higher levels and are using every dip as a buying opportunity. The momentum is seen holding above key levels, indicating that the upward drive in the counter since Jan 2026 appears robust. The trends are indicating the strong and is awaiting some encouraging triggers that can push for some upside in the coming days. As overall market conditions remain subdued, we have not yet seen the counter demonstrate a thrust to higher levels. As the RSI is flashing a revival of upward momentum, we can now consider the possibility of continued upward action. With the positive tailwind from the recent development, we can note that the strong closing above the trendline could generate a bullish momentum.
Key metrics:
P/E Ratio: 1,831.87
52-week high: ₹1,111
Volume: 923.06K
Technical analysis: Support at ₹900 | Resistance at ₹1,300.
Risk factors: Reliance on government subsidies, input cost volatility, and a highly leveraged financial structure.
Buy: Above ₹1,070.
Stop loss: ₹995.
Target price: ₹1,280. (Three months)
TATACONSUM (Cmp ₹1,048.50)
Why it’s recommended: Tata Consumer Products Ltd (TCPL) is a leading Indian FMCG company and part of the Tata Group, specializing in food and beverages with a strong global presence. Formed by merging Tata Chemicals' consumer business with Tata Global Beverages, it is the world's second-largest tea manufacturer and holds leading positions in tea, salt (Tata Salt), and coffee, and is expanding into new brands like Tata Sampann. As of March 2026, the stock has declined by nearly 20% and is now attempting to stabilise, with steady demand and a sector-wide turnaround bolstered by recovery in midcap names from this sector.
The multi-timeframe charts shown here demonstrate that the RSI is signalling a decline has halted and is now setting up a pathway for prices to move higher. Even on the monthly charts, we are observing that the decline is limited and is now testing at the RSI neutral zone. The monthly charts show the retest of the 50% Fibonacci support from December 2024 lows can now look to stage a revival as lower timeframes are pricing in a recovery. Given the visible attempt and the unfolding scenario where the rebound could begin to emerge over the next few months, we can consider a long opportunity. Go long now.
Key metrics:
P/E: 9.02,
52-week high: ₹742.45,
Volume: 204.49M.
Technical analysis: Support at ₹970 | Resistance at ₹1,200.
Risk factors: Commodity price volatility & availability, environmental & climate change risks and global macroeconomic & geopolitical uncertainty.
Buy: Above ₹1,060
Stop loss: ₹995
Target price: ₹1,180 (three months)
Conclusion
Trends look challenging for this sector; however, the growing demand has once again brought the Indian tea and coffee stocks into demand. With rising geopolitical tensions, the prices of the beverages are bound to escalate, thus helping the associated companies capitalise on this momentum.
Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.
Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.