Tata Consumer Products slips 5% on posting Q4 results; Time to buy?

Tata Consumer share price: At 9:28 AM, Tata Consumer shares were trading 2.73 per cent lower at ₹1,119.45 per share on the BSE

Tata Consumer share price: Shares of Tata Consumer Products slipped 4.5 per cent in trade, registering an intraday low at ₹1,098.6 on the BSE. The selling pressure in the stock came after the company posted its Q4 results.

 

At 9:28 AM, Tata Consumer shares were trading 2.73 per cent lower at ₹1,119.45 per share on the BSE. In comparison, the BSE Sensex was down 0.20 per cent at 79,956.87. The market capitalisation of the company stood at ₹1,10,769.42 crore. The 52-week high of the stock was at ₹1,247.75 per share and the 52-week low of the stock was at ₹884 per share.  READ STOCK MARKET LIVE UPDATES TODAY HERE

Tata Consumer Q4 results 2025

The fast-moving consumer goods (FMCG) company released its fourth quarter (Q4FY25) results on Wednesday, after market hours. In Q4, the company's consolidated net profit stood at ₹407 crore as compared to ₹268 crore a year ago, implying a rise of 52 per cent.

 

Its revenue for the quarter under review stood at ₹4.608 crore as compared to ₹3,927 crore a year ago, up 17 per cent. However, the company's Earnings before interest, tax, depreciation and amortisation (Ebitda) stood at ₹625 crore as compared to ₹631 crore a year ago, a decline of 1 per cent. 

 

According to the company's investor presentation, Ebitda declined as margins contracted, primarily due to tea cost inflation in India and higher coffee costs in the US. This was partially offset by improved realizations in the non-branded business. Further Earnings before interest and tax EBIT declined 9 per cent year-on-year (Y-o-Y), largely driven by amortisation expenses related to acquisitions.

Tata Consumer management commentary highlights

Price calibration: The company has implemented price hikes in tea and expects margin pressure to ease going forward. The price hike has compensated for 40 per cent for Q4 and 30 per cent for FY25 of the tea cost increase. 

 

Going forward, the company is focusing on gaining back the market share through volume growth. Guided mid-single-digit volume growth in both tea and salt for FY26.   ALSO READ | Bajaj Housing Finance shares up 4% post Q4 nos; is it a good stock to buy?

 

Impact of tariffs: Since coffee is not produced in the US and is not a discretionary item, India is expected to be in an advantageous position if the US were to go ahead with its proposed import tariffs. No major competitive impact is expected; however, the impact of tariffs is yet to materialise. 

 

NourishCo: It generates 60-65 per cent of revenue from Andhra Pradesh and Eastern India. Its existing network of 40 plants offers ample growth room; expansion or capex will occur only upon a substantial demand increase.

Tata Consumer dividend 2025

The company's board has recommended a dividend of ₹8.25 per equity share of ₹1 each (825 per cent) for FY 2024-25. 

Tata Consumer Q4 results analysis: Motilal Oswal

The brokerage believes going forward, Indian business margins are likely to recover as the company has increased prices of salt and tea (staggered price hikes to mitigate cost inflation) and as there are early signs of good tea crop in March/April 2025. It reiterated 'Buy' with a target of ₹1,360 per share. 

Tata Consumer Q4 results analysis: Mirae Asset Sharekhan

"With the right strategies in place, India's beverage business is expected to see an uptick in performance in the medium term. Bridging the portfolio gap through acquisitions will help the India Foods business to post consistent double-digit growth going ahead," said Mirae Asset Sharekhan in its note. The brokerage maintained a 'Buy' recommendation with a target of ₹1,340 apiece.  ALSO READ | Syngene International tumbles 10% as Q4 profit slips; key highlights here

About Tata Consumer Products 

Tata Consumer Products is a focused consumer products company uniting the principal food and beverage interests of the Tata Group under one umbrella. The company’s portfolio of products includes tea, coffee, water, RTD, salt, pulses, spices, ready-to-cook and ready-to-eat offerings, and others. Its food portfolio includes brands such as Tata Salt, Tata Sampann, Tata Soulfull, Ching’s Secret and Smith & Jones.