Tata Consumer Products shares will remain in focus after it reported its quarterly earnings for Q4 FY26. The analysts at Nuvama Institutional Equities remained sceptical despite a surge in net profit and revenue due to El Niño affecting the rural economy in the near term.
Nuvama on Tata Consumer Products
Nuvama cut the target price to Rs 1,435 from Rs 1,500, looking at an upside of 22% from the current market price. The brokerage house maintained its ‘Buy’ rating on the stock. However, it said that El Niño remains a risk for rural consumption in the second half of FY27.
“We cut FY27 and FY28 EPS by 4% each due to higher advertising and promotion (A&P) spends, increased packaging and LPG costs,” said Nuvama.
Tata Consumer’s India business volumes rose 16% YoY. Salt revenue and volumes expanded 12% and 13% even as tea revenue inched down 1% YoY due to price cuts, while volumes grew 4% YoY. Sampann revenue shot up 69% YoY.
Tata Consumer Q4 FY26 results
The company posted a jump of 21.53% year-over-year in consolidated net profit to Rs 419.08 crore in the fourth quarter of FY26. It has surged 18% YoY in revenue from operations to Rs 5,433.62 crore in Q4 FY26.
On the operating front, EBITDA rose 27% YoY to Rs 796 crore in Q4 FY26, while EBITDA margin expanded to 14.6%.
India business delivered 16% underlying volume growth (UVG). In India, tea volumes grew 4% with revenue marginally declining as the benefit of lower input costs was passed on to consumers. The coffee business maintained strong momentum, posting 20% revenue growth during the quarter.
The company said Tata Starbucks continued to deliver positive same-store sales growth during the quarter. The brand footprint stands at 502 stores across 80 cities.
For the whole year of FY26, the company’s consolidated net profit increased 20% YoY to Rs 1,542.30 crore, and its revenue from operations surged 15.17% YoY to Rs 20,290.43 crore in FY26 over FY25.
Tata Consumer Products share price performance
The share price of Tata Consumer surged by about a per cent in the last five trading days. The stock has risen 8% in the past one month and 2% in the last six months. Tata Consumer’s stock price has moved 2.7% over the last one year.