Tata Consumer shares fall 5% post Q4 results; should you buy, sell or hold?

Shares of Tata Consumer Products are expected to remain in focus on April 24 after the FMCG giant posted strong Q4 results, delivering a 59 per cent year-on-year (YoY) surge in consolidated net profit to Rs 345 crore, beating Street estimates. Revenue for the March quarter rose 17 per cent to Rs 4,608 crore, compared to Rs 3,927 crore in Q4FY24.

Strong Q4 show beats Street estimates

Tata Consumer’s performance came in ahead of Zee News projections, which had pencilled in Rs 322 crore in PAT and Rs 4,556 crore in revenue. Sequentially, net profit was up 24 per cent, while revenue grew 3.7 per cent from Rs 4,444 crore in Q3FY25.

India business continued to be the main growth driver, with revenue rising to Rs 2,937 crore in Q4 from Rs 2,834 crore in the previous quarter and Rs 2,480 crore a year ago. The international business also held steady at Rs 1,194 crore, compared to Rs 1,192 crore in Q3 and Rs 1,052 crore in Q4FY24.

EBITDA margin impresses; tea volumes soft, salt on track

While India tea volumes grew just 2 per cent YoY, missing estimates, salt volumes met expectations with a 5 per cent rise. Elevated global coffee prices, particularly Robusta and Arabica (up 97 per cent and 65 per cent YoY, respectively), remained a cost pressure.

However, the company’s EBITDA performance stood out, prompting Nuvama to retain its ‘Buy’ call while increasing the target price to Rs 1,335 from Rs 1,255. The brokerage slightly lowered FY26 and FY27 EPS estimates by 1.3 per cent and 1.7 per cent but said overall fundamentals remain strong.

Dividend payout proposed at Rs 8.25/share

The board has proposed a dividend of Rs 8.25 per share for FY25. If approved at the 62nd AGM, the dividend will be paid on or after June 21, 2025.

Stock underperforms in FY25 despite long-term gains

Tata Consumer shares have delivered 43 per cent and 253 per cent returns over the last three and five years, respectively. However, in the past one year, the stock declined 0.76 per cent, underperforming the sector and broader indices including Nifty50 and Sensex.