2 weeks Ago By Neha Aravind
Tata Consumer Products Ltd. reported its March-quarter earnings late on Wednesday, beating Bloomberg consensus estimates on both revenue and profit. This, even as rising tea costs dragged on margins.
Brokerages, including Citi Research, Jefferies Equity Research, JPMorgan and Nuvama Institutional Equities, said the flagship food and beverage company of the Tata Group delivered a solid topline performance. Earnings were aided by a newly disclosed 6% Underlying Volume Growth that helped drive revenue gains.The second largest branded tea company in the world also announced a dividend of Rs 8.
25 per share for the financial year 2025. While the India business saw a decline in Ebitda due to continued tea cost inflation, analysts noted that the company is likely to see margin recovery in the second half of fiscal 2026, as commodity prices are expected to soften in the next procurement cycle starting July.Tata Consumer Products Q4 Results (Consolidated, YoY)Revenue up 17.
3% to Rs 4,608.22 crore versus Rs 3,926.94 crore (Bloomberg estimate: Rs 4,556 crore).
Ebitda down 1% to Rs 620.95 crore versus Rs 629.30 crore(Bloomberg estimate: Rs 612 crore).
Margin at 13.5% versus 16.0% (Bloomberg estimate: 13.
43%).Net profit up 59% to Rs 344.85 crore versus Rs 216.
63 crore (Bloomberg estimate: Rs 225 crore).Read the full report here. Tata Consumer Sees Tea Volume, Margin Improvement In Q2 As Input Costs EaseBrokerages On Tata Consumer Q4 EarningsCiti | Target Price: Rs 1,325 | Rating: BuyCiti retained a ‘buy’ rating on the stock and raised target price to Rs 1,325 apiece from Rs 1,200.
This implies a potential upside of 15.3%.The results were in line and highlighted that the company started disclosing its quarterly UVG, pegged at 6%, as a positive structural development.
Citi attributed the drop in Ebitda in the India business to high tea costs, adding that price hikes covered only 46% of the inflation due to downtrading.The brokerage expects near-term margin pressure to persist, but foresees a recovery in the second half of fiscal 2026, helped by commodity cost moderation. Long-term, it remains constructive on the growth story across both core categories like tea and salt and newer segments such as staples, snacks, condiments and supplements.
Citi expects 11% revenue and 23% earnings growth CAGR over financial year 2025 to 2028, and values the stock at 60 times its estimated earnings for financial year 2027.Trump Tariffs Could Aid Tata Consumer's Coffee Business, Says CEO D'SouzaJefferies | Target Price: Rs 1,100 | Rating: HoldJefferies downgraded the stock to ‘hold’ from ‘buy’ with a target price of Rs 1,100 apiece, implying a downside of 4.36%.
While revenue growth was strong, underpinned by the 6% underlying volume growth and M&A-led portfolio gains, Jefferies flagged that margins were hurt by elevated input costs, especially in tea. The brokerage had upgraded the stock as recently as January, but cited stretched valuations and continued cost pressure for its revised stance. Management commentary on tea prices turning favourable in the upcoming cycle was noted as a positive, but near-term profitability remains under strain, according to the brokerage.
The growth was also supported by the unbranded segment, which benefited from high coffee prices, though margins remained subdued across verticals, it said.HUL Q4 Preview: Volume Growth Likely Tepid, Margins Expected To Be Under PressureJPMorgan | Target Price: Rs 1,100 | Rating: NeutralJPMorgan retained a ‘neutral’ rating on the stock and raised target price to Rs 1,100 apiece from Rs 970, implying a downside of 4.36%.
The results were broadly in line with expectations. The 6% UVG and price-led gains drove organic revenue growth, but high tea cost inflation led to a 360 basis point decline in India Ebitda margin.The brokerage expects margins to recover in the second half of fiscal 2026, citing seasonal softening in tea prices and an expected good harvest.
Tata Consumer passed on around 45% of the tea cost inflation in the March quarter, while early signs of a shift toward premiumisation were visible in consumer behaviour.Nestle Q4 Preview: Analysts Expect Input Costs To Hit Margins, Profit Seen Down 8%Nuvama | Target Price: Rs 1,335 | Rating: BuyRetained a ‘buy’ rating on the stock and raised target price to Rs 1,335 apiece from Rs 1,300, implying an upside of 16.08%.
The performance was in line with expectations, but has noted a slight earnings cut of 1.3% and 1.7% for financial year 2026 and 2027, respectively.
India tea volume rose 2%, slightly below estimates, while salt grew 5%, in line with expectations. The brokerage also noted competitive pressure in Tata Sampann and warns of rising intensity in tea and salt from private labels and existing players. Strong market positioning should help mitigate some of the near-term margin pressures, Nuvama said.
Analyst OutlookAnalysts expect margins to stay under pressure in the near term but see recovery from the second half of financial year 2026 as tea costs ease. Long-term growth confidence among the brokerages remains strong, supported by steady volume gains and new category expansion. Axis Bank, HUL, Nestle, Tech Mahindra, Tanla Platforms Q4 Results Today — Earnings Estimates.
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