Tata Consumer Products share price falls over 4% after Q4 results. Should you buy or sell?

Tata Consumer Products share price declined over 4% in early trade on Thursday after the Tata Group company announced its Q4 results. Tata Consumer Products shares fell as much as 4.54% to ₹1,098.60 apiece on the BSE.

The Tata Group FMCG major, Tata Consumer Products reported a 59% year-on-year (YoY) growth in its Q4FY35 consolidated net profit to ₹345 crore from ₹216.63 crore in the same period last year.

The company’s revenue from operations increased 17.2% to ₹4,602.3 crore in the quarter ended March 2025 from ₹3,927 crore in the March 2024 quarter.

At the operational level, earnings before interest, tax, depreciation and amortisation (EBITDA) in Q4FY25 fell 1.4% YoY to ₹620.8 crore, while EBITDA margin declined 256 bps YoY to 13.5%.

From a long-term perspective, the company guided for double-digit revenue growth with EBITDA growing ahead of the top line.

While India Tea volume growth of 2% YoY was slightly below analysts’ expectations, margins are expected to recover going ahead.

“We expect margin to recover in the Indian beverage business due to price hikes in tea and salt, stabilization of the input prices, and early signs of better tea crop growth this harvest season (Mar/Apr’25). International business is expected to continue delivering healthy operating performance. The premium portfolio in the RTD segment continues to gain traction,” Motilal Oswal Financial Services said.

The continued synergy benefits from the integration of Capital Foods and Organic India are expected to be a key driver of growth for the Indian food business, it added.

The brokerage firm projects Tata Consumer Products to deliver a compounded annual growth rate (CAGR) of 8% in revenue, 13% in EBITDA, and 20% in profit after tax (PAT) over FY2025–FY2027.

It reiterated a ‘Buy’ rating on Tata Consumer Products shares and increased the target price to ₹1,360 per share.

Nuvama Institutional Equities has marginally reduced its FY26E and FY27E EPS estimates by 1.3% and 1.7%, resulting in an increased Tata Consumer Products share price target of ₹1,335 from ₹1,255 earlier. Overall, the brokerage has maintained a ‘Buy’ on the Tata Group stock.

Technicals

Tata Consumer Products share price has formed a 25-week rectangle on weekly charts and recently broke above the rectangle high of ₹1,072, said Anshul Jain, Head of Research at Lakshmishree Investments.

“Tata Consumer Products share price has since consolidated comfortably above the neckline with supportive price and volume action. For a follow-through rally, sustaining above ₹1,160 is crucial — this would open the path toward the ₹1,240 zone. Meanwhile, any dip toward ₹1,072 presents a buying opportunity for positional traders,” said Jain.

At 9:25 AM, Tata Consumer Products share price was trading 2.65% lower at ₹1,120.35 apiece on the BSE.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.