Tata Consumer Products Ltd Q4FY26 Results Analysis

Management Commentary:

• Management has guided for sustained double-digit revenue growth in FY27, supported by continued momentum across core and emerging business segments.
• Shipping disruptions in the Middle East impacted international exports and transshipment operations through Dubai during March. However, management highlighted that operations normalized by April, limiting the long-term impact on business performance.
• The Vietnam coffee extraction plant is currently operating at 99% utilization. To support future growth in the non-branded segment, the Board has approved capacity expansion plans for both the Vietnam coffee business and tea extracts operations in India.
• Management remains confident of delivering annual EBITDA margin expansion of 50–80 bps. Despite quarterly seasonality, the company aims to grow profitability at a faster pace than its double-digit revenue growth target.
• Tea prices remain relatively benign, with inflation currently around 5% YoY, while coffee prices have started moderating. Management stated that the company remains agile and prepared to undertake pricing actions if broad-based inflationary pressures or fuel costs increase.
• Advertising and Promotion (A&P) expenditure as a percentage of sales is expected to normalize within the 7.5%–8.5% range. The company plans to maintain strong brand visibility to support aggressive expansion across its growth and innovation portfolios.
• Specialized growth businesses, including NourishCo, Tata Sampann, and the Ready-to-Drink portfolio, are expected to sustain strong momentum with growth projected at nearly 30% in the near term.
• Management expects Tata Sampann margins to gradually improve toward mid-teen levels as scale benefits and portfolio expansion continue to strengthen operating leverage.

Outlook

Tata Consumer has delivered a strong financial performance in Q4FY26, reporting revenue growth of 17.9% YoY and PAT growth of 21.6% YoY compared to Q4FY25. For FY26, the company continued its healthy growth trajectory with revenue increasing 15.2% YoY and PAT rising 20.2% YoY over FY25, reflecting strong execution across key business segments.

It’s Indian business segment remained a key growth driver, delivering 14% YoY revenue growth in FY26, while International business reported 15% YoY growth supported by continued momentum in the coffee portfolio. Non-Branded business segment also posted an impressive 25% YoY growth, aided by strong demand and capacity utilization improvements.

Management has guided for sustained double-digit revenue growth in FY27, supported by healthy demand trends across businesses, continued innovation, premiumisation initiatives, and expansion in high-growth categories. It is also targeting annual EBITDA margin expansion of 50–80 bps through operational efficiencies and scale benefits. However, management remains watchful of geopolitical uncertainties, particularly the ongoing West Asia conflict and its potential impact on global trade and logistics.

The company reported an EPS of ₹15.58 for FY26 and is currently trading at a CMP of ₹1,274, implying a P/E multiple of 81.77x. The valuations appear elevated at current levels, but the company’s consistent execution, strong brand portfolio, expanding growth businesses, and management’s confidence in sustaining long-term growth provide comfort regarding future earnings potential. Considering these factors, the stock remains well-positioned to deliver healthy performance over the medium to long-term investment horizon.

Results:

Source: Company website, EWL Research

Disclosure in pursuance of Section 19 of SEBI (RA) Regulation 2014

Elite Wealth Limited (Elite Wealth Limited is wholly owned subsidiary of InCred Capital Financial Services Limited) does/does not do business with companies covered in its research reports. Investors should be aware that the Elite Wealth Limited may/may not have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only information in making their investment decision and must exercise their own judgment before making any investment decision.

For analyst certification and other important disclosures, see the Disclosure Appendix, or go to www.elitewealth.in. Analysts employed by Elite Wealth Limited are registered/qualified as research analysts with SEBI in India. (SEBI Registration No.: INH100002300)

Disclosure Appendix

Analyst Certification (For Reports)

Vindhyachal Prasad, Elite Wealth Limited, vindhyachal@elitestock.com

The analyst(s) certify that all of the views expressed in this report accurately reflect my/our personal views about the subject company or companies and its or their securities. I/We also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report. Unless otherwise stated, the individuals listed on the cover page of this report are analysts in Elite Wealth Limited.

As to each individual report referenced herein, the primary research analyst(s) named within the report individually certify, with respect to each security or issuer that the analyst covered in the report, that:

1. All of the views expressed in the report accurately reflect his or her personal views about any and all of

the subject securities or issuers; and

2. No part of any of the research analyst’s compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed in the For individual analyst certifications, please refer to the disclosure section at the end of the attached individual notes.

Research Excerpts

This note may include excerpts from previously published research. For access to the full reports, including analyst certification and important disclosures, investment thesis, valuation methodology, and risks to rating and price targets, please visit www.elitewealth.in.

Company-Specific Disclosures

Important disclosures, including price charts, are available and all Elite Wealth Limited covered companies by visiting https://www.elitewealth.in, or emailing research@elitestock.com with your request. Elite Wealth Limited may screen companies based on Strategy, Technical, and Quantitative Research. For important disclosures for these companies, please e-mail research@elitestock.com.

Options related research:

If the information contained herein regards options related research, such information is available only to persons who have received the proper option risk disclosure documents. For a copy of the risk disclosure documents, please contact your Broker’s Representative or visit the OCC’s website at https://www.elitewealth.in

Other Disclosures

All research reports made available to clients are simultaneously available on our client websites. Not all research content is redistributed, e-mailed or made available to third-party aggregators. For all research reports available on a particular stock, please contact your respective broker’s sales person.

Ownership and material conflicts of interest Disclosure

Elite Wealth Limited policy prohibits its analysts, professionals reporting to analysts from owning securities of any company in the analyst’s area of coverage. Analyst compensation: Analysts are salary based permanent employees of Elite Wealth Limited. Analyst as officer or director: Elite Wealth Limited policy prohibits its analysts, persons reporting to analysts from serving as an officer, director, board member or employee of any company in the analyst’s area of coverage.

Country Specific Disclosures

India – For private circulation only, not for sale. Legal

Entities Disclosures

Elite Wealth  Ltd (EWL, henceforth), having its registered office at Casa Picasso, Golf Course Extension, Near Rajesh Pilot Chowk, Radha Swami, Sector-61, Gurgaon-122001 Haryana, is a SEBI registered Research Analyst and is regulated by Securities and Exchange Board of India. Telephone: 011-43035555, Facsimile: 011-22795783 and Website: www.elitewealth.in

EWL discloses all material information about itself including its business activity, disciplinary history, the terms and conditions on which it offers research report, details of associates and such other information as is necessary to take an investment decision, including the following:

1. Reports
2. EWL or his associate or his relative has no financial interest in the subject company and the nature of such financial interest;
3. EWL or its associates or relatives, have no actual/beneficial ownership of one %. or more in the securities of the subject company, at the end of the month immediately preceding the date of publication of the research report or date of the public appearance;
4. EWL or its associate or his relative, has no other material conflict of interest at the time of publication of the research report or at the time of public appearance;
5. Compensation
6. EWL  or its associates have not received any compensation from the subject company in the past twelve months;
7. EWL or its associates have not managed or co-managed public offering of securities for the subject company in the past twelve months;
8. EWL or its associates have not received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months;
9. EWL or its associates have not received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months;
10. EWL or its associates have not received any compensation or other benefits from the Subject Company or third party in connection with the research
11. In respect of Public Appearances
12. EWL or its associates have not received any compensation from the subject company in the past twelve months;
13. The subject company is not now or never a client during twelve months preceding the date of distribution of the research report and the types of services provided by EWL