Tata Consumer shares soar 7% after better-than-expected Q4 earnings. Here’s what Morgan Stanley & other top brokerages say

11 May 2026, 05:23 by Debaroti Adhikary · The Economic Times

Shares of Tata Consumer Products jumped nearly 7% despite the overall market downturn on Monday after the FMCG major reported strong earnings for the January-March quarter of the financial year 2026, beating estimates.

Tata Consumer Products released its quarterly results in the post-market hours of Friday. The company’s consolidated net profit rose 21% YoY to Rs 419 crore in the fourth quarter of FY26, from Rs 345 crore in the same quarter of the previous financial year. Its revenue from operations, meanwhile, rose 18% year-on-year (YoY) to Rs 5,438 crore.

Along with the Q4 results, Tata Consumer Products announced that its board recommended a dividend of Rs 10 per share for the financial year 2025-26. The dividend, if approved by shareholders, will be paid to the eligible shareholders on or after June 15, 2026.

Motilal Oswal on Tata Consumer Products
Motilal Oswal highlighted that Tata Consumer Products reported a 34% YoY growth in EBIT, led by strong 88% YoY growth in India-branded business EBIT, which was supported by operating leverage (decrease in other expenses as a percentage of sales by 230bp). International beverages business EBIT, however, declined 4% YoY and non-branded business EBIT declined 33% YoY. In 4Q, salt/tea reported a volume growth of 13%/4% YoY, and Sampann grew 69% YoY, it further noted.

The domestic brokerage expects Tata Consumer Products to maintain a healthy overall growth momentum going forward, with the Indian beverages business expected to witness a gradual margin recovery, aided by stable tea prices. “The India foods segment is expected to continue delivering strong growth, led by Tata Sampann, expansion in the salt portfolio, and premium offerings. International business profitability is also likely to improve with the normalization of coffee costs and continued scale-up in RTD beverages. Capital Foods, Organic India, and health & wellness categories are expected to further support revenue growth and margin expansion over the medium term,” it further said.

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Motilal largely maintained its earnings estimates for the company, and reiterated its ‘Buy’ call on the stock with a target price of Rs 1,450 apiece. This implies an upside potential of more than 23% from the stock’s previous closing price.

Morgan Stanley on Tata Consumer Products
Morgan Stanley remained ‘Overweight’ on Tata Consumer Products shares, with a target price of Rs 1,351 apiece, implying an upside potential of nearly 15% from the stock’s previous closing price.

The international brokerage said that the company’s Q4 revenue, EBITDA and PAT beat estimates, led by the India Foods segment and margins, ET Now reported. Revenue growth and EBITDA margin improvement further accelerated sequentially from Q3, it added, while highlighting 50-75 bps EBITDA margin expansion guidance for FY27.

Elara Capital on Tata Consumer Products
Elara Capital raised its target price to Rs 1,345 apiece from Rs 1,260 apiece, while maintaining its ‘Accumulate’ rating on the stock. The latest target price implies an upside potential of more than 14% from the stock’s previous closing price.

The brokerage said that the firm’s Q4 revenue growth beat estimates, driven by India-branded and non-branded businesses, ET Now reported. It highlighted that the company’s management has reiterated double-digit topline growth with 50-70 bps margin expansion.

Tata Consumer Products share price

Tata Consumer Products shares jumped nearly 7% to trade at Rs 1,253.60 apiece on NSE in the morning trading hours of Monday. This came despite the overall bearish sentiment in the market, with the Sensex plunging more than 1,000 points.

Also read: Titan shares crash 6% after Q4 results. What are Goldman Sachs, Morgan Stanley, Bernstein, other brokerages saying?

Shares of the Tata Group company have gained 8% in one week and over 14% in one month. In the longer term, the stock jumped 60% in three years and 97% in five years.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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