TATA CONSUMER PRODUCTS LIMITED Q4 FY2026 Results
📊
Overview
📋
Detailed Analysis
Sentiment
Positive
Executive Summary
TATA CONSUMER Q4 FY2026: Revenue ₹5,433.62 Cr (vs ₹4,608.22 Cr YoY), PAT ₹424.02 Cr (vs ₹348.72 Cr YoY)
In Q4 FY2026 Tata Consumer reported consolidated Revenue from Operations of ₹5,433.62 Cr, up from ₹4,608.22 Cr in Q4 FY2025, driven by growth across India, International and Non‑Branded businesses. Group consolidated Net Profit (Group consolidated net profit) was ₹424.02 Cr in Q4 FY2026 vs ₹348.72 Cr in Q4 FY2025, supported by operating margin expansion and lower tea cost inflation in India. Key one‑offs included modest Exceptional Items of ₹2.80 Cr in the quarter and disclosure of incremental impact from new Indian Labour Codes (treated as exceptional). The Board recommended a dividend of ₹10...Revenue from Operations (Consolidated, Q4 FY2026)
₹5,433.62 Crvs ₹4,608.22 Cr in Q4 FY2025
Group Consolidated Net Profit (Q4 FY2026)
₹424.02 Crvs ₹348.72 Cr in Q4 FY2025
Profit before Exceptional Items and Tax (Q4 FY2026)
₹641.37 Crvs ₹484.38 Cr in Q4 FY2025
Operating margin % (Consolidated, Q4 FY2026)
11.61%vs 10.23% in Q4 FY2025
Basic EPS (Consolidated, Q4 FY2026)
₹4.24vs ₹3.49 in Q4 FY2025
India Branded Revenue (Consolidated, Q4 FY2026)
₹3,327.91 Crvs ₹2,936.72 Cr in Q4 FY2025
Non‑Branded Revenue (Consolidated, Q4 FY2026)
₹714.41 Crvs ₹500.55 Cr in Q4 FY2025
Exceptional Items (Consolidated, Q4 FY2026)
₹2.80 Crvs ₹45.32 Cr in Q4 FY2025
Key Highlights
10
Consolidated Revenue from Operations grew to ₹5,433.62 Cr in Q4 FY2026 driven by 13% underlying India growth, 9% International and 41% Non‑Branded growth as disclosed in management notes.
Operating margin expanded to 11.61% in Q4 FY2026 from 10.23% in Q4 FY2025, the company attributes margin expansion principally to tapering of tea cost inflation in the branded India business.
Profit before Exceptional Items and Tax rose to ₹641.37 Cr in Q4 FY2026 from ₹484.38 Cr in Q4 FY2025, reflecting higher operating profits year‑on‑year.
Group consolidated Net Profit was ₹424.02 Cr in Q4 FY2026, up from ₹348.72 Cr in Q4 FY2025, supported by operating leverage and lower commodity inflation in tea for India branded business.
International business revenue increased to ₹1,418.09 Cr in Q4 FY2026 (vs ₹1,193.68 Cr in Q4 FY2025) but the notes flag coffee cost inflation and US tariff headwinds impacting international margins.
Exceptional Items in Q4 FY2026 were a net gain of ₹2.80 Cr comprising fair value and impairment adjustments, materially lower than the ₹45.32 Cr of exceptional gains in Q4 FY2025.
+4 more in Detailed Analysis →
Key Highlights
10
Consolidated Revenue from Operations grew to ₹5,433.62 Cr in Q4 FY2026 driven by 13% underlying India growth, 9% International and 41% Non‑Branded growth as disclosed in management notes.
Operating margin expanded to 11.61% in Q4 FY2026 from 10.23% in Q4 FY2025, the company attributes margin expansion principally to tapering of tea cost inflation in the branded India business.
Profit before Exceptional Items and Tax rose to ₹641.37 Cr in Q4 FY2026 from ₹484.38 Cr in Q4 FY2025, reflecting higher operating profits year‑on‑year.
Group consolidated Net Profit was ₹424.02 Cr in Q4 FY2026, up from ₹348.72 Cr in Q4 FY2025, supported by operating leverage and lower commodity inflation in tea for India branded business.
International business revenue increased to ₹1,418.09 Cr in Q4 FY2026 (vs ₹1,193.68 Cr in Q4 FY2025) but the notes flag coffee cost inflation and US tariff headwinds impacting international margins.
Exceptional Items in Q4 FY2026 were a net gain of ₹2.80 Cr comprising fair value and impairment adjustments, materially lower than the ₹45.32 Cr of exceptional gains in Q4 FY2025.
Board recommended a dividend of ₹10 per equity share for FY2025‑26 (face value Re.1), subject to shareholder approval at the AGM.
Consolidated capex/payments for property, plant & equipment were ₹448.57 Cr for the year ended March 31, 2026, indicating continued investment in manufacturing and supply chain.
Net working capital movements in consolidated cash flow showed inventories increased by ₹200.03 Cr and trade receivables movement was a use of ₹291.07 Cr in FY2026 adjustments to operations, affecting cash conversion.
Management disclosed the incremental impact of the new Indian Labour Codes and treated related items as Exceptional in FY2026, indicating regulatory compliance costs have been recognised separately.
Guidance & Outlook
5
Board has recommended a dividend of ₹10 per share for FY2025‑26, signalling capital return intent subject to shareholder approval.
Management will continue to monitor and evaluate the final rules under the New Labour Codes and will account for any additional impacts when notified, per company disclosure.
Capital expenditure remained active with consolidated payments for property, plant & equipment of ₹448.57 Cr in FY2026, indicating continued investment in capacity and operations for upcoming periods.
The company expects branded margin improvement to be sustained in India as tea cost inflation tapers, which underpinned the quarter's margin expansion.
International business faces coffee cost inflation and US tariff headwinds that management cites as offsets to some margin gains, implying cautious guidance for international margins near term.
Risks & Concerns
5
Coffee cost inflation and US tariff impact in the International Business noted in disclosures could pressure international margins despite revenue growth.
New Labour Codes produced a statutory impact recognised under Exceptional Items and may lead to additional non‑recurring charges when rules are finalised, creating regulatory execution risk.
Working capital dynamics weakened cash conversion in FY2026 with trade receivables and inventories adjustments (trade receivables movement adverse by ₹291.07 Cr and inventories increase ₹200.03 Cr in consolidated adjustments), presenting near‑term cash risk.
Debtors turnover reduced to 18.41 (annualised for the quarter) in Q4 FY2026 from 20.59 in Q4 FY2025, implying slower receivables collection compared to prior year.
Exceptional items in prior periods included significant fair value remeasurements and asset write‑downs; future impairments or fair value volatility could reoccur, affecting comparability and earnings quality.
AI-generated analysis. May contain inaccuracies — verify against original sources.