Tata Consumer Products Shares Surge 7% Following Strong Q4 Earnings Report
Tata Consumer shares soar 7% after better-than-expected Q4 earnings. Here’s what Morgan Stanley & other top brokerages say
The Economic TimesImage: The Economic Times
Shares of Tata Consumer Products rose nearly 7% after the company reported a 21% year-on-year increase in consolidated net profit for Q4 FY26, reaching ₹419 crore. Analysts from Morgan Stanley and Motilal Oswal have set target prices indicating potential upsides of 15% and 23%, respectively, reflecting positive market sentiment despite broader market declines.
- 01Tata Consumer Products reported a 21% YoY increase in net profit for Q4 FY26.
- 02The company's revenue rose 18% YoY to ₹5,438 crore.
- 03Motilal Oswal maintains a 'Buy' rating with a target price of ₹1,450.
- 04Morgan Stanley rates the stock 'Overweight' with a target of ₹1,351.
- 05Tata Consumer shares have increased 60% over the last three years.
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Tata Consumer Products witnessed a significant share price increase of nearly 7% on Monday, trading at ₹1,253.60 per share, following the release of its Q4 financial results for the fiscal year 2026. The company reported a consolidated net profit of ₹419 crore, marking a 21% increase year-on-year from ₹345 crore in Q4 of the previous fiscal year. Revenue from operations also saw a robust growth of 18%, reaching ₹5,438 crore. The board has proposed a dividend of ₹10 per share for FY26, pending shareholder approval. Analysts from Motilal Oswal noted a 34% YoY growth in EBIT, driven by a remarkable 88% growth in the India-branded business. Despite a decline in EBIT from the international beverages and non-branded segments, the overall outlook remains positive, with expectations of continued growth in the India foods segment. Morgan Stanley and Elara Capital have set target prices of ₹1,351 and ₹1,345, respectively, both indicating substantial upside potential. The stock has gained 8% in the past week and 14% over the last month, reflecting strong investor confidence.
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The strong earnings report and subsequent share price increase may enhance investor confidence in Tata Consumer Products, potentially leading to increased investments and growth opportunities.
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