Tata Consumer Products has reported a mixed performance for the fourth quarter of fiscal year 2024-25, with strong revenue growth but margin pressure. The company's Q4 results triggered a stock decline, with shares falling up to 5% following the announcement.

Q4 Performance Highlights

For the quarter ended March 31, 2025, TCPL's consolidated revenue from operations grew by 17.3% year-over-year to Rs 4,608.00 crore. This growth was primarily driven by:

• 13% increase in India Business
• 2% growth in International Business
• 23% rise in Non-Branded Business

Despite the strong revenue growth, the company faced margin pressure, with EBITDA margin narrowing 250 basis points to 13.5%.

Segment-wise Performance

India Business

Revenue for Q4 reached Rs 2,937.00 crore, up 18% year-over-year.

International Business

Q4 revenue grew by 13% to Rs 1,194.00 crore.

Non-Branded Business

This segment showed strong growth, with Q4 revenue increasing by 25% to Rs 501.00 crore.

Key Financial Metrics

Market Reaction and Analyst Views

The stock market reacted negatively to the Q4 results, with Tata Consumer Products shares falling up to 5%. Analysts have mixed views on the company's performance and future prospects:

• Price targets range from Rs 1,033.00 to Rs 1,360.00
• Margin recovery is expected in the second half of FY26

Dividend Announcement

The Board of Directors has recommended a dividend of Rs 8.25 per equity share (825%) for FY 2024-25, subject to shareholders' approval at the ensuing 62nd Annual General Meeting.

Performance Insights

• The company's strong revenue growth was offset by margin pressure in Q4
• The significant increase in sales demonstrates the company's ability to drive growth across its business segments
• Analysts remain divided on the company's near-term prospects, with expectations of margin recovery in H2FY26

Tata Consumer Products continues to focus on driving growth and improving operational efficiency. While the Q4 results present a mixed picture, the company's strong revenue performance and expected margin recovery in the coming fiscal year suggest potential for improved performance in the future.

Tata Consumer Products Limited (TCPL) has announced its financial results for the fourth quarter and full year ended March 31, 2025, showcasing robust revenue growth despite challenges in the tea segment.

Q4 FY25 Highlights

For the quarter ended March 31, 2025, TCPL reported:

• Consolidated revenue of Rs. 4,608.00 crore, marking a 17% year-on-year growth (12% organic)
• India business demonstrated strong performance with 22% growth
• International business grew by 5%

Profit and Margin Performance

• Group Consolidated Net Profit: Rs. 349.00 crore, up 64% year-on-year
• EBITDA: Rs. 625.00 crore, down 1% year-on-year
• EBITDA margin: 13.6%, contracted from 16.1% in Q4 FY24

The margin pressure was primarily attributed to higher input costs, particularly in the tea segment.

Segment-wise Performance

India Business

• India Beverages: Revenue grew by 17% (+9% organic)
  • Tea volumes grew 2% year-on-year
• India Foods: Reported 27% growth (+17% organic)
  • Salt volumes increased by 5%
• Growth Businesses: Grew by 66% (24% organic)
  • Includes Tata Sampann, RTD, Tata Soulfull, Capital Foods, and Organic India

International Business

• Recorded 5% revenue growth (2% in constant currency)

Non-Branded Business

• Saw robust 25% growth in Q4
• Includes plantation and extraction businesses

Full Year FY25 Performance

• Consolidated revenue: Rs. 17,618.00 crore, up 16% year-on-year
• EBITDA: Rs. 2,502.00 crore, up 8% year-on-year
• EBITDA margin: 14.2%, contracted by 110 basis points

Strategic Initiatives and Outlook

Sunil D'Souza, Managing Director & CEO of Tata Consumer Products, commented: "We ended the year with a strong quarter, accelerating the momentum further. Despite a tough operating environment, we delivered strong growth across businesses, and we will continue to drive consistent profitable growth as we move forward."

Key initiatives:

• Launched 41 new products during FY25
• Focus on health & wellness, convenience, and premiumization
• Innovation-to-sales ratio for India reached 5.2% in FY25, up from less than 1% in FY20

Dividend Announcement

The Board of Directors has recommended a dividend of Rs. 8.25 per share (Face value Re. 1 each) for FY 2024-25, subject to shareholders' approval.

Tata Consumer Products continues to navigate challenges in the tea segment while driving growth across its portfolio. The company's ability to balance margin pressures with expansion and innovation strategies will be crucial in the coming quarters.