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Informist, Saturday, Nov. 1, 2025

 

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--Tata Chem Jul-Sept consol net profit INR 770 mln vs INR 1.94 bln yr ago 
--Tata Chem Jul-Sept consol revenue INR 38.77 bln vs INR 39.99 bln year ago 
--Tata Chem Apr-Sept consol net profit INR 3.29 bln vs INR 3.44 bln yr ago 
--Tata Chem Apr-Sept consol revenue INR 75.96 bln vs INR 77.88 bln year ago 
--Tata Chem board OKs raising up to INR 15 bln via NCDs 

 

By J. Navya Sruthi

 

MUMBAI – Tata Chemicals Ltd. reported a sharp fall in its consolidated net profit for the September quarter on account of a one-time cost, even as the revenue of the company fell slightly. The company's revenue from the key segment, basic chemistry products, also saw a marginal fall during the quarter. 

 

The company's consolidated net profit plunged sharply by 60% on year to INR 770 million. The company's revenue was also down over 3% on year at INR 38.77 billion. The revenue of the company fell due to the reconfiguration of the UK operations and subdued market conditions, according to the company's release. 

 

The company incurred a one-time loss of INR 650 million during the quarter. The company's tax outgo for the September quarter was INR 820 million as against INR 810 million a year ago.

 

In 2024-25 (Apr-Mar), one of Tata Chemicals' subsidiary companies had ceased soda ash production at the Lostock plant in Northwich, the UK. "Pursuant to this announcement, the Group had estimated cost relating to employee termination benefits, decommissioning of plant and machinery, customer contractual obligation and other closure-related incidental expenses," according to the release. 

 

These expenses amounted to INR 1.25 billion in the year ended Mar. 31. However, for the six months ended September, the subsidiary company has recorded an additional expense of INR 650 million "based on the outcome of negotiations relating to certain contractual obligations in respect of the closure of the Lostock operations", it said.

 

In the September quarter, total expenditure was at INR 37.69 billion, slightly lower than INR 38.03 billion a year ago. Finance cost was at INR 1.44 billion, down from INR 1.45 billion a year ago. 

 

"Soda ash markets continue to be over supplied, with high inventory levels in most regions," the company's Managing Director and Chief Executive Officer R. Mukundan said in a note. "Prices continued to weaken during Q2FY26. As demand-supply remains balanced, (demand) continues to be soft, we expect market to continue to remain range-bound in medium term." 

 

Tata Chemicals' earnings before interest, taxes, depreciation, and amortisation for the quarter was at INR 5.37 billion, down from INR 6.18 billion in the year-ago quarter. The company attributed this fall to lower volume and lower realisation and added that these were partially offset by better cost management. 

 

For the six months ended September, the company's net profit fell 4.4% to INR 3.29 billion, while revenue fell 2.5% to INR 75.96 billion. The company has also approved raising funds through non-convertible debentures worth up to INR 15 billion. 

 

SEGMENT-WISE REVENUE

The company's revenue from the basic chemistry products segment was down over 2% on year at INR 29.79 billion during the September quarter. Revenue from the specialty products segment was INR 9.03 billion, down over 6% on year.

 

Revenues from Indian operations for the September quarter rose over 19% on year to INR 12.04 billion. However, revenues from all other units fell in the September quarter. Revenues from US operations fell nearly 8% to INR 12.82 billion. Revenues from its Kenya operations were significantly down by 23% on year at INR 1.29 billion in Jul-Sept.

 

The company announced its earnings Saturday. On Friday, shares of Tata Chemicals closed 1.1% lower at INR 890.65 on the National Stock Exchange.  End

 

Edited by Tanim Banerjee

 

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