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Informist, Saturday, Dec. 6, 2025

MUMBAI – Tata Chemicals Ltd. Saturday said that Crisil Ratings Ltd. has assigned an 'AA+' rating to the non-convertible debentures of the company of up to INR 12 billion with a stable outlook. The rating agency has also re-affirmed the 'AA' rating on its non-convertible debentures of up to INR 20 billion with a stable outlook and re-affirmed 'A1+' rating on its commercial paper of INR 1 billion, the company said in an exchange filing.

The ratings reflect the strong business risk profile of Tata Chemicals. This is driven by its presence in diversified markets, healthy operating efficiency, and comfortable financial risk profile. However, these strengths are partially offset by price volatility in the soda ash business, Crisil said in a report.

The business of the company remains diversified, with operations across basic chemistry products such as soda ash, sodium bicarbonate and salt manufacturing, and specialty products including agricultural solutions. Soda ash, sodium bicarbonate and salt manufacturing together contributed around 75% of the revenue in the first half of 2025-26 (Apr-Mar), the rating agency said.

However, the domestic soda ash business remains vulnerable to volatility in international prices which is driven by currency fluctuations and competition from imports. The prices of soda ash rose sharply between FY22 and FY24 due to strong demand but softened later. The prices continued to be weak in H1 FY26. The soda ash business will remain exposed to price volatility despite Tata Chemicals' operating efficiency of large scale operations and increased integration across geographies.   

The inorganic chemicals business has a presence in North America, Europe, and Africa. Tata Chemicals is the largest producer of soda ash in the world, with a capacity of around 4 million tonnes per annum and natural soda ash forming 70% of its capacity, Crisil said. The company's subsidiary, Rallis, also has a strong market position in agricultural products, including agricultural solutions, Crisil said. 

The liquidity of the company remains strong, aided by cash and equivalents of INR 11.36 billion as of Sept. 30. As of Nov. 28, the company also has equity investments in other Tata group companies valued around INR 74 billion. The strong financial flexibility of being part of the Tata group and low utilisation of working capital lines supports liquidity, according to Crisil.

For the September quarter, Tata Chemical reported a consolidated net profit of INR 770 million on a revenue of INR 38.77 billion. Friday, shares of the company ended over 1% lower at INR 774.05 on the National Stock Exchange.   End

Reported by Adhithya Aji 

Edited by Akul Nishant Akhoury

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