Tata Chemicals reported stable standalone performance driven by higher volumes and prudent cost management despite market headwinds. Consolidated EBITDA decreased due to sharp decline in U.S. operations. The company focuses on protecting margins and preserving cash flow amidst challenging soda ash market. India’s demand remains robust, while other regions face mixed conditions. Key investments include a greenfield iodized salt facility and precipitated silica expansion. Rallis saw 19% revenue growth.
Financial Performance Overview
Tata Chemicals’ standalone performance was supported by higher volumes and prudent cost management. Revenue was down 1% to INR 3,550 crores, while EBITDA stood at INR 345 crores. Consolidated EBITDA faced pressure due to pricing in all geographies, particularly the U.S. Net debt stands at INR 5,596 crores, excluding lease.
Standalone Highlights
Revenue from operations stood at INR 1,204 crores, up 3%. EBITDA at INR 228 crores, a 9% increase. India demonstrated strong performance due to higher volumes and operational efficiencies. Silica sales volume increased by 15%, and FOS sales volume increased by 9%.
Business Segment Updates
U.S.: Higher domestic and export volumes but lower export prices led to sharp fall in revenues and margins.
UK: Salt production was impacted by an unplanned stoppage, which has resumed. Bicarb is recovering its market share using feedstock from TCNA.
Kenya: Higher revenue due to higher volume, offset by lower realization. The 50 KT electric calciner soda ash plant is expected to be fully stabilized by March 2026.
Rallis: Reported revenue growth of 19% driven by crop care and seed business.
Strategic Initiatives
Acquisition of Novabay Singapore to strengthen position in premium grade value-added Bi-carb market.
Investment of INR 515 crore approved for a greenfield iodized salt facility with 210 kilo tonne per annum capacity in Valinokkam, Tamil Nadu, expected to be commissioned over the next 36 months.
Approved 50 kilo tonne per annum precipitated silica expansion at Cuddalore for INR 775 crore, and a 350-kilo tonne dense ash plant in Mithapur for INR 135 crores.
Outlook and Strategy
Priorities remain protecting margins, preserving cash flows, and maintaining balance sheet strength. The company will continue a disciplined approach to capacity utilization, cost control, and capital allocation.
Source: BSE
