Tata Chemicals Q2 profit falls 60% to ₹77 crore on lower realisations, UK reconfiguration

Tata Chemicals Ltd Saturday (November 1) reported a 60% year-on-year decline in consolidated net profit to ₹77 crore for the quarter ended September 2025 (Q2FY26), compared with ₹194 crore in the same period last year.

Revenue fell 3.1% to ₹3,877 crore from ₹3,999 crore a year ago, due to the reconfiguration of the UK and subdued market conditions. Earnings before interest, tax, depreciation and amortisation (EBITDA) stood at ₹537 crore, down 13% from ₹620 crore in Q2FY25, mainly on account of lower volume and lower realisation, partially offset by better cost management.

Margins contracted to 13.8% from 15.5% a year earlier. The company’s net debt as of September 30, 2025, stood at ₹5,583 crore, excluding lease liabilities of ₹776 crore.

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On a standalone basis, Tata Chemicals reported a 19% year-on-year rise in revenue to ₹1,204 crore, supported by higher volumes. EBITDA rose 67% to ₹240 crore due to cost control measures, while profit after tax from continuing operations increased 80% to ₹178 crore compared with Q2FY25.

For the first half of FY26 (H1FY26), consolidated revenue from operations stood at ₹7,596 crore, down 2% year-on-year, due to pricing pressure across regions and lower volumes except in India.

EBITDA came in at ₹1,186 crore compared with ₹1,192 crore in H1FY25, impacted by lower volume and realisation. Profit after tax (before exceptional items and non-controlling interests) rose to ₹535 crore from ₹442 crore a year ago.

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On a standalone basis for H1FY26, revenue rose 15% to ₹2,373 crore, while EBITDA increased 35% to ₹510 crore, reflecting higher volumes and effective cost control. Profit after tax from continuing operations rose 37% to ₹485 crore compared with H1FY25.

R. Mukundan, Managing Director and CEO, Tata Chemicals Ltd, said, "Soda ash markets continue to be oversupplied, with high inventory levels in most regions. Prices continued to weaken during Q2FY26. As demand-supply remains balanced and continues to be soft, we expect the market to continue to remain range-bound in the medium term.

Despite market headwinds caused by subdued pricing, the company’s performance in standalone has been positive, driven by higher volumes, and overall performance is resilient, driven by disciplined cost management. Reconfiguration of the UK is complete with focus on value-added non-cyclical products."

Shares of Tata Chemicals Ltd ended at ₹890.75, down by ₹9.95, or 1.10%, on the BSE.

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