Tata Chemicals Posts 50 Crore Rupee Loss as Operating Profit Falls Despite Revenue Growth
Key Facts
Tata Chemicals announced on November 7 its results for the quarter and half year ended September 30, 2026, reporting a consolidated loss after tax of 50 crore rupees in the second quarter of fiscal 2027, compared with a profit of 219 crore rupees a year earlier. The shift to a loss came despite an 8% year-on-year increase in consolidated revenue from operations to 4,177 crore rupees. The results showed a divergence between sales growth and weaker operating profit, with consolidated EBITDA at 381 crore rupees, compared with 537 crore in the year-earlier quarter. Chairman and Managing Director R. Mukundan said higher sales and production volumes, improved efficiency and cost discipline helped mitigate the pressures. These factors, however, did not prevent a decline in consolidated profitability during the quarter.
The company said growth in revenue from operations was driven by higher volumes in India and the United States, along with higher realizations in India. The disclosure said the temporary suspension of operations in Kenya was among the factors affecting revenue, but did not specify the size of its impact. Year on year, revenue rose from 3,877 crore rupees in the second quarter of fiscal 2026 to 4,177 crore in the current quarter. On a sequential basis, consolidated revenue from operations fell from 4,255 crore rupees in the first quarter of fiscal 2027 to 4,177 crore in the second quarter. The two comparisons show annual revenue growth alongside a slight decline from the previous quarter.
The company attributed the fall in EBITDA to lower realizations at subsidiaries outside India, particularly U.S. exports to Southeast Asian markets, where those shipments faced uneconomic pricing. Mukundan said consolidated results were affected by a sharp rise in natural gas costs in the United Kingdom. He added that the prolonged conflict in the Middle East continued to push up the cost of key inputs, including limestone, carbon dioxide, energy, freight and logistics. These pressures came on top of continued pressure on soda ash prices, limiting the benefit of higher sales and improved operating efficiency. Management said that "global oversupply, weak demand and trade shifts continue to pressure prices and realizations," with U.S. exports to Southeast Asia particularly affected by uneconomic prices.
In the first half of fiscal 2027, consolidated revenue from operations was 8,432 crore rupees, up 11% from the year-earlier period, while EBITDA fell to 936 crore from 1,186 crore rupees. The half-year figures reflect a widening gap between revenue growth and weaker operating profit, in line with the second-quarter trend. At the standalone level, quarterly revenue rose 8% to 1,303 crore rupees, and EBITDA increased 22% to 292 crore. Profit after tax from continuing operations at the standalone level was 122 crore rupees, down 31% from the year-earlier quarter. In the first half, standalone profit after tax from continuing operations was 465 crore rupees, down 4%, despite 9% revenue growth to 2,584 crore and a 29% increase in EBITDA to 656 crore.
Consolidated net debt, excluding leases, was 6,127 crore rupees as of September 30, 2026. The company said the external environment would remain challenging in the near term, with excess capacity, weak pricing, geopolitical pressures and costs weighing on the near- and medium-term outlook for soda ash. Management identified cost reduction, cash generation and operational improvements as priorities in response to these conditions. It also said it would focus on improving efficiency and its manufacturing footprint and global supply chains. The company added that it would focus on markets that offer the potential to deliver sustainable value.