Q2 profit of Tata Chemicals down 60%: What's the reason?
What's the story
Tata Chemicals has reported a massive 60% drop in its consolidated net profit for the September quarter. The company's net profit stood at ₹77 crore, compared to ₹194 crore during the same period last year. The fall is mainly attributed to subdued market conditions, lower realizations, and reconfiguration efforts in the UK.
Financial performance
Revenue and EBITDA also fall for Tata Chemicals
Along with the profit, Tata Chemicals's revenue also took a hit. The company's consolidated revenue fell 3% to ₹3,877 crore from ₹3,999 crore in the same quarter last year. Earnings before interest, tax, depreciation and amortization (EBITDA) stood at ₹537 crore, down 13% from ₹620 crore in Q2 FY25. This was mainly due to lower volume and realizations but was partially offset by better cost management strategies.
Standalone growth
Standalone performance shows growth
On a standalone basis, Tata Chemicals saw a 19% year-on-year increase in revenue to ₹1,204 crore. This growth was driven by higher volumes. EBITDA also witnessed a significant jump of 67% to ₹240 crore, thanks to effective cost control measures. The profit after tax from continuing operations rose an impressive 80% year-on-year to ₹178 crore compared with Q2 FY25 figures.
Market outlook
MD & CEO comments
R Mukundan, Managing Director & CEO of Tata Chemicals, said that soda ash markets are oversupplied with high inventory levels in most regions. He noted that prices continued to weaken during Q2 FY26. Despite these challenges, the company's standalone performance has been positive due to higher volumes and disciplined cost management.