Tata Chemicals reported a sharp deterioration in its performance for the quarter ended 31 March 2026, with net loss widening to Rs 2,132 crore from Rs 56 crore in the year-ago period, primarily due to impairment charges and weak soda ash realisations.
The company recognised an impairment of Rs 1,837 crore on goodwill in its US business along with a write-off of deferred tax assets worth Rs 182 crore, amid continued weakness in the global soda ash market.
Revenue declined 2 per cent year-on-year to Rs 3,438 crore from Rs 3,509 crore. Operating performance also weakened, with earnings before interest, tax, depreciation and amortisation (EBITDA) falling 16.2 per cent to Rs 274 crore from Rs 327 crore, while margins contracted to 7.97 per cent from 9.32 per cent.
The basic chemistry segment remained under pressure, with revenue declining to Rs 2,933 crore from Rs 3,037 crore and reporting a loss of Rs 1,802 crore compared with a profit of Rs 84 crore in the corresponding quarter last year.
In contrast, the specialty products segment reported improved performance, with revenue rising to Rs 505 crore from Rs 472 crore, while losses narrowed to Rs 46 crore from Rs 63 crore.
Despite the weak earnings, the board recommended a dividend of Rs 11 per equity share for Financial Year 2026, subject to shareholder approval at the annual general meeting. The company said the dividend will be paid within five days of approval.
On the operational front, the board approved an investment of Rs 100 crore to expand iodised vacuum salt capacity at its Mithapur plant by 82,500 tonne per annum over the next 12 months. The expansion will be funded through internal accruals and other sources to meet rising demand. |
