Tata Chemicals Q4 Results: Loss Narrows To Rs 56 Crore

Tata Chemicals Ltd.'s consolidated net loss narrowed sharply to Rs 56 crore in the quarter ended March 2025, as compared to Rs 850 crore in the year-ago period.

Despite narrowing its net loss on a yearly basis, the Tata Group company has missed the analysts' projection. The consensus estimate of analysts tracked by Bloomberg was of Rs 74-crore net profit.

The soda ash manufacturer's revenue during the quarter under review rose by 1% to Rs 3,509 crore, as against Rs 3,475 crore in the year-ago quarter.

The company's board also recommended a dividend of Rs 11 per share for financial year 2024-25. If approved at the ensuing annual general meeting, the dividend will be paid "within five days of the AGM", an exchange filing stated.

• Revenue up 1% at Rs 3,509 crore versus Rs 3,475 crore (Bloomberg estimate: Rs 3,642.4 crore).

• Ebitda down 26% at Rs 327 crore versus Rs 443 crore (Bloomberg estimate: Rs 452.4 crore).

• Margin at 9.3% versus 12.7%. (Bloomberg Estimate:12.4%)

• Net loss narrows to Rs 56 crore versus Rs 850 crore (Bloomberg estimate: Rs 74-crore profit).

The company incurred a loss of Rs 850 crore last year on the back of exceptional items of Rs 963 crore due to the write-down of assets in its UK soda ash and bicarb operations. This impairment was primarily driven by unfavourable European market conditions, reduced soda ash demand, and a persistently low pricing outlook leading to downward revisions of cash flow projections.

• The company's revenue from operations reached Rs 3,509 crore, representing a 1% increase compared to the fourth quarter of fiscal year 2024. This growth was constrained by pricing pressure observed across all geographical regions.

• Earnings before interest, taxes, depreciation and amortisation amounted to Rs 327 crore in the fourth quarter of fiscal year 2025, a decrease from Rs 443 Crore in the corresponding period of the previous fiscal year. This decline was primarily driven by lower pricing.

• The Soda Ash unit located in Lostock, UK, ceased its operations starting from early February 2025, resulting in an additional exceptional charge of Rs 55 Crore.

• As of March 31, 2025, the company's gross debt stood at Rs 7,072 crore (including lease liabilities of Rs 768 Crore), reflecting an increase of Rs 1,509 crore. This rise in debt was attributed to higher working capital loans in India, the US, and the UK.

"Market conditions remain challenging even as India continues to grow, while China, US and Western Europe are witnessing slight declines due to reduced demand for flat and container glass," R Mukundan, chief executive officer of Tata Chemicals Ltd., said.

"In other regions, Asia (excluding China and India) and Americas (excluding USA) demand is robust, while slight decline is observed in demand of Africa. Though demand-supply balance softens, tariff uncertainties will continue to weigh on market, medium- and long-term outlook remains positive driven by sustainability trends," Mukundan said.

Before the quarterly results were declared, shares of Tata Chemicals closed 1.04% higher at Rs 824.6 apiece on the BSE, as compared to a 0.13% rise in the benchmark Sensex.