Tata Chemicals Q2 Consolidated PAT Loss ₹50 Crore

Sales Volumes for Q2FY27: Living Essentials (Salt & Bicarb): 569 Kts vs. 543 Kts (PQ) vs. 506 Kts (PY); Industrial Essentials (Soda Ash): 851 Kts (CQ) vs. 885 Kts (PQ) vs. 850 Kts (PY).
Key drivers: Higher revenue in current quarter vs. previous year driven by higher revenue in India, higher volume & lower realization in US and addition to revenue by Novabay acquisition. UK performance impacted by high input energy costs and logistics disruption due to prolonged Middle East conflict. Kenya impacted by temporary suspension.

Living Essentials (LE): Q2 Revenue: ₹1,191 Cr vs. ₹1,064 Cr (PQ) vs. ₹1,072 Cr (PY); Q2 EBIT: ₹85 Cr vs. ₹188 Cr (PQ) vs. ₹55 Cr (PY). H1 Revenue: ₹2,255 Cr vs. ₹1,922 Cr (PY); H1 EBIT: ₹273 Cr vs. ₹259 Cr (PY).
Industrial Essentials (IE): Q2 Revenue: ₹2,262 Cr vs. ₹2,240 Cr (PQ) vs. ₹2,150 Cr (PY); Q2 EBIT: (₹120) Cr vs. (₹70) Cr (PQ) vs. ₹16 Cr (PY). H1 Revenue: ₹4,502 Cr vs. ₹4,137 Cr (PY); H1 EBIT: (₹190) Cr vs. ₹147 Cr (PY).
Farm Essentials (FE): Q2 Revenue: ₹858 Cr vs. ₹1,022 Cr (PQ) vs. ₹861 Cr (PY); Q2 EBIT: ₹94 Cr vs. ₹156 Cr (PQ) vs. ₹128 Cr (PY). H1 Revenue: ₹1,880 Cr vs. ₹1,818 Cr (PY); H1 EBIT: ₹250 Cr vs. ₹250 Cr (PY).
Explanation: IE segment performance severely impacted by lower net realizations due to unremunerative pricing in South East Asia, increased input costs from geopolitical issues, and higher fixed cost/depreciation from currency impact.

Q2FY27 Consolidated (₹ Cr)

Revenue: ₹4,177 Cr vs. ₹4,255 Cr (PQ) vs. ₹3,877 Cr (PY)
EBITDA: ₹381 Cr vs. ₹555 Cr (PQ) vs. ₹537 Cr (PY)
PAT (from continuing operations, before exceptional items): ₹(50) Cr vs. ₹60 Cr (PQ) vs. ₹219 Cr (PY)
EBITDA Margin: Not explicitly stated but calculable as ~9.1% for Q2
YoY comparison: Revenue up 7.7% but PAT turned to loss due to lower realization, higher input costs, fixed cost & depreciation, lower other income and JV income

H1FY27 Consolidated (₹ Cr)

Q2FY27 Standalone (₹ Cr)

H1FY27 Standalone (₹ Cr)

Drivers: Higher revenue but profitability impacted by variable cost increases from input costs, lower other income, and higher finance costs as overseas debt refinanced through India.
Key Risks: Persistent soda ash oversupply, weak industrial end-markets, unremunerative pricing in Southeast Asia, energy/freight/logistics exposure to geopolitical disruption.

Unit-wise Q2 Performance (₹ Cr)

Domestic vs Export: Not explicitly split but India operations contributed ₹1,303 Cr revenue out of consolidated ₹4,177 Cr (~31%).

Consolidated (as of 30-Sep-2026, ₹ Cr)

Non-Current Assets: ₹31,973
Inventories: ₹3,104
Trade Receivables: ₹2,507
Cash and Bank Balance: ₹610
Total Assets: ₹39,325
Equity & Reserves: ₹21,923
Non-Controlling Interests: ₹1,035
Borrowings (Non Current)/Lease Liabilities: ₹5,066
Borrowings (Current)/Lease Liabilities: ₹2,696
Net Debt (External): ₹6,127 Cr (Sep 26) vs. ₹5,961 Cr (Mar 26) [Excluding Lease of ₹840 Cr]
Financial Health: Net debt increased slightly from March 2026 levels.

Capital Expenditure: Multiple expansion projects underway but specific capex figures not provided in presentation.
Strategic Initiatives: 82.5 KTPA Iodised Vacuum Salt Dried plant at Mithapur; 50 KTPA Precipitated Silica Plant at Cuddalore; 210 KTPA IVSD plant at Valinokkam; 40 KTPA Bicarbonate at Singapore.
Investment Rationale: Expansion through debottlenecking and acquisitions; revenue maximization; realization of new capacities.

Excel: Established Global Capability Centre (GCC) in GIFT City; Multiple IIoT and decision-support initiatives underway.
Embed: 85 TPH Biomass Boiler Project at Mithapur; heat recovery projects; community "E-Jeevan" mobile application; biodiversity conservation initiatives.
Expand: Capacity expansion projects as listed above.
Expected impact: Portfolio shift underway with LIFE strategy pivoting towards stable, non-cyclical and application-led businesses in the long run.

Macro/Industry Trends: Global soda ash market faces persistent oversupply; industrial end-markets remain weak with gradual recovery; US exports to Southeast Asia face unremunerative pricing; energy, freight and logistics exposed to geopolitical disruption; supply growth, soft demand and changing trade flows limit pricing power.
Impact on Company: Lower realizations in US operations; higher input costs due to geopolitical issues; UK performance impacted by high energy costs and Middle East logistics disruption; Kenya operations temporarily suspended.

Strategic Outlook: "Global cycle remains challenging in the near to medium term" with "persistent soda ash oversupply."
Portfolio Strategy: "LIFE strategy would in the long run pivoted towards stable, non cyclical and application led businesses."
Risks: Ongoing geopolitical issues, Middle East conflict impacting costs and logistics, temporary suspension in Kenya, unremunerative pricing in export markets.

Climate Change: Absolute carbon emission reduction focus; 85 TPH Biomass Boiler Project at Mithapur.
Circular Economy: Water Neutrality, zero solid waste and recycle goals.
Bio-diversity: Preserve Natural Capital, conservation & restoration of biodiversity; 81,365 saplings planted under "Greening Initiative"; 80,000 Mangrove saplings; 1,036 whale sharks rescued and released.
Awards: Gold level India National MIKE Award 2026; Silver medal EcoVadis sustainability assessment; Excellence in Rural Marketing 2026 Award; Platinum at CII National Six Sigma Competition.

Living Essentials: Installed Capacity - Salt: 1,600,000 MTPA, Bicarb: 290,000 MTPA, Prebiotic: 6,770 MTPA (India); Bicarb: 60,000 MTPA (Singapore); Bicarb: 90,000 MTPA, Salt: 430,000 MTPA, Pharma Salt: 70,000 MTPA (UK).
Industrial Essentials: Installed Capacity - Soda Ash: 1,091,000 MTPA, Cement: 500,000 MTPA, Specialty Silica: 13,800 MTPA (India); Soda Ash: 2,540,000 MTPA (USA); Soda Ash: 400,000 MTPA (Kenya).
Ownership: 55.04% stake in Rallis India Limited; 1/3rd stake in Indo Maroc Phosphore S.A. (IMACID).