Key Financial Highlights

Q2 FY27 Standalone Performance (India Operations):

  • Revenue from operations: INR1,303 crore (up 8% YoY)
  • EBITDA: INR292 crore (up 22% YoY)
  • Profit After Tax: INR122 crore (down 31% YoY)

Q2 FY27 Consolidated Performance:

  • Revenue from operations: INR4,177 crore (up 8% YoY)
  • EBITDA: INR381 crore (down from INR537 crore YoY)
  • Loss After Tax: INR50 crore (versus profit YoY)
  • Net debt without leases: INR6,127 crore

H1 FY27 Standalone Performance:

  • Revenue from operations: INR2,584 crore (up 9% YoY)
  • EBITDA: INR656 crore (up 29% YoY)
  • Profit After Tax: INR465 crore (down 4% YoY)

H1 FY27 Consolidated Performance:

  • Revenue from operations: INR8,432 crore (up 11% YoY)
  • EBITDA: INR936 crore (down from INR1,186 crore YoY)
  • Profit After Tax before exceptional NCI: INR10 crore (down from INR535 crore YoY)

Operational and Business Unit Highlights

India Operations:

  • Performance better than global markets with higher volumes in salt, FOS, and silica
  • Demand picture remains stable and positive but pressured with oversupply and import pressure
  • Capitalization of projects resulted in higher depreciation and finance costs

US Operations (TCNA):

  • Higher revenue due to higher volumes from acquired contracts
  • Lower pricing in export markets partly offset volume gains
  • Successfully bid for Chapter 11 bankruptcy proceedings of Searles Valley Minerals
  • Acquisition of customer contracts representing half a million tonnes to be serviced over two years
  • Paid $22 million for the contracts, treated as intangible asset amortized over five years

UK Operations:

  • Lower revenue due to reduced realization in salt
  • Variable costs increased sharply due to higher gas costs
  • Supply chain issues resulted in lower realization of sales to Middle East markets

Kenya Operations:

  • Operations remained suspended during the quarter due to notice from Ministry of Mining
  • Company engaging administratively with ministry officials and through legal mechanisms
  • Lease extends until 2053 with inalienable rights; mining licenses approved but not issued
  • Matter referred to Environment and Land Court with proceedings scheduled for November 2026
  • Operations covered under UK-Kenya Bilateral Investment Treaty protecting the investment
  • Expansion plans included doubling capacity and adding bicarbonate unit

Singapore Operations:

  • Sales performance in line with expectations

Rallis India (Agrochemicals):

  • Monsoon shortfall and delayed sowing affected agrochemical demand
  • Kharif acreage recovered as season progressed
  • Delivered resilient performance with growth in crop care and soil health
  • Profitability under pressure due to input cost inflation and unfavorable operating conditions

Market Environment and Industry Outlook

Global Soda Ash Market:

  • Persistent oversupply and subdued industrial demand, especially in China
  • Significant capacity additions in China over last two years continue pressure global prices
  • China producer inventory reached 1.89 million metric tons by end-September
  • Ongoing Middle East conflict increased freight volatility and supply chain risks
  • US producer announced reduction of production at Wyoming by 1.5 million tons
  • Pricing expected to remain range-bound with any improvement dependent on supply rationalization

Indian Market Dynamics:

  • DGTR recommended quantity restrictions on soda ash imports for two years
  • Imports increased by 89% in FY2024 due to global oversupply
  • Indian domestic pricing softened due to improved import availability and increased domestic supply

Demand Segments:

  • Living Essentials (bicarbonate, salt, FOS): Demand supported by premiumization and increasing consumption
  • Industrial Essentials (soda ash, silica): Challenging near-to-medium term outlook
  • Farm Essentials: Uneven rainfall and delayed sowing affected demand; agriculture outlook remains cautious

Strategic Initiatives and Capital Allocation

Capital Expenditure:

  • FY27 capex budget: approximately INR1,000 crore
  • FY28 capex expected to remain at similar level
  • Includes growth projects

Debt Reduction and Investments:

  • Sold investments in group companies worth INR796 crore in July 2026
  • Proceeds used to pay off debt in US and UK operations
  • Company holds approximately INR8,000 crore worth of shares in group companies at market value

Strategic Priorities:

  • Strengthening cost competitiveness and operational excellence
  • Enhancing supply chain resilience
  • Optimizing working capital and maintaining disciplined capital allocation
  • Increasing contribution of non-cyclical specialty and value-added businesses
  • Focus on LIFE framework with application-oriented businesses