Tata Chemicals Q3 FY25 Results: Reports ₹53 Crore Loss as Revenue Declines 3.8%
Tata Chemicals Ltd: Overview
Tata Chemicals Ltd., a key player in the global chemicals and industrial products industry, operates in diversified segments including basic chemistry, consumer products, and specialty chemicals. Established as part of the Tata Group, the company has a strong presence in India and international markets such as the U.S., UK, and Africa. Tata Chemicals is known for its leadership in soda ash production, which is a critical raw material for glass, detergents, and other industrial applications. The company also manufactures salt, bicarbonate, silica, and fertilizers, supporting industries ranging from agriculture to pharmaceuticals. With a commitment to sustainability, Tata Chemicals integrates green chemistry into its operations, ensuring responsible manufacturing processes and resource utilization. The company has been investing in research and development, particularly in advanced materials, biotechnology, and sustainable solutions to drive long-term growth. The chemical industry plays a crucial role in global economic development, with increasing demand for specialty and performance chemicals in industries such as automotive, pharmaceuticals, agriculture, and consumer goods. The global chemical market is projected to witness steady growth driven by industrialization, urbanization, and sustainability initiatives. In India, the government’s focus on self-reliance (Atmanirbhar Bharat) and incentives for domestic chemical manufacturing are expected to boost the sector. The specialty chemicals market, in particular, is seeing rapid growth due to technological advancements and shifting consumer preferences. Challenges such as raw material price fluctuations, regulatory requirements, and environmental concerns continue to impact the industry. However, Tata Chemicals, with its diversified portfolio and strong international presence, is well-positioned to capitalize on the rising demand for sustainable and high-value chemical solutions.
Latest Stock News
The demand in the US and Western US markets has shown a slight decline, while China’s exports have moderated and remain muted. In India, soda ash prices have dropped by 15% year-on-year, primarily due to lower-priced imports. Kenya experienced lower volumes, although prices remained steady. Rallis India, a subsidiary, reported weaker results due to continued sluggishness in export demand. The company is now focusing more on customer engagement and expanding capacity, with a particular emphasis on India. China continues to be a net exporter, mainly catering to the Southeast Asian market. UK had stable volumes; however, the prices had softened. Kenya saw marginally higher volume and marginally higher prices sequentially. A phased capital expenditure (Capex) plan of 300,000 tons has been set in motion across the USA, Kenya, and India. Additionally, two major plant shutdowns occurred this year, leading to higher production volumes compared to the previous quarter, though restarting these facilities requires approximately ₹30 crores. Year-on-year, EBITDA has declined by ₹108 crore, primarily due to a 12% increase in employee benefits and a 16% rise in freight costs. The company’s total capacity stands at around 250,000 tons per quarter, and it is currently operating at 235,000 tons, reflecting a high utilization rate.
Business Segments
- Basic Chemistry Products: This segment includes soda ash, sodium bicarbonate, salt, and limestone, which are used in industries such as glass, detergents, and textiles. Tata Chemicals is one of the leading producers of soda ash globally and serves key markets in India, the U.S., and Europe.
- Specialty Products: Tata Chemicals has been focusing on the development of specialty chemicals, including Nano-materials, Nutraceuticals, and biotechnology-based solutions. The company’s investments in lithium-ion battery recycling and energy storage materials position it as a future-ready player in the emerging clean energy sector.
- Consumer Products: Tata Chemicals has a growing portfolio in consumer essentials, including Tata Salt, which is one of India’s most trusted brands. The company has expanded into pulses, spices, and nutritional supplements, leveraging its strong distribution network.
- Agri-Solutions: The Company provides high-quality fertilizers, crop protection solutions, and farm inputs to support sustainable agriculture. With a focus on soil health and productivity enhancement, Tata Chemicals contributes to India’s agricultural growth
Subsidiary Information:
- Tata Chemicals North America (TCNA): Tata Chemicals North America operates in the U.S. and is a leading producer of soda ash. The company owns one of the world’s largest natural soda ash deposits in Wyoming, giving it a cost advantage and securing a strong supply chain for North American and global markets. TCNA plays a crucial role in Tata Chemicals’ international expansion strategy.
- Tata Chemicals Europe (TCE): Tata Chemicals Europe focuses on manufacturing and supplying soda ash, sodium bicarbonate, and other industrial chemicals in the European market. The company has been actively investing in carbon capture and sustainable manufacturing technologies to align with global environmental regulations and reduce carbon emissions.
- Rallis India Ltd: A subsidiary of Tata Chemicals, Rallis India is a major player in the agrochemicals sector. It specializes in crop protection solutions, seeds, and specialty nutrients, catering to the needs of Indian farmers. Rallis India’s strong research capabilities and distribution network contribute significantly to Tata Chemicals’ agri-business.
- Tata Chemicals Magadi Ltd: Located in Kenya, Tata Chemicals Magadi is Africa’s largest soda ash manufacturer. The subsidiary has access to extensive trona reserves, ensuring a consistent supply of raw materials for soda ash production. It serves markets across Africa and Asia, strengthening Tata Chemicals’ global footprint.
- Innovation Centre (Tata Chemicals Innovation Hub): Tata Chemicals has set up a dedicated research and innovation center to focus on next-generation materials, biotechnology, and energy solutions. This subsidiary supports the company’s long-term vision of becoming a leader in sustainable and high-tech chemical solutions. The innovation hub plays a vital role in driving new product development and improving operational efficiencies.
Q3 FY25 Earnings
- Revenue of ₹3,590 crore in Q3 FY25 down by 3.71% YoY from ₹3,730 crore in Q3 FY24.
- EBITDA of ₹34 crore in this quarter at a margin of 11% compared to 15% in Q3 FY24.
- Loss of ₹21 crore in this quarter compared to a ₹194 crore profit in Q3 FY24.
Financial Summary
| Amount in ₹ Cr | Q3 FY24 | Q3 FY25 | FY23 | FY24 |
| Revenue | 3730 | 3590 | 16789 | 15421 |
| Expenses | 3188 | 3584 | 12969 | 12574 |
| EBITDA | 542 | 34 | 3820 | 2847 |
| OPM | 15% | 0.9% | 23% | 18% |
| Other Income | 98 | 28 | 218 | -507 |
| Net Profit | 194 | -21 | 2434 | 435 |
| NPM | 5.2% | -0.6% | 14.5% | 2.8% |
| EPS | 6.2 | -2.1 | 90.9 | 10.5 |