Tata Chemicals Q2 FY27 slides: revenue rises 8% as margins contract

Tata Chemicals reported a 8% year-over-year increase in revenue to ₹4,177 crore for Q2FY27, while EBITDA declined by 29% to ₹381 crore, leading to a consolidated loss after tax of ₹50 crore in contrast to a profit of ₹219 crore in the same quarter last year. The company's overseas businesses faced challenges due to global soda ash oversupply, geopolitical disruptions, and higher input costs, while its domestic operations remained resilient.

Tata Chemicals' stock closed at $607.45, down 1.36%, near its 52-week low of $570.05. The company's mixed performance for Q2FY27 was attributed to volume and mix contributions of ₹28 crore and positive pricing of ₹272 crore, but was overwhelmed by price realization of ₹129 crore and increased fixed costs of ₹99 crore, resulting in a 29% year-over-year decline in operating profitability.

The H1FY27 revenue reached ₹8,432 crore, an 11% increase from ₹7,596 crore, but EBITDA contracted by 21% to ₹936 crore from ₹1,186 crore, with profit after tax plummeting by 98% to ₹10 crore from ₹535 crore. The company's three primary segments - Living Essentials, Industrial Essentials, and Farm Essentials - demonstrated varying profitability, with Living Essentials showing improved performance and Farm Essentials remaining profitable.

India operations delivered strong results, while US, UK, and Kenya operations faced significant challenges. Tata Chemicals outlined a strategic agenda focused on operational excellence, sustainability, and portfolio transformation, including a Global Capability Centre in GIFT City and initiatives in Industrial Internet of Things and sustainability.