Tata Chemicals (TATACHEM) investor relations material

Executive summary

• Soda ash demand remains flat globally, with India showing robust growth while China and the US see marginal declines; oversupply and weak macroeconomics continue to pressure prices and margins.

• Q3FY26 and 9MFY26 performance was impacted by lower soda ash realizations, though fixed expenses and capex were lower year-over-year.

• Standalone performance was stable due to higher volumes and cost management, despite subdued pricing and a sharp EBITDA decline, especially in the US.

• Strategic expansions in India and the UK are delivering additional volumes, and new projects are underway in India, the UK, and Kenya.

• Debt increased due to unfavorable market conditions and rupee depreciation, but the balance sheet remains robust with low leverage (debt-to-equity of 0.31).

Financial highlights

• Consolidated revenue for Q3FY26 was ₹3,550 crore, down from ₹3,590 crore in Q3FY25; EBITDA dropped to ₹345 crore from ₹434 crore.

• PAT for Q3FY26 was a loss of ₹15 crore, compared to a profit of ₹49 crore in Q3FY25.

• Standalone revenue rose 3% year-over-year to ₹1,204 crore; standalone EBITDA increased 9% to ₹228 crore.

• Exceptional charge of ₹54 crore (consolidated) and ₹14 crore (standalone) related to new labor code and plant closure.

• Net debt stands at ₹5,596 crore, excluding ₹772 crore in leases.

Outlook and guidance

• Near-term soda ash pricing expected to remain subdued due to oversupply and high inventories; medium- to long-term demand outlook positive, driven by solar PV and EV sectors.

• UK operations expected to reach break-even in Q4 and return to profitability next year as fixed cost savings and higher-margin products ramp up.

• US volumes may decline as loss-making export contracts are avoided; domestic and nearby markets prioritized for higher realizations.

• The company continues to monitor regulatory changes and expects further updates on the impact of new labour codes.