Tata Chemicals has delivered a mixed performance in the second quarter of FY27, with its standalone operations posting healthy growth in revenue and EBITDA.

 

This is even as its consolidated performance came under pressure from weak global soda ash prices, rising energy and logistics costs and the temporary suspension of operations in Kenya.

 

The company's standalone revenue from operations rose 8% year-on-year to Rs. 1,303 crore in Q2FY27, while EBITDA surged 22% to Rs. 292 crore. However, profit after tax from continuing operations declined 31% to Rs. 122 crore.

 

At the consolidated level, revenue from operations increased 8% to Rs. 4,177 crore. But EBITDA fell sharply to Rs. 381 crore from Rs 537 crore in the year-ago quarter. The company swung to a loss after tax of Rs. 50 crore, against a profit of Rs. 219 crore in Q2FY26.

 

The consolidated performance was weighed down by lower realisations in overseas subsidiaries, particularly US exports to Southeast Asian markets, higher energy and logistics costs in the UK and the temporary suspension of Kenyan operations.

 

Commenting on the performance, R. Mukundan, Managing Director and CEO of Tata Chemicals, said, “During Q2FY27, Tata Chemicals Limited delivered a resilient operating performance in a challenging global environment. Higher sales, production volumes, improved operating efficiencies and disciplined cost management helped mitigate the impact of continued pressure on soda ash prices and elevated input, energy and logistics costs.

 

“Market conditions for soda ash remain challenging, with global oversupply, subdued demand and evolving trade flows continuing to weigh on prices and realisations. Exports from the US to Southeast Asia were particularly impacted by unremunerative pricing. In this environment, our immediate priorities remain operational excellence, structural cost reduction, cash generation and disciplined capital allocation."

 

He added: "Despite a resilient standalone operating performance, our consolidated results were impacted by a sharp rise in UK natural gas costs. The prolonged Middle East conflict continued to drive inflation in key inputs, including limestone and CO₂, as well as energy, freight, and logistics costs across our operations. Additionally, the temporary suspension of Kenya operations weighed on consolidated performance.

 

“We continue to advance our LIFE strategy, progressively shaping the portfolio towards sustainability-led, application-focused and less cyclical businesses, while strengthening the competitiveness of our core operations.”

 

The global soda ash market continues to face a difficult operating environment, with excess capacity, subdued demand and changing trade flows weighing on prices and realisations.

 

Tata Chemicals said unremunerative pricing particularly affected exports from the US to Southeast Asia, while elevated energy, freight and logistics costs added to the pressure on overseas operations.

 

The company is focusing on operational efficiencies, structural cost reductions, optimisation of its global manufacturing and supply chain footprint, cash generation and disciplined capital allocation to navigate the challenging environment.

 

On the outlook for its businesses, Tata Chemicals said demand in its Living Essentials segment remains encouraging, supported by premiumisation and rising consumption across food, feed, pharmaceutical and beverage applications.

 

Salt and bicarbonates are expected to provide stable growth, while prebiotics offer long-term opportunities amid increasing consumer focus on health and wellness.

 

The outlook for Industrial Essentials, particularly soda ash, remains challenging in the near to medium term due to excess global capacity, weak pricing and geopolitical and cost pressures.

 

In Farm Essentials, uneven rainfall and delayed sowing affected demand during parts of the quarter, although Kharif acreage subsequently recovered. The broader agricultural outlook remains cautiously positive, supported by healthy crop coverage, improving irrigation, policy support, technology adoption and resilient rural demand.

 

However, weather volatility, crop-price movements and elevated input costs continue to pose near-term risks.

 

Mukundan said, “While the external environment is likely to remain challenging in the near term, the strength of our integrated operations, disciplined balance sheet and ongoing portfolio transformation provide a strong foundation for building a more resilient and sustainable growth platform.”

 

For the first half of FY27, Tata Chemicals' standalone revenue from operations increased 9% to Rs. 2,584 crore, while EBITDA rose 29% to Rs. 656 crore. Profit after tax from continuing operations, however, declined 4% to Rs. 465 crore.

 

Consolidated revenue for H1FY27 grew 11% to Rs. 8,432 crore, supported by higher volumes despite pricing pressure across regions, except India.

 

Consolidated EBITDA declined to Rs. 936 crore from Rs. 1,186 crore in H1FY26, reflecting weaker overseas realisations, higher UK energy and logistics costs and the temporary suspension of Kenya operations.

 

Profit after tax before exceptional items and non-controlling interest stood at Rs. 10 crore, compared with Rs 535 crore in the corresponding period last year.

 

The company's net debt, excluding leases, stood at Rs. 6,127 crore as of September 30, 2026.

 

With global soda ash markets yet to recover and cost pressures continuing to weigh on overseas operations, Tata Chemicals is banking on operational efficiencies, tighter cost controls and its portfolio transformation strategy to strengthen resilience and sustain long-term growth.