Tata Chemicals Reports Q3FY26 Loss of ₹690M Despite Revenue of ₹3,550 Crore
Tata Chemicals announced challenging Q3FY26 results with consolidated net loss widening to ₹690 million from ₹210 million year-on-year, while revenue declined marginally to ₹3,550 crore. The company faced headwinds from oversupplied soda ash markets and pricing pressures, though standalone performance showed resilience with higher volumes and cost management.
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Tata Chemicals has announced its Q3FY26 quarterly results for the quarter ended December 31, 2025, reporting a consolidated net loss of ₹690 million compared to a loss of ₹210 million in the corresponding quarter of the previous year. The chemical manufacturer's revenue from operations declined to ₹3,550 crore from ₹3,590 crore year-on-year.
Financial Performance Overview
The company's third-quarter results demonstrate challenging operational conditions across key financial metrics. The consolidated net loss widened significantly, while revenue experienced a marginal decline during the reporting period.
| Financial Metric | Q3 FY26 | Q3 FY25 | Change |
|---|---|---|---|
| Consolidated Net Loss | ₹690 million | ₹210 million | Loss widened by ₹480 million |
| Revenue from Operations | ₹3,550 crore | ₹3,590 crore | Declined by 1% |
| EBITDA | ₹345 crore | ₹434 crore | Declined by ₹89 crore |
| EBITDA Margin | 9.72% | 12.09% | Compressed by 237 basis points |
Management Commentary and Market Conditions
Commenting on the results, R. Mukundan, Managing Director & CEO, stated that soda ash markets continue to remain oversupplied, with high inventory levels across most regions. Prices softened further during Q3FY26, reflecting adverse demand-supply dynamics. The near-term outlook for the soda ash market remains subdued and uncertain, with limited visibility on any immediate improvement.
Despite these headwinds, the company's standalone performance has been supported by higher volumes and disciplined cost management, resulting in a resilient operating performance. The reconfiguration of the UK operations has been completed, with a strategic shift toward value-added, non-cyclical products.
Exceptional Items and Regulatory Impact
The company recorded exceptional items totaling ₹54 crore during the quarter related to the implementation of new Labour Codes notified by the Government of India. These codes consolidate existing labour laws and primarily impact gratuity liability calculations due to changes in wage definitions.
| Exceptional Items | Q3 FY26 Impact |
|---|---|
| New Labour Code Implementation | ₹54 crore |
| Profit After Tax (before exceptional items) | ₹(15) crore |
Strategic Investments and Expansion Plans
The Board approved an investment of ₹515 crore for setting up a greenfield manufacturing facility for Iodised Vacuum Salt Dried (IVSD) at Valinokkam, Ramanathapuram district, Tamil Nadu. The proposed facility will have a capacity of 210 kilo tonnes per annum (KTPA), enhancing the company's ability to meet growing demand for high-quality iodised salt.
During the quarter, the company commissioned Pearl Silica facility with a capacity of 3,000 MTPA at Cuddalore, Tamil Nadu, and FOS L55 facility with a capacity of 4,500 MTPA at Mambattu.
Nine-Month Performance Highlights
For the nine months ended December 31, 2025, the company reported revenue from operations of ₹11,146 crore, down by 2% compared to the corresponding period of the previous year. EBITDA stood at ₹1,531 crore compared to ₹1,626 crore in 9MFY25.
| Nine-Month Metrics | FY26 (9M) | FY25 (9M) | Change |
|---|---|---|---|
| Revenue from Operations | ₹11,146 crore | ₹11,378 crore | Declined by 2% |
| EBITDA | ₹1,531 crore | ₹1,626 crore | Declined by ₹95 crore |
| Profit After Tax (before exceptional items) | ₹520 crore | ₹491 crore | Increased by ₹29 crore |
Board Approval and Compliance
The Board of Directors approved the unaudited consolidated and audited standalone financial results at their meeting held on February 2, 2026. The results have been reviewed by statutory auditors and comply with Regulation 33 and Regulation 52(4) of SEBI Listing Regulations. Net debt as of December 31, 2025, stood at ₹5,596 crore (excluding lease of ₹772 crore).
Historical Stock Returns for Tata Chemicals
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.19% | +1.84% | -3.27% | -24.04% | -24.65% | +47.07% |
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