Tata Chemicals has approved a major investment of ₹5.15 billion for the establishment of a new greenfield manufacturing facility dedicated to iodised vacuum salt production. This strategic decision marks a significant expansion in the company's manufacturing infrastructure and demonstrates its commitment to strengthening its position in the salt business segment.

Investment Details

The approved investment represents a substantial financial commitment by the company to enhance its production capabilities in the specialized iodised vacuum salt segment.

Strategic Significance

The establishment of this new greenfield facility will expand Tata Chemicals' manufacturing footprint in the salt business. The focus on iodised vacuum salt production indicates the company's strategic approach to cater to specific market demands in the salt segment. This investment will contribute to increasing the company's overall production capacity and operational capabilities.

Manufacturing Enhancement

The new facility will be specifically designed for iodised vacuum salt manufacturing, representing advanced production capabilities. This greenfield project will enable the company to implement modern manufacturing processes and technologies from the ground up, potentially improving operational efficiency and product quality standards.

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.

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.

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.

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).