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Tata Chemicals Ltd reported a weak financial performance in the third quarter, with consolidated losses widening year-on-year amid lower operating earnings and higher cost pressures.
The company posted a net loss of ₹93 crore for Q3, compared with a loss of ₹53 crore in the corresponding quarter last year. Revenue declined marginally by 1.1% year-on-year to ₹3,550 crore from ₹3,590 crore, reflecting subdued market conditions during the period.
Operating performance deteriorated more sharply, with EBITDA
falling 20.5% to ₹345 crore from ₹434 crore a year earlier. As a result, EBITDA margins contracted to 9.72% from 12.09% in the year-ago quarter. The quarter also saw a labour code impact of ₹54 crore, which weighed further on profitability.
The Q3 numbers point to continued pressure on earnings, with lower margins offsetting relatively stable revenue levels. Cost-related challenges and weaker operating leverage contributed to the higher losses during the quarter.
Second quarter
The Q3 results follow a sharp decline in profitability reported in the second quarter of FY26. Tata Chemicals had posted a 60% year-on-year fall in consolidated net profit to ₹77 crore for the quarter ended September 2025, compared with ₹194 crore in the same period last year.
Revenue in Q2 declined 3.1% to ₹3,877 crore from ₹3,999 crore, impacted by the reconfiguration of UK operations and subdued market conditions. EBITDA stood at ₹537 crore, down 13% from ₹620 crore in Q2FY25, mainly due to lower volumes and weaker realisations, partially offset by cost management measures. EBITDA margins contracted to 13.8% from 15.5% a year earlier.
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On a standalone basis, Q2, revenue rose 19% year-on-year to ₹1,204 crore, supported by higher volumes. EBITDA increased 67% to ₹240 crore, while profit after tax from continuing operations rose 80% to ₹178 crore.
For H1FY26, consolidated revenue stood at ₹7,596 crore, down 2% year-on-year, while EBITDA came in at ₹1,186 crore, compared with ₹1,192 crore a year ago.
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Shares of Tata Chemicals Ltd closed lower on the NSE at ₹727, down ₹15.90 or 2.14% today, February 2.
