Tata Chemicals approves ₹910-crore expansion in two plants

Tata Chemicals Ltd on Friday (November 21) said it has approved investments to expand its manufacturing capacities at two key plants. At its Mithapur facility, the company will invest ₹135 crore to increase dense soda ash production by 350 kilo tonnes per annum (ktpa) over the next 24 months. The existing capacity at Mithapur stands at 1,091 ktpa with 90% utilisation.

At its Cuddalore plant in Tamil Nadu, Tata Chemicals will invest ₹775 crore to expand precipitated silica capacity by 50 ktpa over 27 months. The existing silica capacity is 13.8 ktpa, currently operating at 86% utilisation.

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Both expansions will be financed through various options, including internal accruals. The rationale for the soda ash expansion is to meet growing demand driven by sustainability applications, while the silica expansion aims to address rising demand in the rubber and automotive tyre industry.

Tata Chemicals reported a 60% year-on-year decline in consolidated net profit at ₹77 crore for the quarter ended September 2025 (Q2FY26), compared with ₹194 crore in the same period last year.

Revenue fell 3.1% to ₹3,877 crore from ₹3,999 crore a year ago, due to the reconfiguration of the UK and subdued market conditions. EBITDA stood at ₹537 crore, down 13% from ₹620 crore in Q2FY25, mainly on account of lower volume and lower realisation, partially offset by better cost management.

Also Read: Tata Chemicals Q4 | Firm slashes net loss to ₹56 crore, revenue flat; declares dividend of ₹11

Margins contracted to 13.8% from 15.5% a year earlier. The company’s net debt as of September 30, 2025, stood at ₹5,583 crore, excluding lease liabilities of ₹776 crore.

Shares of Tata Chemicals Ltd ended at ₹809.95, down by ₹8.95, or 1.09%, on the BSE today, November 21.