Tata Chemicals Limited Earnings Summary — Q1 FY2027
Tata Chemicals Reports Flat Net Profit Amid Revenue Growth and Segment Reorganization
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue grew 23.8% sequentially in Q1 FY2027.
- Revenue of ₹4,255 Cr is 14.4% higher year-on-year.
- Revenue has compounded at 9.4% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit of ₹-17 Cr is 106.7% below the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Operating margin stands at 12.6% in Q1 FY2027.
- Operating margin compressed by 481 bps year-on-year.
- Over the last two years operating margin has contracted by 251 bps.
- PBT margin is 2.6%.
- Expenses grew 21.1% against revenue growth of 14.4%.
- Operating profit of ₹538 Cr is 17.1% lower year-on-year.
- Operating leverage has been under pressure recently.
- 2 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 51/100 (Moderate) on the latest 10 quarters.
- Business momentum has softened and warrants monitoring.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 4,255 | 3,438 | 3,550 | 3,877 | 3,719 | 3,509 | 3,590 | 3,999 | 3,789 | 3,475 |
| Expenses | Stable | 3,717 | 3,164 | 3,205 | 3,340 | 3,070 | 3,182 | 3,156 | 3,381 | 3,215 | 3,032 |
| Operating Profit | Volatile | 538 | 274 | 345 | 537 | 649 | 327 | 434 | 618 | 574 | 443 |
| Operating Margin | Improving | 12.6% | 8.0% | 9.7% | 13.8% | 17.4% | 9.3% | 12.1% | 15.4% | 15.2% | 12.8% |
| Other Income | Volatile | 56 | -1,760 | 21 | 128 | 138 | 29 | -10 | 152 | 116 | -861 |
| Interest | Stable | 148 | 153 | 146 | 144 | 147 | 137 | 148 | 145 | 133 | 130 |
| Depreciation | Stable | 336 | 343 | 293 | 285 | 280 | 293 | 280 | 277 | 273 | 271 |
| Profit Before Tax | Volatile | 110 | -1,982 | -73 | 236 | 360 | -74 | -4 | 348 | 284 | -819 |
| Tax | Volatile | 50 | 134 | -4 | 82 | 44 | -25 | 17 | 81 | 94 | 22 |
| Net Profit | Volatile | -17 | -2,132 | -93 | 77 | 252 | -56 | -53 | 194 | 150 | -850 |
| Net Margin | Volatile | -0.4% | -62.0% | -2.6% | 2.0% | 6.8% | -1.6% | -1.5% | 4.8% | 4.0% | -24.5% |
Key Takeaways
- Revenue from operations increased 14.4% year-over-year to ₹4,255 crore, driven by growth across Living and Farm Essentials.
- The Group reported a net loss of ₹17 crore attributable to equity shareholders, a sharp decline from a profit of ₹252 crore in the same period last year.
- Operating margins compressed significantly YoY to 5.15% from 9.92%, affected by higher freight and forwarding charges (up 38%) and power costs.
- Effective April 1, 2026, the company reorganized its reporting segments into Living Essentials, Industrial Essentials, and Farm Essentials.
- Living Essentials segment revenue reached ₹1,064 crore, while Farm Essentials (including Rallis India) showed a volume-driven recovery to ₹1,022 crore.
- Industrial Essentials (Soda Ash) faced margin pressure, reporting a segment loss of ₹70 crore compared to a profit of ₹131 crore in the prior year's quarter.
- A voluntary reversal of ₹43 crore in provisions for performance incentives and retirals helped offset some employee benefit expenses.
Management Guidance
Management expects global demand to remain flat in the near term due to soda ash excess capacity and weak macro conditions. While renewable energy sectors like solar glass and lithium carbonate are long-term demand drivers, the immediate focus is on protecting margins, preserving cash flows, and growing non-soda ash revenue.
Sentiment Shift
Improving
While YoY comparisons are weak due to the prior year's higher realizations, the sequential jump from the Q4 loss (which included a large impairment) indicates an operational recovery.
Outlook
The outlook remains range-bound for soda ash pricing as capacity additions in China and geopolitical risks cloud visibility. However, robust domestic demand in India and the mothballing of some global capacities (US/Solvay) are expected to help balance the demand-supply equation over time.
From the Annual Report (Key Quotes)
“Global demand is expected to be broadly flat in the near term, constrained by weak macroeconomic conditions and soda ash excess capacity.”
“We would be focusing on growing non-soda ash revenue in line with long-term strategic objective.”
“Geopolitical risk and ongoing tariff uncertainties continue to cloud the global demand visibility.”
Official Quarterly Documents
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This summary is AI-generated from Tata Chemicals Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.