Q3 Results: Tata Group’s Tata Chemicals Ltd has reported weak results in the third quarter (Q3). The company’s consolidated loss widened further on an annual basis due to declining operating earnings and rising costs.
The company suffered a net loss of Rs 93 crore in the December quarter. This loss in the same quarter last year was Rs 53 crore. That means there was a clear increase in losses on an annual basis.
Dull market, slight decline in revenue
Tata Chemicals’ revenue declined by 1.1 percent to Rs 3,550 crore. A year ago it was Rs 3,590 crore. This decline reflects weak demand and sluggish market conditions.
Operating performance was more impacted than revenue. EBITDA declined by 20.5 percent to Rs 345 crore, compared to Rs 434 crore in the same quarter last year. Along with this, EBITDA margin also declined to 9.72 percent, which was 12.09 percent a year ago.
₹54 crore impact of labor code
There was also a labor code impact of Rs 54 crore on Tata Chemicals’ earnings during the December quarter. Due to this, the profitability which was already under pressure became further weak.
Pressure in the first half too
Tata Chemicals’ consolidated revenue declined 2 per cent to Rs 7,596 crore in the first half of FY26 (H1FY26). Whereas EBITDA stood at Rs 1,186 crore, which is slightly less than Rs 1,192 crore in the same period last year.
These quarterly results clearly show that low margins and rising costs remain a big challenge for the company. Revenue didn’t fall much, but weak operating leverage widened losses.
Status of Tata Chemicals shares
Shares of Tata Chemicals closed 2.14 per cent lower at Rs 727 on the NSE on Monday, February 2. The stock is down 25.31% in the last 6 months. The market cap of the company is Rs 18.49 thousand crore.
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