Tata Chemicals Navigates Global Headwinds with Strategic Focus in Q2 FY26

Tata Chemicals Limited, a prominent player in the global chemical industry, recently announced its financial results for the second quarter and half year ended September 30, 2025. The company's performance reflects a mixed bag, with strong domestic growth in India offsetting global headwinds, particularly in the oversupplied soda ash market. While consolidated revenues saw a marginal decline, strategic initiatives and cost control measures are positioning the company for long-term sustainable growth.

For Q2 FY26, Tata Chemicals reported a consolidated revenue of ₹3,877 crore, a slight decrease from ₹3,999 crore in Q2 FY25. Consolidated EBITDA stood at ₹537 crore, down from ₹618 crore in the prior year. This dip was primarily attributed to lower realizations across all geographies and the impact of reconfiguring UK operations, including the cessation of Lostock sales. However, the standalone performance in India painted a brighter picture, with revenue increasing by 19% to ₹1,204 crore and EBITDA surging by 67% to ₹240 crore, driven by higher volumes and operational efficiencies.

Navigating a Challenging Global Market

The global soda ash market remains a significant factor influencing Tata Chemicals' performance. The market is currently oversupplied, leading to high inventory levels, especially in China, and consequently, weak pricing. Management highlighted a substantial decline in Chinese soda ash prices, impacting profitability across regions. Despite these short-term challenges, the company maintains a positive outlook for the medium to long term, driven by the increasing demand from sustainability applications such as solar PV and electric vehicles.

To counter the pricing pressures, Tata Chemicals has focused on stringent fixed cost control, which has partially offset the impact of lower realizations. The company also addressed one-time events during the quarter, including a ₹65 crore provisioning in the UK related to the cessation of operations and a $5 million impact in the US due to work-in-progress reduction. The UK operations are now fully reconfigured and are expected to turn positive by Q3 FY26.

Financial Summary Table (Consolidated)

Strategic Growth and Sustainability Initiatives

Tata Chemicals is actively pursuing several strategic initiatives to enhance its operational performance, align with ESG frameworks, and broaden its specialty portfolio. In India, the company plans significant capacity expansions for soda ash, silicate, and bicarb. This includes de-bottlenecking to achieve a 50% increase in Indian soda ash capacity in phases, adding 42,000 tonnes of silicate capacity in Cuddalore, and 60,000 tonnes in Mithapur, alongside 500,000 tonnes of additional soda ash capacity. The recently commissioned 5,000-tonne FOS (fructo-oligosaccharides) capacity is also expected to contribute to domestic market growth.

Sustainability remains a core focus, with the company maintaining an