Tata Chemicals Slips Into ₹50 Crore Loss In Q2, Rising Energy Costs & Weak Soda Ash Prices Hit Earnings

Mumbai: Tata Chemicals Limited reported a consolidated net loss of Rs 50 crore for the second quarter of FY27, compared with a net profit of Rs 154 crore in the corresponding quarter last year, as rising costs and weaker soda ash prices weighed on profitability.

Despite the loss, the company's revenue increased, supported by higher sales volumes in India and the United States.

Revenue Growth

Revenue from operations rose 8 per cent year-on-year to Rs 4,177 crore in the July-September quarter, against Rs 3,877 crore in the same period last year.

The growth was driven by improved volumes in India and the US, along with better price realisations in the domestic market.

However, lower global soda ash realisations, reduced other income and weaker contributions from joint ventures affected overall earnings.

Rising Costs

Higher energy, freight and logistics expenses remained major challenges during the quarter.

Tata Chemicals said a sharp increase in natural gas prices in the United Kingdom significantly affected its consolidated financial performance.

The prolonged Middle East conflict also pushed up the cost of essential inputs, including limestone and carbon dioxide.

Additionally, the temporary suspension of operations in Kenya added pressure to the company's performance.

Global Challenges

Managing Director and CEO R Mukundan said Tata Chemicals delivered resilient operational performance despite difficult global market conditions.

Higher production volumes, improved efficiencies and disciplined cost management helped cushion the impact of rising expenses.

However, global oversupply and subdued demand continued to put pressure on soda ash prices.

Exports from the United States to Southeast Asia were particularly affected by commercially unviable pricing.

Future Outlook

Mukundan said the company's immediate focus would remain on operational efficiency, structural cost reductions, stronger cash generation and disciplined capital allocation.

Tata Chemicals expects the external business environment to remain challenging in the near term.

Nevertheless, management believes its integrated operations, financial discipline and ongoing portfolio transformation will support long-term resilience.

The company aims to strengthen profitability while navigating volatile energy markets, changing global trade flows and persistent pricing pressures across the soda ash industry.