Tata Chemicals Q4 net loss narrows to ₹56 crore, revenue up marginally; board recommends FY25 dividend

Due to continued pricing pressure in all geographies, the company’s revenue marginally grew by 1% year-on-year (YoY) to ₹3,509 crore in the quarter under review, compared to ₹3,475 crore in Q4 FY24.

For the quarter under review, its earnings before interest, tax, depreciation, and amortisation (EBITDA) stood at ₹327 crore, slipping 26% YoY from ₹443 crore in the year-ago period. Its margin shrank to 9.3% from 13.8%.

Tata Chemical’s board has recommended a dividend of ₹11 per share, i.e., 110% for the financial year 2024-25. The dividend, if approved by the members at the ensuing 86th Annual General Meeting (AGM) of the company, will be paid (subject to deduction of tax at source) within five days of the AGM, it said.

The company’s board has approved the proposal for raising funds “by way of a term loan(s) and/or through issuance of non-convertible debentures (NCDs) on a private placement basis, for an amount up to ₹200 crore.”

It has also authorised an internal committee to take all applicable actions in respect of the finalisation of the terms of raising funds and/or the issuance and allotment of NCDs.

Commenting on the results, R. Mukundan, Managing Director & CEO, Tata Chemicals Limited, said, “Market conditions remain challenging even as India continues to grow while China, the US and Western Europe are witnessing slight declines due to reduced demand for flat and container glass. In other regions, Asia (excluding China and India) and the Americas (excluding the USA) have robust demand, while a slight decline is observed in the demand of Africa.”

“Though demand-supply balance softens, tariff uncertainties will continue to weigh on the market; the medium- and long-term outlook remains positive, driven by sustainability trends,” he further said.

Tata Chemical’s soda ash unit in Lostock, UK, ceased its operations in early February 2025, resulting in an additional exceptional charge of ₹55 crore.

The firm’s gross debt as of March 31, 2025, stood at ₹7,072 crore (including a lease of ₹768 crore), up by ₹1,509 crore on account of higher working capital loans in India, the US & the UK.

On Wednesday, shares of Tata Chemicals closed at ₹825 apiece, rising 1.03%.

As a part of Tata Group, Tata Chemicals is a supplier to the glass, detergent, industrial and chemical sectors. The company has a strong position in the crop protection business through its subsidiary company, Rallis India Limited. Tata Chemicals has R&D facilities in Pune and Bangalore.