Tata Chemicals Q4 results: Net loss narrows to Rs 56 crore YoY; board declares Rs 11 dividend, okays fund raise plan

Tata Chemicals on Wednesday, Might 7, reported a consolidated web loss of Rs 56 crore for the quarter ended March 31, 2025, a pointy enchancment in contrast to the Rs 841 crore loss it posted in the identical interval final 12 months. The numerous discount in losses comes as the corporate recorded steady topline progress, at the same time as working margins got here below stress. Consolidated income from operations stood at Rs 3,509 crore for the January-March quarter, up 1.0 per cent year-on-year from Rs 3,475 crore. The corporate’s earnings earlier than curiosity, taxes, depreciation and amortisation (EBITDA) declined 26 per cent YoY to Rs 327 crore from Rs 443 crore, whereas EBITDA margin compressed to 9.3 per cent from 12.7 per cent within the year-ago interval.

Dividend introduced; file date but to be disclosed

Alongside its quarterly efficiency, the Tata group firm additionally introduced a dividend of Rs 11 per fairness share for FY25. Nonetheless, the file date to decide eligible shareholders for the dividend has not but been disclosed.

Q4 forecast vs precise 

Zee Enterprise analysis had earlier projected that Tata Chemicals would swing to a revenue of Rs 117 crore for Q4 FY25. Analysts additionally anticipated income to rise by 4.0 per cent to Rs 3,614 crore and EBITDA to develop 5.6 per cent to Rs 468 crore, with margin growth to 12.9 per cent.

Nonetheless, the reported numbers missed all key estimates. The precise EBITDA was considerably decrease than forecast, and margins narrowed as an alternative of increasing. The miss was seemingly due to continued softness in soda ash realisations and enter price pressures.

Market response: Inventory below stress, trades 21 per cent decrease YoY

On the outcomes day, Tata Chemicals shares closed 3.1 per cent decrease at Rs 819.4 apiece on the BSE. The inventory has fallen practically 21 per cent over the previous 12 months, underperforming the broader Nifty50 index, which has gained round 8.7 per cent in the identical interval.

Outlook: Pricing stress, international volumes key to watch

Whereas the narrowing of losses is a constructive takeaway, the operational efficiency indicators challenges in margin stability and quantity progress. Traders will carefully monitor administration commentary on soda ash pricing developments, North American efficiency, and the outlook on international demand for each fundamental and specialty chemical compounds.

The corporate had confronted an distinctive loss of Rs 963 crore in Q4 FY24, which had led to the steep web loss final 12 months. With no such distinctive objects this time, Tata Chemicals has managed to present a cleaner bottomline, although weaker-than-expected working efficiency stays a priority.