Tata Chemicals Limited (TATACHEM)
Small CapChemicals stocks · Small cap · NSE
Tata Chemicals Limited is a global producer of basic chemistry products like soda ash, bicarb, and salt, with operations across four continents. It also has a specialty products portfolio including specialty silica and prebiotics, and a crop care business through its subsidiary Rallis India.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust needs verification, price trend argues for patience, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Bad · 0/100PAT -81% YoY · margin compression · Rev +14% YoY · +24% QoQ
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹4,255 Cr | +14.4% | +23.8% |
| EBITDA | ₹538 Cr | -17.1% | +96.4% |
| Operating margin | 13.0% | -400 bps | +500 bps |
| PAT | ₹60 Cr | -81.0% | NDF |
| PAT margin | 1.4% | -709 bps | +6296 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Q4FY26 consolidated results impacted by lower soda ash realizations and a significant ₹1,837 Cr goodwill impairment in the US, leading to a net loss of ₹279 Cr. Full-year FY26 revenue and EBITDA also declined.
The company's core soda ash business faces significant headwinds from lower realizations and excess global capacity, leading to substantial impairment charges and a net loss in Q4FY26. While non-soda ash revenue shows growth and new capacities are coming online, the overall profitability is under pressure, and debt has increased.
Growth in Non-Cyclical Business
positiveNon-Soda ash revenue grown by 14% from ₹6,118 Cr in FY25 to ₹6,946 Cr in FY26, aligning with company's focus.
New Capacity Deliveries
positiveExpansion of Soda Ash (230kT) and Bi-carb (140kT) in Mithapur, and new salt plant (70kT) in UK, are delivering additional volumes in FY26.
Strategic Acquisitions & Specialty Expansion
positiveAcquisition of premium pharma grade Bi-carb plant in Singapore completed Mar 2026. Pearl grade Silica 3000 MTPA and FOS L 55 – 4500 MTPA commissioned in FY26.
Iodised Vacuum Salt Dried (IVSD) plant – Mithapur, Gujarat
neutralCommissioning Q1 FY2028, 82.5 KTPA capacity addition, ₹100 Cr capex.
Precipitated Silica Plant – Cuddalore, Tamil Nadu
neutralCommissioning Q4 FY2028, 50 KTPA capacity addition, ₹775 Cr capex.
Dense Soda Ash – Mithapur, Gujarat
neutralCommissioning Q3 FY2028, 350 KTPA capacity addition, ₹135 Cr capex.
Iodised Vacuum Salt Dried (IVSD) plant – Valinokkam, Tamil Nadu
neutralCommissioning Q2 FY2029, 210 KTPA capacity addition, ₹515 Cr capex.
Sustainability-Driven Demand
positiveSustainability-driven demand (solar PV, EV) supports a positive medium-to-long-term trend for the company's products.
Lower Soda Ash Realizations
negativePerformance for Q4FY26 and FY26 impacted by lower soda ash realisations, particularly unremunerative prices in South-east Asia.
Weak Global Macroeconomic Conditions
negativeGlobal demand growth is expected to remain broadly flat in the near term, constrained by weak macroeconomic conditions and excess capacity.
Increased Production & Shipping Costs
negativeThe Middle East conflict has driven up energy and raw material prices, increasing soda ash production costs and pushing higher shipping expenses.
Goodwill Impairment
negativeImpairment charge of ₹1,837 Cr on goodwill in US recognized amidst current soda ash market conditions.
Deferred Tax Assets Write-off
negative₹182 Cr of deferred tax assets write off recognized in US.
Increased Debt Levels
negativeDebt increased to ₹5,961 Cr (Mar 26) from ₹4,884 Cr (Mar 25) due to lower cash generation and ₹460 Cr exchange rate impact on overseas loans.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Both sequential (QoQ) and annual (YoY) comparisons are crucial. QoQ highlights the immediate impact of market conditions and impairment on profitability, while YoY reflects the broader trend of declining realizations and the effect of strategic shifts like plant closures and new capacity additions.
Consolidated Revenue (Q4FY26)
negative₹3,438 Cr (vs PQ ₹3,550 Cr, PY ₹3,509 Cr)
Consolidated EBITDA (Q4FY26)
negative₹274 Cr (vs PQ ₹345 Cr, PY ₹327 Cr)
Consolidated PAT (Q4FY26)
negative₹(279) Cr (vs PQ ₹(15) Cr, PY ₹(12) Cr)
Consolidated Revenue (FY26)
negative₹14,584 Cr (vs PY ₹14,887 Cr)
Strategic Direction on Track
neutralStrategic direction of the Company is on track, focusing on growing non-cyclical business and broadening the specialty portfolio.
Capitalizing on Growth Opportunities
neutralRobust balance sheet and low leverage (debt-to-equity of 0.36) to capitalize on value-accretive organic and inorganic growth opportunities.
Operational Efficiency Improvements
positiveTimely cessation of the Lostock UK soda ash plant in Jan 2025 helped stem ongoing EBITDA erosion and resulted in a structurally lower fixed-cost base.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Global Soda Ash Realizations | Lower realization across all geographies, particularly unremunerative prices in South-east Asia. | Improvement in global soda ash pricing and demand sentiment, especially for US exports. |
| Non-Soda Ash Revenue Contribution | Grown by 14% in FY26 to ₹6,946 Cr, in line with strategic focus. | Continued growth and increasing share of non-cyclical businesses to offset cyclicality. |
| Net Debt Levels | ₹5,961 Cr (Mar 26), up from ₹4,884 Cr (Mar 25). | Stabilization or reduction in net debt, especially given ongoing capex plans and lower cash generation. |
| Project Commissioning & Ramp-up | Several projects commissioned in FY26, others planned till FY29. | Timely commissioning and effective utilization ramp-up of new capacities to contribute to volumes and profitability. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
37Bearishfull bear SMA stack · SMA20 -5.5% / mo · MACD + · near 52W low
Technical chart
TATACHEMdaily · 1Y · AUTO-12.2%Daily technical trend read
Bearish setupTrend is weak — long-term trend down. RSI 36.
- Price < SMA20 < SMA50 < SMA200 — full bearish stack.
- SMA20 falling (~5.8% over last month) — short-term momentum negative.
- RSI(14) at 36 — falling, no extreme reading.
- MACD above signal but histogram contracting — bullish momentum cooling.
- 39% off 52W high · 8% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Relative Strength & Trend Stage
- Price is 10.7% below the 30-week proxy.
- The 50-DMA is below the 30-week proxy and its slope is falling -1.6%.
- Both 3-month and 6-month returns are negative.
Valuation & score drivers
U-Score 35 · WATCHLIST · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 35 · WATCHLIST · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
WATCHLISTWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Balance sheet contributes 10/15 to the score.
- Cash flow contributes 4/10 to the score.
Main drags
- Fair-value margin of safety is negative at -76.2%.
- Quality is weaker at 0/20; verify the latest quarterly trend.
- Valuation is weaker at 7/30; verify the latest quarterly trend.
Cyclical valuation: normalized earnings, not just trailing PE
Cyclical companies can look cheapest near peak profits, so IndiaPulse flags value-trap risk separately.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 25th percentile of the scored universe and 17th percentile within Chemicals. Main check: results consistency is weak at 15/100.
Mixed Trust Lite: Promoter pledge is zero. Key concern: 3 latest quarters had PAT decline worse than 25% YoY.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Chemicals: 17th pctile, median 73 · Small: 28th pctile, median 66
145 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸9 years of positive FCF.
Trust risks
- ▸3 latest quarters had PAT decline worse than 25% YoY.
- ▸ROCE is low at 4.1%.
- ▸ROE is low at 3.2%.
- ▸1/4 latest quarters had positive YoY revenue growth.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 24.30
- P/B
- 0.82
- EV/EBITDA
- 13.04
- Market Cap
- 15925.00Cr
Profitability
- ROE
- 3.17%
- ROCE
- 4.06%
- ROA
- 2.54%
- Dividend Y
- 1.76%
Growth (CAGR)
- Revenue 5Y
- 10.00%
- EPS 5Y
- 6.00%
- Revenue 3Y
- -1.00%
- EPS 3Y
- -15.00%
Balance Sheet
- Debt/Equity
- 0.18
- Interest Coverage
- 4.33×
- Altman Z
- 3.25
- Book Value
- 758.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 9/5
- OCF
- 1119.00 Cr
- EPS TTM
- 25.19
Shareholding
- Promoter Hold
- 37.98%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 10%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable names in Chemicals, ranked by similarity
Peers
Business-comparable names in Chemicals, ranked by similarity
Peers
Business-comparable peers in Chemicals — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.