1. Opening HookWhile everyone’s busy calculating how many Teslas fit into the EV boom, Tata Chemicals is quietly figuring out how to make soda ash sexy again. With China flooding markets like it’s running a sale and tariffs adding their usual spice, the company’s Q2FY26 call was half chemistry, half therapy. But don’t scroll away just yet — between the UK shutdowns, anti-dumping drama, and some “general-purpose” NCD raising, things are about to get more reactive than a high school lab experiment.
2. At a Glance
- Standalone Revenue up 19%– No spreadsheets were harmed, just Indian operations doing heavy lifting.
- Standalone EBITDA up 67%– Someone found their margin goggles.
- Consolidated Revenue down 3%– Blame the ghost of Lostock, now officially retired.
- Consolidated EBITDA down 13%– One-time hits, not a new habit (allegedly).
- PAT flat (after one-offs)– Provision parties in the UK can be expensive.
- Net Debt up slightly– Currency tantrums and high inventories joined forces.
3. Management’s Key Commentary
“Global demand remains flat, though India and non-China Asia are holding strong.”(Translation: Everyone’s broke except us and a few lucky neighbours.)
“China’s soda ash prices declined 56–58% since FY23 due to overcapacity.”(Translation: China built too much again — because why not?)
“Standalone EBITDA up 67% — driven by higher volumes and operational efficiency.”(Translation: India’s carrying the global cousins like a dutiful elder sibling 😏)
“UK reconfiguration complete; expect positive EBITDA by Q4.”(Translation: The ghost factory’s finally exorcised. Fingers crossed it doesn’t respawn.)
“US EBITDA hit by $5 million under-absorption of fixed costs.”(Translation: We made less because of… accounting yoga.)
“Kenya litigation resolved in our favor.”(Translation: We finally stopped paying lawyers to argue over land rates.)
“Anti-dumping duty recommendation could lift market prices.”(Translation: Our lobbyists have been busy. We call it ‘mathematical calculation’.)
“We’re watching tariff issues, but medium-term outlook remains positive.”(Translation: Long-term
optimism, short-term aspirin.)
4. Numbers Decoded
| Metric | Q2FY26 | Q2FY25 | YoY Change | Comment |
|---|---|---|---|---|
| Consolidated Revenue | ₹3,877 Cr | ₹4,000 Cr | -3% | Lostock ghosted. |
| Standalone Revenue | ₹1,662 Cr | ₹1,398 Cr | +19% | India flexing hard. |
| Consolidated EBITDA | ₹537 Cr | ₹618 Cr | -13% | Pricing pressure + one-offs. |
| Standalone EBITDA | ₹240 Cr | ₹144 Cr | +67% | Salt and soda solidarity. |
| PAT (Standalone) | ₹178 Cr | ₹99 Cr | +80% | Cost control got caffeinated. |
| Net Debt | ~₹6,400 Cr | ₹6,000 Cr | +6% | FX and inventory bloat. |
One-time provisions (~₹105 Cr) in the UK and the US kept the profit from looking better. Without that, results would’ve fizzed a bit more.
5. Analyst Questions
- HSBC:Is Kenya finally drama-free?Mgmt:“Unless someone files in Supreme Court, we’re good.”(Translation:We’re cautiously optimistic, aka lawyer-broke.)
- Axis Capital:US EBITDA tanked — why?Mgmt:“Inventory drawdown, exports timing, internal rework.”(Translation:Because… Excel sheets happen.*)
- Morgan Stanley:Can you still hit the ₹600 Cr savings target?Mgmt:“Maybe 75% — currency acted moody.”(Translation:Blame the pound, not us.*)
- Kotak:Why the ₹1,500 Cr NCD?Mgmt:“For growth — Soda Ash, Silicate, and Bi-carb.”(
