Tata Chemicals declares board meeting date to announce Q1 results 2025. Details here
This update comes at a time when investors are closely watching the company's performance trajectory, following a steep fall in net profit and margins in the recently concluded March quarter.
For the quarter ended March 31, 2025, Tata Chemicals reported a significant downturn in profitability. The company posted a consolidated net loss of ₹ 56 crore, a sharp reversal from the ₹ 850 crore net profit it had recorded in the same quarter last year (Q4FY24). This marked a more than 15-fold year-on-year decline.
Revenue from operations, however, managed to grow marginally by 1 percent year-on-year to ₹ 3,509 crore, up from ₹ 3,475 crore in Q4FY24. This modest increase in revenue came amid persistent pricing pressure across geographies, which continued to weigh on overall profitability.
At the operational level, EBITDA (earnings before interest, tax, depreciation, and amortisation) fell 26 percent to ₹ 327 crore, down from ₹ 443 crore in the year-ago period. Correspondingly, the EBITDA margin shrank to 9.3 percent from 13.8 percent in Q4FY24, highlighting margin compression due to adverse market conditions.
Meanwhile, gross consolidated debt rose sharply during the quarter by ₹ 1,509 crore, reaching ₹ 7,072 crore. This included lease liabilities of ₹ 768 crore. The company attributed the increase in debt to higher working capital requirements across its operations in India, the United States, and the United Kingdom.
For the full fiscal year ended March 2025, Tata Chemicals posted consolidated revenue of ₹ 14,887 crore, a decline from ₹ 15,421 crore in FY24. The drop in revenue was primarily due to weak pricing, which was only partially offset by increased volumes. Full-year EBITDA declined significantly to ₹ 1,953 crore from ₹ 2,847 crore, reflecting ongoing cost pressures and narrower margins. Profit after tax (before exceptional items and non-controlling interest) from continuing operations came in at ₹ 479 crore.
Shares of Tata Chemicals were trading at ₹ 932.20 ahead of the earnings announcement. The stock remains about 25 percent below its 52-week high of ₹ 1,244.70, which it had touched in October 2024. Its 52-week low stands at ₹ 756.45, recorded in March 2025.
Over the last one year, the stock has shed nearly 12 percent of investor wealth. On a month-on-month basis, it slipped 0.7 percent in July (as of mid-month), after rising 5.5 percent in June and 6 percent in May. April saw a marginal decline of 3 percent, but the stock had gained 11.2 percent in March. However, the early part of 2025 was challenging for the stock, as it plunged 21 percent in February and 6.3 percent in January.
Despite the recovery in the second quarter of calendar 2025, the stock continues to trail its yearly peak, reflecting the market's cautious stance amid volatile performance and weak earnings visibility.
Disclaimer: The views and recommendations expressed above are those of individual analysts or broking companies. Investors are advised to consult certified financial advisors before making any investment decisions.
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