Tata Chemicals
Tata Chemicals
ChemicalsKey Fundamentals
SmallcapCommodity ChemicalsChemicalsTapetide Score
Data-driven rating, 0–100. How it works →
Key Insights
Strengths
2- Stock is trading at 0.73 times its book value
- Company has been maintaining a healthy dividend payout of 82.4%
Weaknesses
3- Company has low interest coverage ratio.
- The company has delivered a poor sales growth of 7.41% over past five years.
- Company has a low return on equity of 1.59% over last 3 years.
Growth Rate
AI Analysis — Bull vs Bear
Tata Chemicals has a market capitalisation of about ₹15,884 crore and trades at 0.74 times book value. Its negative P/E of -7.9 means it is loss-making on a trailing basis, and TTM compounded profit growth stands at -193%. Sales grew 7% compounded over 5 years but fell 5% compounded over 3 years. ROE has dropped from a 10-year average of 10% to 1% last year, and the stock has fallen 33% over the past year.
- The stock trades at a P/B of 0.74, below its book value. Against a ₹15,884 crore market cap, that implies book equity of roughly ₹21,000+ crore.
- The dividend yield is 1.79% and the historical payout ratio is 82.4%, which shows a record of returning cash to shareholders even as earnings weakened.
- The 10-year average ROE of 10% suggests the asset base has produced mid-teens-adjacent returns at better points in the commodity cycle. That gives a reference point if soda ash conditions normalise from the current 1% ROE.
- Over 10 years the stock has compounded at 10%, so long-horizon holders have still seen positive returns despite the 1-year fall of 33%.
- TTM sales growth of 2% has turned positive after a 3-year compounded decline of 5%. This may indicate revenue is stabilising after the soda ash price correction.
- The 5-year compounded profit growth of 3% and sales growth of 7% show the business grew over a full cycle, even though recent 3-year profit CAGR is -51%.
- After a 33% fall over 1 year and a 16% annualised decline over 3 years, a large share of the earnings deterioration may already be reflected in the ₹15,884 crore valuation.
- The P/E of -7.9 means the company is loss-making on a trailing basis. That implies a TTM net loss of roughly ₹2,000 crore against a ₹15,884 crore market cap.
- Compounded profit growth is -193% TTM, -51% over 3 years and -10% over 10 years. This shows earnings deterioration across short and long horizons.
- ROE has fallen to 1% last year and averages 1.59% over 3 years, well below the 10-year average of 10% and likely below the company's cost of equity.
- Interest coverage is low, which raises questions about debt-servicing comfort while profits are negative. The debt-to-equity ratio was not available in the data provided.
- Sales fell at a 5% compounded rate over 3 years, and 10-year compounded sales growth is 0%. This points to limited structural top-line growth beyond commodity-price swings.
- The 82.4% dividend payout, set against a loss-making trailing year, raises questions about whether the 1.79% yield can be sustained if earnings do not recover.
- The stock has returned -33% over 1 year, -16% CAGR over 3 years and -8% CAGR over 5 years, so market sentiment has stayed negative over several periods.
- A P/B of 0.74 combined with an ROE of 1% suggests the discount to book reflects weak returns on the asset base. It may not indicate mispricing.
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- Kenya orders Magadi exit Sep 3
On Sep 3, President Ruto ordered Tata Chemicals Magadi (TCML) to leave Kenya. This followed a July 28 suspension over unpaid royalties, weak local procurement and a mining licence that lapsed in 2023, and the High Court refused interim relief on Aug 7. TCML made ₹586 crore revenue and ₹101 crore EBITDA in FY26, about 3.8% of consolidated revenue and roughly 4-6% of EBITDA. It has a 350,000-tonne soda ash capacity and about 500 jobs.
- Q1 FY27 profit collapses Sep 15
Reports disagree on Q1 FY27 net profit: one says it fell 81% to ₹60 crore, another reports a ₹17 crore loss against ₹525 crore a year earlier. Revenue rose 13-14% to about ₹4,255-4,311 crore, but operating margin fell from 21.2% to 14%.
- Industrial Essentials swings to loss Sep 15
Segment EBIT went from ₹131 crore in Q1 FY26 to a loss of ₹70 crore in Q1 FY27. Global soda ash oversupply pushed Chinese export prices down to $160-180 FOB, and energy costs rose.
- ₹890 crore Kajiado land-rates dispute Sep 3
Kajiado County is demanding KES 12.2 billion (about ₹890 crore) in land rates, and the case is before Kenya's Supreme Court. The company treats it as an external risk, separate from the mining exit.
- Stock down 33% in a year Sep 3
Shares fell 1.9-2.2% to about ₹628-630 on the Kenya news. The stock is down 33% over 12 months and 11% over six months.
- TCNA buys Searles soda ash contracts Sep 15
Tata Chemicals North America paid $21.16 million in a Chapter 11 process for over 500,000 tonnes of Searles Valley Minerals customer contracts. The contracts run from Sep 2026 to Dec 2028 and are expected to bring in more than $110 million of revenue, using existing capacity with no extra capex.
- Tata Sons listing value unlock Sep 15
RBI rejected Tata Sons' request to give up its core investment company registration, which pushes it toward a mandatory listing. Tata Chemicals' 2.53% stake, carried at ₹57 crore, could be worth about ₹25,300 crore at a ₹10 lakh crore valuation, around 162% of its market cap.
- Stock hits 20% upper circuit Sep 15
Shares hit the 20% upper circuit at ₹734.9 with 18.51 lakh buy orders pending. The stock trades at about 0.73x book, the lowest among Tata Group peers.
- Kenya technical committee formed Sep 9
A high-level technical committee was set up, co-led by the Principal Secretary for Mining and the TCML CEO. This gives the company a formal channel with the government to try to resolve the Kenya dispute.
- KPMG replaced by KNAV in UK Sep 26
KNAV Limited replaces KPMG LLP as statutory auditor for four UK subsidiaries, including British Salt, after fee disputes. No accounting issues were reported.
- NSE ESG score of 59 Sep 3
NSE Sustainability gave Tata Chemicals an ESG score of 59 for FY26, assigned independently from public data.
TL;DR: The core business is weak. Q1 FY27 margins fell from 21.2% to 14% on soda ash oversupply, and Kenya's forced exit puts about ₹586 crore of high-margin revenue at risk, plus an ₹890 crore land-rates dispute. Two catalysts are driving the stock instead: the Searles contracts (over $110 million in revenue through 2028) and the possible Tata Sons listing, which could value the 2.53% stake above the company's whole market cap. That sent shares up 20% to ₹734.9. Sentiment is improving even though fundamentals have not, so the Q2 FY27 margin numbers, the Kenya talks and the Tata Sons listing timeline will decide whether the re-rating holds.
Quarterly Results
| Particulars | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 4,218 | 3,998 | 3,730 | 3,475 | 3,789 | 3,999 | 3,590 | 3,509 | 3,719 | 3,877 | 3,550 | 3,438 | 4,255 |
| Expenses | 3,175 | 3,191 | 3,188 | 3,032 | 3,215 | 3,381 | 3,156 | 3,182 | 3,070 | 3,340 | 3,205 | 3,164 | 3,717 |
| Operating Profit | 1,043 | 807 | 542 | 443 | 574 | 618 | 434 | 327 | 649 | 537 | 345 | 274 | 538 |
| OPM % | 25% | 20% | 15% | 13% | 15% | 15% | 12% | 9% | 17% | 14% | 10% | 8% | 13% |
| Other Income | 67 | 187 | 98 | -861 | 116 | 152 | -10 | 29 | 138 | 128 | 21 | -1,760 | 56 |
| Interest | 123 | 145 | 132 | 130 | 133 | 145 | 148 | 137 | 147 | 144 | 146 | 153 | 148 |
| Depreciation | 229 | 234 | 246 | 271 | 273 | 277 | 280 | 293 | 280 | 285 | 293 | 343 | 336 |
| PBT | 758 | 615 | 262 | -819 | 284 | 348 | -4 | -74 | 360 | 236 | -73 | -1,982 | 110 |
| Tax % | 23% | 20% | 26% | 3% | 33% | 23% | 425% | -34% | 12% | 35% | -5% | 7% | 45% |
| Net Profit | 587 | 495 | 194 | -841 | 190 | 267 | -21 | -49 | 316 | 154 | -69 | -2,116 | 60 |
| EPS in Rs | 20.88 | 16.8 | 6.2 | -33.36 | 5.89 | 7.61 | -2.08 | -2.2 | 9.89 | 3.02 | -3.65 | -83.67 | -0.67 |
Profit & Loss
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 17,204 | 14,873 | 10,346 | 10,270 | 10,337 | 10,357 | 10,200 | 12,622 | 16,789 | 15,421 | 14,887 | 14,584 | 15,120 |
| Expenses | 15,305 | 12,777 | 8,249 | 6,926 | 8,538 | 8,411 | 8,693 | 10,303 | 12,969 | 12,574 | 12,934 | 12,779 | 13,426 |
| Operating Profit | 1,900 | 2,096 | 2,097 | 3,344 | 1,799 | 1,945 | 1,506 | 2,319 | 3,820 | 2,847 | 1,953 | 1,805 | 1,694 |
| OPM % | 11% | 14% | 20% | 33% | 17% | 19% | 15% | 18% | 23% | 18% | 13% | 12% | 11% |
| Other Income | 183 | 210 | 293 | 262 | 785 | 6,480 | 254 | 472 | 218 | -507 | 287 | -1,473 | -1,555 |
| Interest | 461 | 525 | 297 | 326 | 354 | 342 | 367 | 303 | 406 | 530 | 563 | 590 | 591 |
| Depreciation | 463 | 526 | 512 | 518 | 568 | 666 | 759 | 806 | 892 | 980 | 1,123 | 1,201 | 1,257 |
| PBT | 1,159 | 1,255 | 1,580 | 2,763 | 1,661 | 7,416 | 634 | 1,682 | 2,740 | 830 | 554 | -1,459 | -1,709 |
| Tax % | 30% | 20% | 22% | 2% | 17% | 3% | 31% | 16% | 11% | 46% | 30% | 18% | — |
| Net Profit | 802 | 1,006 | 1,234 | 2,702 | 1,387 | 7,228 | 436 | 1,405 | 2,434 | 435 | 387 | -1,715 | -1,971 |
| EPS in Rs | 23.41 | 30.24 | 38.98 | 95.49 | 45.37 | 275 | 10.06 | 49.36 | 90.93 | 10.52 | 9.22 | -74.41 | -84.97 |
| Div. Payout % | 53% | 33% | 28% | 23% | 28% | 4% | 99% | 25% | 19% | 143% | 119% | -15% | — |
Balance Sheet
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 255 | 255 | 255 | 255 | 255 | 255 | 255 | 255 | 255 | 255 | 255 | 255 |
| Reserves | 5,297 | 6,600 | 7,653 | 10,847 | 12,086 | 12,643 | 14,035 | 17,998 | 19,466 | 21,986 | 21,339 | 20,951 |
| Borrowings | 8,379 | 9,090 | 7,072 | 6,108 | 6,130 | 7,702 | 6,933 | 7,025 | 6,296 | 5,563 | 7,072 | 8,001 |
| Other Liabilities | 6,872 | 8,402 | 8,607 | 8,648 | 8,398 | 7,073 | 7,115 | 8,566 | 8,923 | 8,907 | 9,084 | 9,791 |
| Total Liabilities | 20,802 | 24,346 | 23,587 | 25,858 | 26,869 | 27,673 | 28,337 | 33,843 | 34,940 | 36,711 | 37,750 | 38,998 |
| Fixed Assets | 11,359 | 13,431 | 12,644 | 12,787 | 13,551 | 15,356 | 15,261 | 16,044 | 17,092 | 17,861 | 19,600 | 20,602 |
| CWIP | 189 | 350 | 333 | 409 | 774 | 835 | 1,094 | 1,667 | 2,410 | 2,217 | 1,913 | 1,038 |
| Investments | 443 | 2,188 | 2,787 | 2,840 | 5,615 | 4,285 | 5,816 | 7,683 | 7,448 | 9,739 | 9,144 | 9,886 |
| Other Assets | 8,811 | 8,377 | 7,822 | 9,822 | 6,929 | 7,198 | 6,167 | 8,449 | 7,990 | 6,894 | 7,093 | 7,472 |
| Total Assets | 20,802 | 24,346 | 23,587 | 25,858 | 26,869 | 27,673 | 28,337 | 33,843 | 34,940 | 36,711 | 37,750 | 38,998 |
Cash Flow
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 1,274 | 2,332 | 3,531 | 1,870 | 1,581 | 1,780 | 2,037 | 1,644 | 2,971 | 3,016 | 1,761 | 1,269 |
| Investing | -663 | -463 | -985 | 2,714 | -1,927 | -2,285 | -1,147 | -817 | -1,149 | -605 | -1,667 | -766 |
| Financing | -1,087 | -1,802 | -2,341 | -2,089 | -1,712 | -129 | -1,456 | -755 | -2,076 | -2,494 | 29 | -670 |
| Net Cash Flow | -477 | 68 | 205 | 2,494 | -2,058 | -634 | -565 | 72 | -254 | -83 | 123 | -167 |
| Free Cash Flow | 709 | 1,645 | 2,888 | 1,140 | 502 | 611 | 804 | 379 | 1,427 | 1,193 | -191 | 129 |
| CFO/OP | 86 | 129 | 190 | 71 | 115 | 99 | 142 | 82 | 88 | 120 | 102 | 67 |
Ratios
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 73 | 88 | 74 | 46 | 51 | 56 | 50 | 56 | 57 | 45 | 47 | 52 |
| Inventory Days | 137 | 119 | 244 | 304 | 315 | 347 | 257 | 317 | 282 | 341 | 324 | 353 |
| Days Payable | 138 | 99 | 232 | 307 | 269 | 302 | 256 | 338 | 289 | 320 | 318 | 293 |
| Cash Conversion Cycle | 72 | 107 | 86 | 43 | 97 | 100 | 51 | 35 | 50 | 66 | 53 | 113 |
| Working Capital Days | -4 | 31 | -4 | 27 | -2 | -102 | -28 | -29 | 29 | -22 | -21 | -17 |
| ROCE % | 11% | 11% | 10% | 16% | 9% | 36% | 4% | 8% | 12% | 8% | 4% | 3% |
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
Log in to view Tata Chemicals insights
64 extracted metrics + investor summaries across FY11–FY27.
Documents
Frequently Asked Questions about Tata Chemicals
What does Tata Chemicals Ltd do?
Where is Tata Chemicals Ltd (TATACHEM) listed?
Which sector does Tata Chemicals Ltd belong to?
What is the market capitalisation of Tata Chemicals Ltd?
What is the PE ratio of Tata Chemicals Ltd?
What is the 52-week high and low of Tata Chemicals Ltd?
Does Tata Chemicals Ltd pay dividends?
What is the Return on Equity (ROE) of Tata Chemicals Ltd?
Company Information
Incorporated in 1939, Tata Chemicals Ltd manufactures and exports basic chemistry and specialty products [1]
For AI agents and developers
Reading this as an AI agent, LLM or automated pipeline? Every page on Tapetide is also published as clean Markdown — no navigation, no scripts, just the data. Fetch https://tapetide.com/stocks/TATACHEM.md for Tata Chemicals Ltd: company profile, latest price, key fundamentals, the Tapetide Score, growth rates, quarterly and annual financial statements, shareholding pattern, technical indicators, analyst ratings and exchange filings.
Append .md to any Tapetide URL for the
same treatment. A full index of what we publish is at /llms.txt and /llms-full.txt. For live,
structured queries instead of documents, use our MCP server.