Tata Chemicals Q3 loss widens to Rs 93 crore as margins shrink on rising costs

Tata Chemicals Q3FY26 Results: Tata Chemicals Ltd reported another soft quarter, with losses widening in the December period as operating performance weakened and costs stayed elevated, even as revenues held largely steady.

The Tata Group company posted a consolidated net loss of Rs 93 crore in the third quarter, deeper than the Rs 53 crore loss reported in the same period last year. Revenue edged down 1.1 per cent year-on-year to Rs 3,550 crore, reflecting a challenging demand environment across key markets.

What weighed more heavily on the numbers, however, was the sharp deterioration in operating profitability. EBITDA fell 20.5 per cent to Rs 345 crore, compared with Rs 434 crore a year ago, dragging margins down to 9.72 per cent from 12.09 per cent. The quarter also absorbed a one-time labour code impact of Rs 54 crore, adding further strain to the bottom line.

The latest results is reflective of the difficulty that Tata Chemicals is still facing with respect to rising costs and weaker operating leverage offsetting relatively stable topline performance.

The subdued Q3 results follow a difficult second quarter of FY26, when Tata Chemicals had reflected pressure in its consolidated performance. For the quarter ended September 2025, The company reported nearly 60 per cent year-on-year drop in net profit to Rs 77 crore, as revenue went down by 3.1 per cent to Rs 3,877 crore. That quarter was impacted by the reconfiguration of UK operations, along with muted market conditions.

EBITDA in Q2 fell 13 per cent to Rs 537 crore, as lower volumes and softer realisations took a toll, though some of the impact was cushioned by cost-control efforts. Margins narrowed to 13.8 per cent from 15.5 per cent a year earlier.

There were pockets of resilience on a standalone basis in the second quarter, where revenue rose 19 per cent to Rs 1,204 crore, supported by better volumes. Standalone EBITDA jumped 67 per cent to Rs 240 crore, while profit from continuing operations climbed 80 per cent to Rs 178 crore, highlighting divergence between the India business and overseas operations.

For the first half of FY26, consolidated revenue stood at Rs 7,596 crore, down 2 per cent year-on-year, while EBITDA came in at Rs 1,186 crore, broadly flat compared with the year-ago period.

Shares of Tata Chemicals ended lower on Monday, with the stock closing at Rs 727 on the NSE, down Rs 15.90 or 2.14 per cent, as investors remained cautious amid sustained margin pressure and limited near-term visibility on earnings recovery.