Tata Chemicals Q1 FY27 Results (NSE: TATACHEM)
Signal: Slipped to loss
The read
Revenue grew 14.4% YoY, but operating margin contracted 477bps to 5.15% as freight and power costs surged. The Industrial Essentials segment swung to a loss, leading to an attributable net loss of ₹17 Cr. The Farm Essentials segment showed sharp sequential recovery due to seasonal factors, but the core soda ash business remains under pressure.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹4,255 Cr | 14.41% | 23.76% |
| EBIT | ₹219 Cr | -40.65% | |
| Net profit | ₹60 Cr | -81.01% | |
| EPS | ₹-0.67 | -106.77% | |
| EBIT margin | 5.15% |
P&L walk
Revenue grew 14.4% YoY driven by Living Essentials (+25.2%) and Farm Essentials (+6.8%), but Industrial Essentials revenue rose only 12.7% and reported a segment loss of ₹70 Cr. Operating margin contracted 477bps YoY to 5.15% as input costs (freight + power + raw materials) grew faster than revenue. Total net profit fell 81% to ₹60 Cr, and attributable profit turned to a loss of ₹17 Cr due to the Industrial Essentials loss and a share of JV loss of ₹17 Cr.
Segments
Industrial Essentials segment (soda ash, silica) reported a loss of ₹70 Cr (vs profit of ₹131 Cr a year ago), dragging the consolidated result; Living Essentials and Farm Essentials posted improved profits of ₹188 Cr and ₹156 Cr respectively, partially offsetting the weakness.
Key positives
- Revenue growth of 14.4% YoY to ₹4,255 Cr, driven by Living Essentials (+25.2%) and Farm Essentials (+6.8%).
- Living Essentials segment profit rose to ₹188 Cr (from ₹204 Cr a year ago), maintaining strong margins.
- Farm Essentials segment turned profitable at ₹156 Cr vs loss of ₹28 Cr in Q4FY26, driven by seasonal agri-input demand.
- Debt equity ratio improved to 0.35 from 0.36 QoQ, and interest coverage ratio at 3.75x remains adequate.
Key concerns
- Industrial Essentials segment posted a loss of ₹70 Cr (vs profit of ₹131 Cr YoY), reflecting weak soda ash spreads and higher costs.
- Operating margin compressed 477bps YoY to 5.15% due to freight (+38.4% YoY) and power & fuel (+18.1% YoY) outpacing revenue growth.
- Attributable net profit turned to a loss of ₹17 Cr (vs profit of ₹252 Cr YoY) due to Industrial segment loss and JV losses.
- Share of loss from joint ventures and associates was ₹17 Cr vs profit of ₹42 Cr a year ago.
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