Tata Chemicals Q4 results: Net loss narrows to Rs 56 crore YoY; board declares Rs 11 dividend, okays fund raise plan

Tata Chemicals on Wednesday, May 7, reported a consolidated net loss of Rs 56 crore for the quarter ended March 31, 2025, a sharp improvement compared to the Rs 841 crore loss it posted in the same period last year. The significant reduction in losses comes as the company recorded stable topline growth, even as operating margins came under pressure.

Consolidated revenue from operations stood at Rs 3,509 crore for the January-March quarter, up 1.0 per cent year-on-year from Rs 3,475 crore. The company’s earnings before interest, taxes, depreciation and amortisation (EBITDA) declined 26 per cent YoY to Rs 327 crore from Rs 443 crore, while EBITDA margin compressed to 9.3 per cent from 12.7 per cent in the year-ago period.

Dividend announced; record date yet to be disclosed

Alongside its quarterly performance, the Tata Group company also announced a dividend of Rs 11 per equity share for FY25. However, the record date to determine eligible shareholders for the dividend has not yet been disclosed.

Q4 forecast vs actual 

Zee Business research had earlier projected that Tata Chemicals would swing to a profit of Rs 117 crore for Q4 FY25. Analysts also expected revenue to rise by 4.0 per cent to Rs 3,614 crore and EBITDA to grow 5.6 per cent to Rs 468 crore, with margin expansion to 12.9 per cent.

However, the reported numbers missed all key estimates. The actual EBITDA was significantly lower than forecast, and margins narrowed instead of expanding. The miss was likely due to continued softness in soda ash realisations and input cost pressures.

Market reaction: Stock under pressure, trades 21 per cent lower YoY

On the results day, Tata Chemicals shares closed 3.1 per cent lower at Rs 819.4 apiece on the BSE. The stock has fallen nearly 21 per cent over the past year, underperforming the broader Nifty50 index, which has gained around 8.7 per cent in the same period.

Outlook: Pricing pressure, global volumes key to watch

While the narrowing of losses is a positive takeaway, the operational performance signals challenges in margin stability and volume growth. Investors will closely monitor management commentary on soda ash pricing trends, North American performance, and the outlook on global demand for both basic and specialty chemicals.

The company had faced an exceptional loss of Rs 963 crore in Q4 FY24, which had led to the steep net loss last year. With no such exceptional items this time, Tata Chemicals has managed to show a cleaner bottomline, though weaker-than-expected operating performance remains a concern.