Tata Chemicals Limited has released the transcript of its Analysts/Investors Call concerning the Unaudited Consolidated and Audited Standalone Financial Results for the third quarter and nine months ended December 31, 2025. The call, held on February 2, 2026, featured insights from Managing Director and CEO, R. Mukundan, and CFO, Nandakumar Tirumalai. Mr. Mukundan discussed the tepid demand for soda ash globally, constrained by weak macroeconomic conditions and export restrictions affecting key markets. While medium-term demand is expected to grow modestly, driven by solar glass and stable consumption, new global capacity additions are likely to pressure pricing and margins in the near term. India shows robust demand, while China and the U.S. are experiencing flat to declining demand. Geopolitical risks and tariff uncertainties persist, clouding global demand visibility. The outlook remains positive long-term, supported by sustainability-linked applications like solar PV and EV growth. Operationally, despite market headwinds, the company's standalone performance was supported by higher volumes and cost management. UK operations are being reconfigured to focus on value-added products. Standalone revenue was ₹1,204 crore, up 3% year-on-year, with EBITDA at ₹228 crore, up 9%. However, consolidated revenue was down 1% to ₹3,550 crore, and consolidated EBITDA fell to ₹345 crore from ₹434 crore, primarily due to subdued pricing in the U.S. Key developments include the acquisition of Novabay Singapore to strengthen the bi-carb market position in Asia and board approval for a greenfield iodized salt facility in Tamil Nadu with a capacity of 210 kilo tonne per annum, requiring an investment of ₹515 crore, expected to be commissioned over 36 months. Additionally, a 50 kilo tonne per annum precipitated silica expansion at Cuddalore (₹775 crore investment) and a 350-kilo tonne dense ash plant in Mithapur (₹135 crore investment) were approved. During the Q&A, management addressed concerns about U.S. domestic soda ash prices, which saw a $5 drop in realizations. Cost structures, particularly for gas and coal, have increased significantly since pre-COVID times. The company is strategically reducing volumes in unprofitable export markets, particularly in Southeast Asia, to focus on markets offering better returns. Future CAPEX is primarily focused on India, targeting non-cyclical and high-return products with low capital expenditure.
