Tata Chemicals Limited (TATACHEM) AI Stock Analysis

• Market Cap: ₹167.16B
• Dividend Yield: 1.42%
• Average Volume (3M): 47.23K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.99
• Revenue Growth: -1.99%
• EPS Growth: N/A
• Country: IN
• Employees: 4,644
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): -3.70
• Shares Outstanding: 254,756,270
• 10 Day Avg. Volume: 35,220
• 30 Day Avg. Volume: 47,231
• PEG Ratio: -3.21
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 1.44
• P/FCF Ratio: -87.68
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 16.66
• Revenue Forecast (FY): ₹147.56B

• Rating: 54 Neutral
• Price Target: ₹669.00 ▼(-10.36% Downside)
• Action: Reiterated Date: 11/15/25
• Date: Action: Reiterated 11/15/25

Tata Chemicals' overall stock score is primarily influenced by its mixed financial performance and bearish technical indicators. The strong balance sheet is offset by declining profitability and cash flow challenges. Technical analysis indicates a bearish trend, with the stock trading below key moving averages and oversold conditions. The high P/E ratio suggests overvaluation, contributing to a cautious outlook.

Positive Factors

Strong balance sheet and controlled leverage

A healthy equity ratio and stable debt-to-equity provide durable financial flexibility. This reduces refinancing and solvency risk during cyclical downturns, supports working-capital needs, and enables funding of strategic capex or M&A without forcing distress financing, preserving long-term resilience.

High gross profit margins from core operations

Sustained strong gross margins signal efficient manufacturing and input-cost management in commodity operations. That margin cushion helps absorb commodity price swings and funds investment in higher-value specialty lines, supporting margin stability and long-term operating cash generation capacity.

Diversified business model across commodity and specialty segments

A portfolio spanning large-scale soda ash plus specialty chemicals and consumer nutrition reduces reliance on any single end-market. Scale in volume chemicals provides steady cashflow while specialty/consumer segments offer higher-margin upside, improving revenue mix resilience over multi-quarter cycles.

Negative Factors

Negative free cash flow driven by high capex

Persistent negative free cash flow from elevated capex can erode liquidity and force external financing or use of reserves. Over months, this constrains capacity to pay dividends, reduce leverage, or fund discretionary investments, raising execution and refinancing risk if cash generation doesn't recover.

Declining net profit and margin compression

Eroding net and EBITDA margins suggest rising operating costs, lower pricing power, or mix shifts toward lower-margin products. If structural, this reduces retained earnings and ROE, weakens reinvestment capacity, and can undermine returns despite healthy gross margins.

Inconsistent revenue growth with recent downturn

Slowing or volatile top-line across industrial end-markets limits scale benefits and makes margin recovery harder. A sustained revenue decline can impair fixed-cost absorption in large plants, prolong payback on capex, and signal weaker structural demand in core soda-ash and downstream markets.

Tata Chemicals Limited Business Overview & Revenue Model

Company Description

Tata Chemicals Limited manufactures, sells, and distributes basic chemistry and specialty products in India, Europe, Africa, the United States, rest of Asia, and internationally. It offers dense and light soda ash; crushed refined soda; Portland and masonry cement under the Tata Shudh brand name; salt; pharmaceutical grade, food grade, and animal feed grade sodium bicarbonate, as well as technical and refined grade sodium bicarbonate; and allied chemicals, such as caustic soda, bromine-based products, and gypsum, as well as marine chemicals and nutrition solutions. In addition, it offers specialty products, including nano zinc oxides for various industrial and cosmetic applications; and silica. Further, the company provides fungicides, insecticides, pesticides, herbicides, plant growth nutrients, crop protection solutions, and seeds, as well as agri-input solutions; and runs farmer connect initiative under the Rallis Kisan Kutumb name. Its products are used in various industrial applications, such as agriculture; animal nutrition; chemicals; construction; food and nutrition; glass; high performance rubber; metals; oral care and cosmetics; paints, inks, and adhesives; pharmaceuticals; safety and environmen; soaps and detergents; textiles and leather; lithium-ion, dry cell, and other batteries; and others. Tata Chemicals Limited was founded in 1927 and is based in Mumbai, India.

How the Company Makes Money

Tata Chemicals primarily makes money by producing and selling bulk inorganic chemicals at scale, supplemented by higher-value specialty and consumer/nutrition businesses. Its key revenue streams include: (1) Soda ash (sodium carbonate): sold largely to industrial customers, especially glass manufacturers and detergent/soap producers; revenue is driven by sales volumes and prevailing soda ash prices, which can fluctuate with global supply-demand and energy/logistics costs. (2) Sodium bicarbonate (baking soda) and related derivatives: sold into food, pharma, flue-gas treatment, and other industrial applications, and in some markets also through consumer channels; earnings depend on application mix and value-added grades. (3) Salt and other inorganic chemicals: produced and sold as industrial inputs and for downstream chemical production, typically as a volume business with pricing linked to industrial demand and distribution reach. (4) Specialty chemicals: the company generates revenue from differentiated chemical products (where available in its portfolio) that generally offer better margins than commodity chemicals; earnings depend on product mix, customer contracts, and technical/quality differentiation. (5) Consumer/nutrition products (where operated): revenues come from branded retail sales and institutional channels, with performance linked to brand strength, distribution, and product category growth. Across these streams, profitability is influenced by manufacturing efficiency, energy and raw-material costs, logistics, plant utilization, and geographic/industry diversification. Specific, current major customer contracts, partnership terms, or segment-wise revenue splits are null.

Tata Chemicals Limited Financial Statement Overview

Summary

Tata Chemicals exhibits a mixed financial performance. The income statement shows strong gross profit margins but declining net profit margins and inconsistent revenue growth. The balance sheet is solid with a stable debt-to-equity ratio, but there is a slight decline in stockholders' equity. Cash flow analysis reveals challenges with negative free cash flow due to high capital expenditures, indicating liquidity strain.

Income Statement

Tata Chemicals exhibited moderate income statement performance. The gross profit margins have been strong, indicating efficient cost management, but there's been a noticeable decline in net profit margin in the most recent year due to decreased net income. Revenue growth has been inconsistent, with a recent downturn, reflecting potential demand volatility or pricing pressures in the chemicals market. The EBIT and EBITDA margins also show a downward trend, suggesting challenges in operational efficiency.

Balance Sheet

The balance sheet remains solid with a healthy equity ratio, indicating a strong asset base relative to liabilities. The debt-to-equity ratio is stable, reflecting controlled leverage and financial stability. However, there is a slight decline in stockholders' equity, which could be a point of concern if it continues. Return on equity has been relatively low, pointing to limited profitability relative to shareholders' investments.

Cash Flow

Cash flow analysis highlights some challenges. The free cash flow has turned negative recently, primarily due to significant capital expenditures, indicating potential future growth investments but also liquidity strain. Operating cash flow has been positive, yet the operating cash flow to net income ratio has decreased, suggesting less cash generation relative to profit. Free cash flow to net income ratio is negative, highlighting current cash flow issues.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	146.95B	148.87B	154.21B	167.89B	126.22B	102.00B
Gross Profit	87.94B	89.42B	93.15B	99.25B	74.25B	73.82B
EBITDA	19.34B	18.41B	28.11B	39.05B	23.50B	14.66B
Net Income	2.20B	2.35B	2.68B	23.17B	12.58B	2.56B
Balance Sheet
Total Assets	388.55B	377.80B	367.56B	350.84B	338.43B	283.37B
Cash, Cash Equivalents and Short-Term Investments	11.36B	14.01B	12.57B	19.34B	26.16B	29.61B
Total Debt	74.95B	70.72B	55.63B	62.96B	70.25B	69.33B
Total Liabilities	155.24B	152.79B	136.42B	144.42B	146.86B	131.95B
Stockholders Equity	223.58B	215.94B	222.41B	197.21B	182.53B	142.90B
Cash Flow
Free Cash Flow	-640.00M	-2.44B	11.82B	13.93B	3.68B	7.95B
Operating Cash Flow	5.36B	17.61B	30.16B	29.71B	16.44B	20.37B
Investing Cash Flow	-1.77B	-16.81B	-6.10B	-11.86B	-8.36B	-11.30B
Financing Cash Flow	-5.55B	290.00M	-24.94B	-20.76B	-7.55B	-14.56B

Tata Chemicals Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 746.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TATACHEM, the sentiment is Negative. The current price of 746.35 is above the 20-day moving average (MA) of 698.20, above the 50-day MA of 717.61, and below the 200-day MA of 851.27, indicating a bearish trend. The MACD of -14.06 indicates Positive momentum. The RSI at 27.08 is Positive, neither overbought nor oversold. The STOCH value of 7.87 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:TATACHEM.

Tata Chemicals Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CARBORUNIV	65 Neutral	₹143.41B	53.68	―	0.47%	4.51%	-57.87%
DEEPAKFERT	64 Neutral	₹114.90B	28.71	―	0.80%	21.68%	45.18%
NAVINFLUOR	64 Neutral	₹322.66B	40.91	―	0.23%	30.05%	70.18%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SUMICHEM	61 Neutral	₹192.35B	77.71	―	0.26%	8.69%	12.26%
BASF	59 Neutral	₹147.45B	40.15	―	0.51%	0.43%	-42.29%
TATACHEM	54 Neutral	₹167.16B	-52.43	―	1.42%	-1.99%	―

Tata Chemicals Limited Corporate Events

Tata Chemicals Schedules Analyst and Institutional Investor Meetings in Mumbai

Tata Chemicals Limited has notified the stock exchanges of its scheduled one-on-one meetings with analysts and institutional investors on March 13, 2026, in Mumbai. The company will meet representatives from Motilal Oswal Financial Services Ltd and Nuvama Institutional Equities, while emphasizing that no unpublished price-sensitive information will be shared during these interactions.

The announcement underscores Tata Chemicals’ ongoing efforts to maintain transparent communication with the investment community in line with SEBI disclosure norms. By formally disclosing these engagements and highlighting that the schedule may change based on exigencies, the company reinforces its compliance-focused approach and commitment to fair disclosure for all stakeholders.

Tata Chemicals Posts Mixed Q3 but Maintains Strong Nine-Month Performance

Tata Chemicals has published its unaudited consolidated and audited standalone financial results for the third quarter and nine months ended 31 December 2025, as approved by its board on 2 February 2026 and released via newspaper advertisements and its website in line with regulatory disclosure requirements. The consolidated results show quarterly revenue from continuing operations of ₹3,550 crore with a net loss of ₹69 crore for the quarter but a profit of ₹401 crore for the nine-month period, while standalone operations delivered quarterly revenue of ₹1,204 crore and a quarterly profit of ₹73 crore, contributing to a nine‑month profit of ₹558 crore and sustaining a solid net worth position and moderate leverage; the disclosures provide investors and other stakeholders with an updated view of the company’s financial health and capital structure amid a period of mixed quarterly profitability but resilient year‑to‑date performance.

Tata Chemicals Posts Q3 and Nine-Month FY26 Results, Releases Investor Call Audio

Tata Chemicals Limited has notified the stock exchanges that the audio recording of its analysts and investors call discussing the company’s unaudited consolidated and audited standalone financial results for the third quarter and nine months ended December 31, 2025, is now available on its website. The results were approved by the Board of Directors on February 2, 2026, and the release of the call recording enhances transparency and access to financial disclosures for investors and market participants, supporting informed decision-making among stakeholders.