Tata Chemicals Q2 Results Review - Sequential Recovery Improves H2 Prospects: Motilal Oswal

Motilal Oswal Report

Tata Chemicals Ltd.’s Q2 FY25 consolidated Ebitda declined 25% YoY, due to lower realizations YoY, higher freight costs and unfavorable operating leverage across geographies, while sequentially it improved by 7.7% on recovery across geographies, except India.

As per the management, soda ash prices have bottomed out (also last price cut was in November 2023 for domestic market by Tata Chemicals) and can improve going ahead, with stable demand-supply scenario globally.

We maintain our FY25/FY26 Ebitda estimates as we anticipate a steady recovery in the soda ash demand-supply scenario globally. Reiterate our Neutral rating with an SoTP-based target price of Rs 1,070.

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