Shares of Tata Chemicals Ltd are trading flat after touching a day’s high of Rs 823.35 on 24th November. This occurs even as the company announced on Friday (21st November) that it has approved investments to expand manufacturing capacities at two key plants.

At its Mithapur facility, the company will invest Rs 135 crore to increase dense soda ash production by 350 kilo tonnes per annum (ktpa) over the next 24 months. The existing capacity at Mithapur is 1,091 ktpa, with 90% utilisation.

At its Cuddalore plant in Tamil Nadu, Tata Chemicals will invest Rs 775 crore. This investment aims to expand precipitated silica capacity by 50 ktpa over 27 months. The plant currently has a silica capacity of 13.8 ktpa and is operating at 86% utilisation.

Both projects will be funded through a mix of options, including internal accruals. The company said the soda ash expansion will help meet rising demand from sustainability-led applications. In contrast, the silica expansion is driven by the growing demand from the rubber and automotive tyre industries.

Tata Chemicals reported a 60% year-over-year drop in consolidated net profit to Rs 77 crore for Q2FY26. This is in comparison with Rs 194 crore a year earlier.

Revenue slipped 3.1% to Rs 3,877 crore from Rs 3,999 crore last year. This decrease is due to reconfiguration in the UK and weak market conditions. EBITDA came in at Rs 537 crore, down 13% from Rs 620 crore in Q2FY25. This reduction occurred mainly because of lower volumes and lower realisations, partly offset by better cost control.

Margins narrowed to 13.8% from 15.5% a year earlier. As of 30th September, 2025, the company’s net debt stood at Rs 5,583 crore, excluding lease liabilities of Rs 776 crore.

At 11:28 AM, shares of Tata Chemicals were trading 0.27% lower at Rs 807.85 on NSE.

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