Tata Chemicals (TTCH IN): Hold: 1QFY27 results disappoint on overseas businesses

研报英文原文证据摘录

Tata Chemicals (TTCH IN): Hold: 1QFY27 results disappoint on overseas businesses

28 July 2026

Equities

Chemicals Tata Chemicals (TTCH IN)

Hold: 1QFY27 results disappoint on overseas businesses India

◆ Outside-India businesses disappointment attributed to higher

costs and lower soda ash realisations in SE Asia MAINTAIN HOLD

◆ Soda ash capacity closures needed to trigger improvement in TARGET PRICE (INR) PREVIOUS TARGET (INR)

profitability; pilot testing of sodium ion batteries underway 720.00 760.00

◆ Maintain Hold; lower TP to INR720 (from INR760) as we cut

SHARE PRICE (INR) UPSIDE/DOWNSIDE

earnings estimates

698.90 +3.0%

Earnings a miss as overseas businesses disappoint. Tata Chemicals (TTCH) (as of 27 Jul 2026)

reported net losses in 1QFY27 as margins remained under pressure outside India given MARKET DATA

higher costs and lower realisations in SE Asia. Revenues increased 14% y-o-y, but Market cap (INRm) 178,049 Free float 62%

Market cap (USDm) 1,856 BBG TTCH IN

higher costs led to a 14% decline in reported EBITDA (-21% y-o-y adj. for an 3m ADTV (USDm) 13 RIC TTCH.BO

INR430m reversal of provisions). Net losses reported at INR170m. The US continued

FINANCIALS AND RATIOS (INR)to struggle with just about positive EBITDA, given lower SE Asia realisations and higher Year to 03/2026a 03/2027e 03/2028e 03/2029e

logistics costs. UK continued losses owing to higher gas costs and one-offs, part of which HSBC EPS 2.36 15.06 21.27 25.96

HSBC EPS (prev) 2.36 22.24 27.61 32.04

can reverse in 2Q. Africa was barely EBITDA positive due to higher Fuel Oil (FO) costs. Change (%) 0.0 -32.3 -23.0 -19.0

India positively surprised with strong margins, leading to a 35% y-o-y EBITDA growth Consensus EPS 14.46 19.72 29.52 36.32

PE (x) 296.7 46.4 32.9 26.9