1. Business Environment a. Global Economic Outlook
The global economy in FY2026 demonstrated resilience despite persistent geopolitical, trade and energy-related uncertainties. Global GDP growth stabilised at modest but uneven levels across regions, supported by disinflation, a gradual shift toward monetary easing in select economies and continued investments in technology and infrastructure. However, medium-term growth prospects remained constrained by structural challenges, including slowing productivity, elevated public debt and increasing geoeconomic fragmentation.
Global trade moderated during the year following an inventory-led recovery. The trading environment was shaped by tariff measures, industrial policies, selective trade restrictions and disruptions to key shipping routes, leading to a heightened focus on supply chain localisation and resilience.
Inflation eased across most major economies, supported by softer commodity prices, improved supply chains and the lagged effects of tighter monetary policy, although services inflation remained sticky in several regions.
Energy prices remained volatile during FY2026, particularly crude oil and natural gas, with periodic fluctuations driven by geopolitical tensions in key producing and transit regions. While medium-term supply expectations improved, near-term volatility continued to impact cost structures across energy-intensive industries, including chemicals.
Overall, the macroeconomic environment in FY2026 was characterised by stable but modest growth, easing inflation and gradually improving financial conditions in the latter part of the year, offset by elevated geopolitical and policy risks.
Sources:
International Monetary, January 2026 Updates and April 2026
International Energy Agency (IEA), Oil Market Report, December 2025
b. India Economic Outlook
The Indian economy is estimated to have grown at around 7.4-7.6% in FY2026, reaffirming its position as the fastest-growing major global economy. Growth was driven by strong domestic demand, sustained government capital expenditure and resilient performance across manufacturing and services sectors, particularly infrastructure, construction, financial services and technology-enabled services.
Inflation moderated during FY2026, with headline CPI inflation averaging around 4.0–4.5%, supported by easing food prices, improved supply-side management and relatively stable core inflation.
Indias external trade remained resilient in FY2026 despite a challenging global environment characterised by muted goods demand, trade fragmentation and geopolitical disruptions. Total exports (merchandise and services combined) are estimated at approximately USD 840–860 billion, supported primarily by strong growth in services exports, while merchandise exports remained under pressure due to weak global demand.
Merchandise exports in FY2026 stood at around USD 430–440 billion, reflecting only marginal growth over the previous year amid subdued global demand. Lower demand from key markets, pricing pressures in select commodities and chemicals and a slowdown in global manufacturing weighed on export momentum.
MerchandiseimportsrosetoapproximatelyUSD740–770billion, driven by higher energy imports, strong domestic investment demand for capital goods and elevated precious metal prices, partly offset by moderation in non-essential imports.
Services exports continued to be a key growth engine, reaching approximately USD 410–420 billion and registering high-single-digit growth. This was supported by robust demand for IT, business and professional services, financial services and the continued expansion of global capability centres. Services imports increased modestly to around USD 200–205 billion, resulting in a sizeable services trade surplus of approximately USD 210–215 billion, which significantly cushioned the overall trade balance.
Consequently, Indias overall trade deficit widened in FY2026 due to elevated merchandise imports; however, the strong services surplus continued to play a stabilising role. The merchandise trade deficit is estimated at approximately USD 310–330 billion, while the large net services surplus helped keep the current account deficit within manageable levels, reinforcing external sector resilience.
Government capital expenditure remained a key growth catalyst, with Central Government capex sustained at around 3.1% of GDP, reflecting a continued focus on infrastructure-led development. The Union Budget reiterated its long-term commitment through elevated allocations toward transportation, energy transition, manufacturing ecosystems and logistics, alongside continued policy support for chemicals, fertilisers and domestic manufacturing.
Sources: Economic Survey 2025–26, RBI, Union Budget, Press Information Bureau (PIB), India Brand Equity Foundation (IBEF), Monetary Policy Statements and Growth Projections FY26
2. Chemical Industry
a. Global Chemical Industry
Global chemical production (excluding pharmaceuticals) grew by approximately 2.2–2.5% in FY2026, indicating a gradual but incomplete recovery from recent cyclical lows. Overall output remained below long-term historical growth trends, reflecting structural headwinds in mature markets. The improvement was supported by easing destocking pressures, stabilisation in energy prices and a modest recovery in downstream demand. However, growth remained uneven across regions, shaped by divergent industrial activity, energy cost dynamics and evolving trade realignments.
In advanced economies, chemical production showed mixed signs of stabilisation in FY2026, ranging from flat to modest contraction following sharp declines in the previous year. While industrial activity stabilised, growth remained constrained by structurally higher energy costs, relatively tight financial conditions and weak construction demand. Recovery was primarily led by consumer-oriented segments and selective manufacturing value chains, with overall utilisation rates remaining below pre-pandemic levels.
Across emerging markets, chemical production growth moderated to approximately 3.7–4.0% in FY2026, compared to stronger growth in the previous year. Despite slower momentum, emerging markets continued to be the primary drivers of global chemical demand, supported by domestic consumption, infrastructure investment and manufacturing expansion.
In China, the worlds largest chemical producer, growth eased to around 4% in FY2026. The moderation reflected structural overcapacity, continued weakness in construction and real estate-linked demand and softer export momentum. Growth was supported by demand from consumer goods, electronics and energy transition-related segments, while pricing pressures persisted due to excess capacity.
Other emerging Asian markets experienced a gradual recovery, with chemical production growing by around 3.0–3.5% in FY2026. India emerged as a key contributor, with production expanding by approximately 4.5%, supported by strong domestic demand, infrastructure spending, growth in specialty chemicals and favourable policy support. Supply chain diversification trends continued to benefit Indian chemical producers.
In the United States, chemical demand remained subdued in FY2026, with production declining by approximately 1%, following a weak previous year characterised by destocking and subdued industrial activity. Persistently low utilisation rates, weak demand from construction and automotive sectors and structural overcapacity constrained recovery.
In the European Union, chemical production declined marginally by around 0.5–1.0% in FY2026, reflecting persistent cost competitiveness challenges and subdued industrial demand, with recovery remaining slow and uneven across end-use segments.
In South America, chemical production expanded by approximately 2.0–2.5% in FY2026, supported by recovery in consumer demand, increased automotive production and sustained demand for agricultural chemicals, particularly fertilisers and crop inputs.
Japan recorded a marginal recovery of around 0.5% in FY2026 following multiple years of decline. While demand from technology and consumer segments stabilised, continued weakness in automotive production limited the pace of recovery.
The global agrochemicals market, which experienced a sharp downturn in earlier years due to channel destocking, price corrections and volatile weather conditions, showed early signs of stabilisation during FY2026. While volumes remained below peak levels, inventory normalisation and improving farm economics supported a gradual recovery. Export pressures persisted, though the pace of decline moderated, indicating improving underlying demand conditions.
Sources: Outlook for the Chemical Industry 2025-26 and Fundamentals of the Group – Economic Environment: BASF Integrated & Combined Management Reports, McKinsey & Company - Global Chemicals Industry Insights, India Brand Equity Foundation (IBEF), Deloitte Insights -Chemical Industry Outlook
b. Key Global Trends
In FY2026, global chemical manufacturing continues to operate in a structurally realigned landscape shaped by energy transition, regionalisation of supply chains, portfolio mix shifts and accelerated digital adoption. While global chemical output growth remains moderate, manufacturing strategies are increasingly focused on cost competitiveness, operational resilience and value led growth rather than capacity led expansion.
Energy Transition as a Determinant of Manufacturing Competitiveness
Energy costs and carbon intensity have emerged as critical determinants of manufacturing competitiveness in the chemical industry, particularly for energy-intensive segments such as basic inorganics, chlor-alkali and fertilisers. Globally, energy costs can account for approximately 20–40% of total cash costs across several chemical processes, making access to affordable, reliable and low-carbon energy a key differentiator.
Global chemical production growth remains modest, at around 2.0–2.5% in the near term, with profitability increasingly driven by energy efficiency, feedstock advantage and cost optimisation rather than volume expansion.
Europe continues to face structurally elevated energy costs, with natural gas prices remaining significantly above pre-2020 levels, impacting asset competitiveness and capacity utilisation across energy-intensive value chains.
In contrast, the United States benefits from relatively lower natural gas prices and strong policy support under the Inflation Reduction Act, which is accelerating investments in low-carbon chemicals, clean energy-linked manufacturing and battery materials.
Asia, led by China and India, is increasingly investing in renewable-linked chemical manufacturing, integrating solar, wind and captive power solutions to structurally reduce energy intensity and improve cost competitiveness.
As a result, energy efficiency, electrification and renewable energy sourcing have transitioned from incremental improvement initiatives to core strategic imperatives, shaping long-term asset viability and global competitiveness in the chemical industry.
Regionalisation of Manufacturing and Supply Chain Reconfiguration
Chemical supply chains are undergoing structural reconfiguration amid rising geopolitical risks, shipping disruptions and evolving trade alignments. Disruptions along key chokepoints such as the Suez Canal and the Red Sea corridor—which together carry around 10–15% of global trade—as well as tensions around the Strait of Hormuz, through which nearly one-fifth of global oil supply transits, have exposed vulnerabilities in extended, centralised supply chains. This has resulted in higher freight costs and longer transit times, particularly on Asia–Europe trade lanes, with rerouting via alternative corridors adding to logistics complexity.
In response, manufacturers are increasingly adopting "local-for-local" and China+1 strategies, prioritising supply resilience, diversification and proximity to end markets over pure cost arbitrage.
Asia-Pacific continues to dominate global chemical manufacturing, accounting for over 55% of global production, led by Chinas scale and integrated value chains. At the same time, India is emerging as a key growth market, with chemical production expanding at a steady pace, supported by strong domestic demand, infrastructure investment and favourable policy support. Supply chain diversification trends are increasingly benefiting Indian producers, particularly in specialty and export-oriented segments.
As a result, manufacturing and investment decisions are becoming more region-specific, balancing cost efficiency with resilience, regulatory stability and market access. This shift is reshaping global trade flows and reinforcing the importance of regional supply ecosystems in the chemical industry.
Digitalisation and Data Driven Manufacturing Operations
Digitalisation has emerged as a core lever for enhancing productivity, safety and capital efficiency in chemical manufacturing. In FY2026, the focus has increasingly shifted from pilot initiatives toward scaled, enterprise-wide deployment of Industry 4.0 technologies.
Digital solutions are delivering measurable improvements, including 10–20% gains in operational efficiency and meaningful reductions in unplanned downtime, with higher impact observed in targeted applications. Industry surveys indicate that a majority of chemical companies expect digitalisation to have a significant impact on manufacturing operations over the coming years.
Technologies such as digital twins, advanced process control, predictive maintenance and AI-enabled quality systems are increasingly being deployed to support debottlenecking, capacity optimisation and safer operations.
As a result, digital maturity is becoming closely linked to operational reliability, safety performance and capital productivity, reinforcing its role as a critical driver of long-term competitiveness in the chemical industry.
Sources: Deloitte – 2025 Chemical Industry Outlook, S&P Global Commodity Insights – Chemical Trends H1 2025, GPCA – Impact of Red Sea Disruptions on Global Trade and Chemicals (2024), HFS Research – Chemical Industry 2025: Sustainability and Digital Disruption, EY – Why the Chemical Industry Is Prioritising Digitalisation, Indian Chemical News – Chemical Industry Outlook 2026
c. Indian Chemical Industry
India continues to strengthen its position as a key global chemicals manufacturing hub. As of FY2026, India remains among the top six producers of chemicals globally and among the top three in Asia, with the sector contributing approximately 5–6% to Indias GDP and around 9% to manufacturing gross value added. With production spanning over 80,000 chemical products, India represents one of the most diversified chemical manufacturing bases globally.
Market Size and Growth Trajectory
The Indian chemical industry is estimated to have reached approximately USD 300 - 320 billion in FY2026, supported by steady mid-single-digit growth. Growth momentum remains structurally strong, driven by sustained domestic demand across agriculture, infrastructure, FMCG, automotive and energy-transition segments, alongside rising global interest in India as a resilient and diversified sourcing destination. Specialty chemicals and export-oriented segments continue to outperform the broader industry.
Trade Position and Global Integration (Excluding Pharmaceuticals)
India continues to be deeply integrated into global chemical value chains. Excluding pharmaceuticals, the country ranks around 14th globally in chemical exports and among the top 10 chemical importers, reflecting both scale of consumption and manufacturing capability.
Chemical exports (organic and inorganic) were approximately USD 28–29 billion in CY2025, accounting for ~6–7% of Indias total merchandise exports.
Chemical imports were estimated at USD 90–95 billion, driven by dependence on select feedstocks, specialty intermediates and high end chemicals.
India witnessed a moderation in chemical trade deficit during CY2025 compared to CY2023 peaks, supported by lower imports amid global destocking, improved domestic substitution and selective capacity additions. While export growth remained subdued in certain segments due to demand softness in developed markets, medium term export competitiveness remains intact.
Foreign Direct Investment and Strategic Interest
The sector continues to attract long term foreign capital. Cumulative FDI equity inflows into the chemical industry (excluding fertilizers) reached approximately USD 23–24 billion between April 2000 and June 2025. Manufacturing led FDI strengthened in 2025, supported by policy continuity, infrastructure development and supply chain realignment trends. Strategic investment interest continues to be led by Japan, South Korea and Southeast Asia, as global players actively diversify supply chains beyond China.
Agrochemicals – Strengthening Global Leadership
India has significantly strengthened its global standing in agrochemicals. In FY2026, India remains among the top global producers and has emerged as one of the leading exporters.
Agrochemical exports reached approximately USD 3.3 billion, with key markets including the United States, Brazil and Japan. Herbicides and specialty formulations continue to drive growth.
Indias emergence as a global agrochemical manufacturing hub is supported by cost-competitive operations, technically skilled manpower, strong process chemistry capabilities and scalable manufacturing infrastructure.
Policy Environment and Government Focus
Government policy continues to play a critical enabling role. The Union Budgets for FY2025 and FY2026 have maintained a strong focus on:
Import substitution and domestic value chain development
Green and sustainable chemical manufacturing
Expansion of renewable energy and EV ecosystems
Decarbonisation and energy efficiency across industrial operations
Production-linked incentives (PLI), Petroleum, Chemicals and Petrochemical Investment Regions (PCPIRs), infrastructure investments and ongoing reforms remain aligned with strengthening Indias long-term competitiveness as a global chemical manufacturing destination.
Sources- IBEF – Chemicals & Petrochemicals Industry (2025 updates), Ministry of Commerce & Industry / DGCIS Trade Data, Press Information Bureau – India Chem & Budget Communications, ACFI–Deloitte, Invest India, Expert Market Research
3. Company Overview
Tata Chemicals Limited (‘the Company or ‘Tata Chemicals), part of the Tata Group specialises in sustainable chemistry solutions. The Company operates primarily through two divisions: Basic Chemistry, which includes alkali chemicals such as Soda Ash, Sodium Bicarbonate, Salt and other inorganic chemicals; and Specialty Products, which encompass Agrochemicals and Seeds, Silica and Prebiotics. Tata Chemicals varied product range provides essential components to numerous leading global brands across multiple industries, including glass, detergents, pharmaceuticals, food, animal feed and more. It holds notable market positions in Soda Ash and Sodium Bicarbonate, with manufacturing facilities located in India, the United States, the United Kingdom, Singapore and Kenya. The specialty products division includes Highly Dispersible Silica (HDS) and Prebiotics. HDS, developed through patented technology, is targeted primarily for tyre applications.
The Company holds a leadership position in the domestic prebiotics market and has established a robust fermentation platform, offering significant future growth prospects. Its flagship product, fructo-oligosaccharide, is a prebiotic dietary fiber that supports the growth of gut microbiome and enhances digestive and immune health.
Rallis India Limited (Rallis), a publicly listed subsidiary of the Company and leading agrisciences entity, offers a comprehensive crop care solutions portfolio, including active ingredients and formulations for crop protection, crop nutrition, seeds and biopesticides. With a strong distribution network comprising over 7,200 dealers and 95,000 retailers, Rallis reaches a vast number of Indian farmers, covering 80% of the countrys districts and exporting to more than 60 countries. As a prominent global manufacturer of active ingredients such as Acephate, Hexaconazole, Pendimethalin and Metribuzin, Rallis is poised to drive growth, through new products and broadening customer base.
The Companys operations are underpinned by the principles of safety, sustainability, operational excellence, customer focus, innovation and digitalisation. The Company is committed to reducing its carbon footprint with a focus on achieving net neutrality.
The Company supports communities with development models that are sustainable and scalable. It also promotes biodiversity in a significant way through plantation, ecosystem creation, species conservation, as well as water and resource conservation around its plants. The Company is focussed on initiatives like livelihood creation, capacity building, rural entrepreneurship development, market linkages and enriching lifestyle through quality products and services. These initiatives are woven around core intervention areas that include empowerment of rural women, youth, farmers, providing safe drinking water, animal care and clean energy.
Innovation at Tata Chemicals is focussed on delivering value to the customers by integrating chemistry with other sciences. At present, the Company has three centres for innovation located in Pune and Bengaluru.
Operational excellence is at the heart of the Companys activities and its workforce. The focus remains on reducing costs, resolving customer issues promptly and maintaining world-class manufacturing standards, fostering a culture of constant improvement.
The Company is also advancing rapidly in digital transformation. By embracing technologies such as IIoT, remote sensing and automation, it aims to enhance efficiency in manufacturing and processes.
4. Operational Performance a. Tata Chemicals Overview
Annual Performance Overview
| TCL Consolidated | FY2025-26 | FY2024-25 |
| Revenue | 14,584 | 14,887 |
| EBITDA | 1,805 | 1,953 |
| Profit before exceptional items, share of profit of joint ventures and associate and tax | 330 | 492 |
| PBT (Profit before tax) | (1,459) | 521 |
| PAT (Profit from continuing operations after tax) | (1,715) | 354 |
b. Basic Chemistry Products
Industry Structure & Developments
With operations spanning across four continents, the Company serves a diverse customer base through its Basic Chemistry Products portfolio, comprising soda ash, salt, sodium bicarbonate, cement and marine chemicals. Its robust global supply chain enables reliable product availability, efficient service delivery and competitive pricing across markets.
The Company has a soda ash capacity of 3.9 million tonnes, of which more than two-thirds is derived from natural sources. These natural soda ash reserves are in the Green River Basin, Wyoming, USA—home to the worlds largest trona deposits—and at Lake Magadi in Kenya. Natural soda ash offers inherent advantages, including lower energy consumption and a reduced environmental footprint.
In addition, the Company manufactures synthetic soda ash in India, United Kingdom and Singapore, primarily catering to domestic and export markets. The total installed capacity for sodium bicarbonate stands at 4,40,000 tonnes, with production facilities distributed across India, Singapore and UK.
I. Soda Ash
Demand for soda ash in mainland China continued to be supported by the solar glass and lithium carbonate sectors, although overall growth has now begun to slow, increasing by only around 1.2% in CY2025. Outside China, demand expanded only marginally, contributing to a mixed global market outlook. At the same time, substantial new capacity additions during the year significantly increased global availability, resulting in well-supplied markets and elevated inventory levels, particularly in China. As a result, despite pockets of sectoral demand strength, the broader global soda ash market in FY2026 reflects moderating growth momentum and sustained supply pressure.
Indias soda ash demand remained resilient during FY2026, supported by the countrys steady economic growth and the expansion of key consuming sectors. Demand was particularly strong in applications linked to detergents, glass, solar glass, oil drilling and sodium silicate, reflecting the broader national shift toward green energy and infrastructure development. Several other end-use segments—including textiles, dyes, intermediates and construction-related applications—also demonstrated healthy domestic consumption, although export-oriented categories were impacted by global tariff-related disruptions.
Despite this favourable demand environment, the domestic market faced a pronounced oversupply situation. Additional domestic capacities, along with continued high imports from major exporting regions, contributed to elevated inventory levels. Measures such as the Minimum Import Price (MIP) did not provide the anticipated relief and the absence of Anti-Dumping Duty (ADD) resulted in continued pressure on market prices.
Operating rates across Indian producers remained stable, supported by consistent production and new or converted capacities. While domestic demand growth was largely met through local supply, the sharp increase in imports—especially during the first half of the year—added to market oversupply.
Although, input costs such as coal remained relatively stable and on the lower side, the decline in soda ash prices outpaced reductions in production costs, leading to margin pressure across the industry. Overall, FY2026 reflected steady demand, but challenging pricing conditions shaped by elevated supply and strong import competition.
II. Sodium Bicarbonate
Sodium bicarbonate is a versatile product with applications across food additives, animal feed, pharmaceuticals, textiles, dyes and industrial emission control, offering strong potential for long-term value creation. Across India, Singapore and the UK, the Company operates with a combined annual capacity of 4,40,000 tonnes, enabling a well-positioned presence in both domestic and export markets.
During FY2026, demand for sodium bicarbonate remained healthy, with growth supported by multiple high-value segments. In India, the Flue Gas Treatment (FGT) segment continued to expand, supported by ongoing trials and supplies to major utilities. The food and baking segment also showed steady growth, driven by rising consumption of packaged and baked products, while the animal feed sector remained active but continued to be highly price-sensitive. Demand in pharmaceutical and haemodialysis applications remained constrained due to limited regulatory visibility and lower awareness levels, impacting premium uptake. In the UK, the Company maintained its strategic focus on high-grade Food, Pharma, Haemo and FGT applications, where demand and pricing remained stable. In the UK, the transition to natural soda ash–based production temporarily increased technical-grade output, which was tactically directed toward lower-value segments such as animal feed and standard FGT, both of which continue to face competitive pressure from low-cost imports. Overall, the Companys diversified product portfolio and strengthened presence in value-added segments ensured steady demand, even as market conditions remained competitive across some application categories.
III. Salt
Salt continued to show stable demand during FY2026. Across India and the UK, the Company operates with a combined annual capacity of 21,00,000 tonnes. In India, edible salt remained an essential household and food processing ingredient and the Company maintained healthy growth while continuing to serve key partners, including Tata Consumer Products Limited.
In the UK, demand softened slightly due to broader economic conditions, especially in industrial and chemical sectors. Despite this, the Company maintained a steady position in the market. Work is underway to introduce pharmaceutical-grade salt, supported by planned GMP EP/USP certification, which is expected to unlock opportunities in medical and healthcare applications. Additionally, the Company continued to grow its presence in the water-treatment sector, supported by a strong focus on product quality and reliable service.
c. Specialty Products
I. Precipitated Silica
The Company has consolidated its position in the Specialty Silica segment, offering an extensive range of conventional and HDS products with an annual capacity of 13,800 MTPA.
In FY2026, Specialty Silica business witnessed several notable developments:
Market Resilience
Tata Chemicals has demonstrated strong market resilience in precipitated silica, particularly HDS, by sustaining demand despite competitive pressures in conventional grades. The Companys consistent capacity utilisation and ability to align with evolving tyre industry requirements have reinforced its presence in the specialty silica segment.
Strategic Investments
The Company continued to make targeted investments in its Specialty Silica operations, leveraging digitisation and Salesforce implementation to take data driven decision making, strengthen infrastructure, streamline processes and enhance systems for greater efficiency and consistent product quality. At its Cuddalore plant, HDS production achieved 100% capacity utilisation, supported by the development of advanced HDS grades designed to meet upcoming global tyre quality requirements. To address rising demand, a new 10 TPD production line capable of producing microsphere grades of silica has been commissioned.
Market Expansion
By developing global channel partner and distributor network, the Company expanded its market reach while strategically prioritising high-end applications in tyres and rubber goods. Supplies to radial tyre plants are consistently growing, demonstrating customer confidence on our products for highly sensitive silica application segment in tyres. Leveraging its proximity to the Cuddalore plant, the Company is serving customers locally to offset rising freight costs, ensuring faster and more efficient supply. This approach not only unlocked new growth opportunities overseas but also reinforced its competitive edge in India, where successful trials and approvals from leading tyre brands have further cemented its position in the high-performance tyre segment.
Sustainability Focus
The demand for Rice Husk Ash (RHA)-based silica is at early stages of growth in India, particularly for high-performance tyre applications where the HDS platform provides a strong foundation for innovation. The Company is closely collaborating with tyre manufacturers to co-develop next-generation sustainable materials, including green substitutes for 6PPD (antioxidant) and eco-friendly silanes as silica coupling agents. These initiatives not only align with global sustainability goals but also support the transition toward greener tyres, positioning the Company as a strategic partner and preferred supplier for leading tyre brands seeking high-performance, environmentally responsible solutions.
II. Prebiotics and Formulations
The Prebiotics (FOS) business maintained steady growth, supported by increasing global focus on gut health, with scFOS demand increasing at a 7% CAGR. The business delivered strong performance with over 26% volume growth across domestic and international markets.
The Company enhanced its market positioning through R&D led technical white papers and participation in key trade fairs in India and the US. New opportunities are emerging in pet nutrition and baby food, particularly in international markets, where deeper research will guide future expansion.
Several projects with leading global food companies were commercialised in India, with additional development underway in the US. Strong relationships with multinational brands continue to support faster qualification in overseas markets. The Company has commissioned its new 4,500 MT L55 expansion line at Mambattu in Andhra Pradesh, strengthening production capacity and supporting long-term growth. Product differentiation remained a focus area with the introduction of FOS L55+, designed for bakery and traditional sweets, offering 50% sugar reduction and currently under pilot launch.
III. Agrochemicals and Seeds Agrochemicals
The global crop protection industry continues to play a critical role in safeguarding agricultural productivity. The global market was estimated at approximately USD 67–70 billion in 2025 and is projected to grow to USD 88–92 billion by 2030, reflecting a CAGR of about 5–5.5%. Growth is driven by rising food demand, shrinking arable land, increasing pest resistance and the need to mitigate climate related yield risks. Alongside conventional agrochemicals, biological crop protection solutions are witnessing faster adoption, supported by regulatory encouragement and increasing farmer awareness.
In India, the crop protection market is estimated at around USD 2.6 billion, with medium term growth projected at ~4–5%. Within the domestic market, insecticides continue to account for the largest share, while herbicides remain the fastest growing category, expanding at over 10% annually, driven by labour shortages and increasing mechanisation. The industry remains characterised by variability in seasonal demand, weather related disruptions and pricing pressures arising from global competition, while structural drivers such as sustainability led practices, improved application technologies and regulatory formalisation continue to strengthen the long term outlook.
Seeds
Seeds remain the most fundamental input in agriculture, with seed technology playing a vital role in enhancing crop yields, improving resilience to climatic stress and supporting sustainable farming practices. The seeds ecosystem during the year operated across a wide geographic footprint, covering 10 states, engaging approximately 31,000 seed villages and achieving seed production of around 21,000 metric tonnes.
The distribution network continued to expand, supported by a retail footprint of nearly 30,000 retailers, reinforcing market reach and farmer access.
The sector continued to face challenges arising from climatic volatility and supply side constraints, even as demand patterns evolved across crops and regions. Advancements in breeding techniques, data enabled planning and region specific product development remain increasingly important in addressing productivity gaps and adapting to changing cultivation practices. As cropping patterns shift and the need for climate resilient, high quality hybrids grows, the seeds segment remains strategically positioned to contribute to long term agricultural productivity and sustainability.
d. Entity-wise Performance
Tata Chemicals India (Standalone) I. Operations
Sales trend of Basic Chemistry Products is as follows:
Basic Chemistry Products
| Volume in lakh MT | ||
| Products | FY2025-26 | FY2024-25 |
| Soda Ash | 8.3 | 7.2 |
| Sodium Bicarbonate | 2.0 | 1.5 |
| Salt | 14.4 | 13.5 |
Soda ash realisations were lower during FY2026 as compared to FY2025. While there was an increase in sales volume, increased global supply levels led to drop in pricing.
On the manufacturing side, Iodised salt production was higher in FY2026 as compared to the previous year. Along with this, the realisation also showed a marginal increase. With favourable demand for sodium bicarbonate, Company achieved higher volumes during FY2026 as compared to FY2025.
Sales trend of Specialty products is as follows:
TCL India-Specialty Products Sales
| Volume in MT | ||
| Products | FY 2025-26 | FY 2024-25 |
| Silica | 9,352 | 7,554 |
| FOS | 3,463 | 2,922 |
Tyre demand increased during FY2026. Tyre labelling norms will continue to drive HDS demand.
While the realisation for Silica was marginally lower as compared to FY2025, the margins were also lower in the current year due to higher input material costs.
As part of the debottlenecking, the Company has commissioned a 4,500 TPA L55 plant at Mambattu.
II. Financials (continuing operations)
Rs. in crore
| TCL India | FY 2025-26 | FY 2024-25 |
| Revenue from Operations | 4,831 | 4,441 |
| EBITDA | 954 | 818 |
| Profit before exceptional item | 686 | 624 |
| Profit before tax (PBT) | 672 | 624 |
| PAT (Profit from continuing operations) | 606 | 524 |
Subsidiaries
Tata Chemicals North America Inc., USA (‘TCNA) I. Operations
Sales trend of Basic Chemistry Products is as follows:
TCNA Sales
| Volume in lakh MT | ||
| Product | FY2025-26 | FY2024-25 |
| Soda Ash | 22.7 | 23.6 |
In FY2026, the sales of Soda ash decreased by 4% over the previous year, driven by lower sales exports by 16%.
This was partly compensated by higher sales in the domestic market by ~10%. At the same time, the realisations were lower both in the domestic as well as exports market
II. Financials (continuing operations)
Rs. in crore
| TCNA | FY2025-26 | FY2024-25 |
| Revenue | 4,936 | 5,261 |
| EBITDA | 294 | 648 |
| Profit before exceptional item | (368) | 31 |
| PBT | (2,205) | 31 |
| PAT | (2,287) | 61 |
The decrease in revenue in FY2026 over the previous year was driven by decrease in both volume and price. Result is impacted due to exceptional item of C 1,837 crore on account of non-cash impairment of goodwill.
Tata Chemicals Europe Group Limited, UK (‘TCE Group) I. Operations
Sales trend of Basic Chemistry Products is as follows:
TCE Group Sales
| Volume in lakh MT | ||
| Products | FY2025-26 | FY2024-25 |
| Soda Ash | 0.8 | 1.7 |
| Sodium Bicarbonate | 0.6 | 0.8 |
| Salt | 2.7 | 2.9 |
During FY2026, the salt sales volume was lower by 5% as compared to FY2025. Revenue was lower by 27% over FY2025, due to lower sales volume and lower realisations of Soda ash, Bicarb & Salt. The Lostock Soda ash facility was closed in FY25.
II. Financials (continuing operations)
Rs. in crore
| TCE Group | FY2025-26 | FY2024-25 |
| Revenue | 1,461 | 2,007 |
| EBITDA | 88 | 25 |
| Profit before exceptional item | (202) | (298) |
| PBT | (267) | (423) |
| PAT | (267) | (423) |
Tata Chemicals Magadi Limited, Kenya (‘TCML) I. Operations
Sales trend is as follows :
TCML Sales
| Volume in lakh MT | ||
| Product | FY2025-26 | FY2024-25 |
| Soda Ash | 2.9 | 2.8 |
Soda ash is the key product in the TCML portfolio, mainly servicing the container glass and silicate sectors in the East African market and export markets in South East Asia and the Indian subcontinent.
II. Financials (continuing operations)
Rs. in crore
| TCML | FY2025-26 | FY2024-25 |
| Revenue | 586 | 612 |
| EBITDA | 101 | 142 |
| PBT | 92 | 149 |
| PAT | 48 | 118 |
Inspite of a higher sales volume of Soda ash by ~ 15%, there is a decrease in revenue by 4% over the previous year. This is due to lower realisation of Soda ash in line with global price trend.
Rallis India Limited
I. Operations - Revenue
Rs. in crore
| Business Division | FY2025-26 | FY2024-25 |
| Crop Care | 2,416 | 2,245 |
| Seeds | 481 | 418 |
Note: Excluding inter-Company transactions
II. Financials
Rs. in crore
| Rallis | FY2025-26 | FY2024-25 |
| Revenue | 2,897 | 2,663 |
| EBITDA | 364 | 288 |
| Profit before exceptional item | 290 | 187 |
| PBT | 250 | 187 |
| PAT | 184 | 125 |
Note: The figures are as per TCLs consolidated books
The revenue grew 9% compared to the previous year, driven by volume growth. Crop care business grew by 8% over the previous year, seeds by 15%, B2C business by 5% and B2B business by 14%.
5. Business Outlook
The global soda ash market is expected to remain subdued in FY2027, with overall demand growth estimated at ~ 0.2%. This reflects a divergence across regions, with China projected to contract by around 2.1%, while the rest of the world is expected to grow by ~ 3%. India, the United States and Western Europe are anticipated to register growth of around 6%, 3% and 1.4%, respectively, supported by steady end-use demand.
Global demand is expected to increase marginally by approximately 0.1 million tonnes, while new capacity additions of nearly 3.8 million tonnes primarily in China, are likely to come onstream. Notably, Inner Mongolia is expected to add around 2 million tonnes of natural soda ash capacity. This significant supply overhang is expected to create an oversupplied market environment, exerting downward pressure on prices and potentially leading to production rationalisation among high-cost producers.
Global trade growth is expected to moderate amid heightened geopolitical risks and policy uncertainty. Ongoing conflicts and supply chain disruptions are likely to increase logistics and energy costs, while continued trade tensions may accelerate supply chain reconfiguration. As a result, businesses are increasingly prioritising resilience, regionalisation and supply security over cost-led sourcing strategies.
In India, soda ash demand—currently estimated at approximately 5 million tonnes —is expected to grow at around 6% in FY2027, driven primarily by strong demand from flat and solar glass segments. Detergent demand is expected to remain stable, while the textile sector is likely to exhibit cautious recovery. Continued inflow of low-priced imports is likely to exert pressure on domestic pricing, necessitating a sharper focus on cost optimisation, capacity utilisation and operational efficiency.
The Company will continue to prioritise ramp-up of the 200 KTPA soda ash capacity commissioned at Mithapur in FY2025, with a focus on achieving optimal utilisation and improving cost competitiveness.
The outlook for the specialty portfolio remains positive. Demand for specialty silica is expected to grow, supported by increasing adoption of green-labelled tyres and sustainability-driven product requirements. In the nutrition segment, expansion in food & beverages, feed and pharmaceutical sectors is expected to drive demand for high-purity sodium bicarbonate and salt. The Company continues to strengthen its presence in these segments through portfolio expansion and customer penetration.
During the year, the Company commissioned 50 KTPA of salt capacity at Mithapur, 4.5 KTPA of prebiotics capacity (L55) and acquired Novabay Pte. Ltd., Singapore, adding 60 KTPA of premium-grade sodium bicarbonate capacity. These investments are expected to support growth in high-value segments and improve overall asset utilisation. Demand for specialty silica in tyre applications in India continues to witness strong growth, driven by increasing adoption of highly dispersible silica, which enhances fuel efficiency and reduces emissions. The Company is focused on accelerating growth through customer onboarding and planned capacity expansions, including the commissioning of 3.5 KTPA of microsphere silica capacity.
In the US, soda ash demand is expected to remain largely stable , while export markets in South America and Asia (excluding China) are expected to show moderate growth. Capacity additions in China are expected to offset supply-side adjustments elsewhere, including the closure or mothballing of higher-cost assets, limiting any meaningful tightening of global supply.
In the UK, soda ash demand is expected to improve gradually, although pricing pressures may persist due to imports and competitive intensity. Salt volumes are expected to remain resilient, supported by demand for high-purity and specialty applications. Bicarbonate demand is expected to remain stable, with the Company maintaining a strong position in premium segments such as food and pharmaceuticals.
In Kenya, the focus will remain on strengthening the East African market and optimising market mix to enhance realisations. Operational priorities include stabilisation of the electric calcination plant (50 KT), improvement in product quality through solar-pure CRS and continued focus on cost optimisation and efficient capacity expansion.
Overall, the Company remains focused on driving sustainable and profitable growth through portfolio diversification, operational excellence and disciplined capital allocation, while navigating a challenging global supply-demand environment.
6. Risks and Opportunities
The Company has well established approach and framework for identifying, measuring, prioritising and mitigating business risks and opportunities across geographies and segments. A detailed description of key risks and opportunities their potential impact and mitigation actions is covered in "Risks and Opportunities" section on Page 28. Having manufacturing operations spread across four continents, the Company has exposure to varied risks including global geopolitical unrest, cyclicality of demand, ongoing trade tariff conflicts, energy price fluctuations, changing climatic conditions, etc. While some of these risks are relevant across all geographies, we also identify and assess geography specific risks and opportunities.
India Operations
India Operations of Tata Chemicals are exposed to risks arising from rapid geopolitical disturbances and uncertainties caused by ongoing regional conflict in the Middle East, technological advancements, which may lead to obsolescence of legacy systems, reduced process efficiency and capability gaps across operations and maintenance functions. In response, the Company is undertaking a structured digital transformation program aimed at enhancing operational reliability, decision-making and workforce productivity. Key initiatives include implementation of Industrial Internet of Things (‘IIoT) - enabled systems in salt works for real-time pump monitoring and predictive maintenance, enabling early fault detection and reduction in unplanned downtime. In parallel, plant-wide digitisation of logbooks through e-logbook systems across soda ash, power, cement, vacuum salt and Cuddalore operations is improving data integrity, traceability and shift-level decision-making.
Amidst ongoing regional war in the middle east and trade conflicts across economies import-dependent raw materials, energy inputs and exports, continue to pose risks to operational continuity, input availability and cost stability. To mitigate these risks, the Company is strengthening supply chain resilience through increased utilisation of domestic limestone from captive mines, thereby reducing reliance on imports. In parallel, coal blend optimisation is being undertaken to manage supply variability and mitigate cost impacts arising from global price fluctuations and logistics constraints. A structured monitoring mechanism for critical raw materials and process chemicals is in place to ensure availability and inventory control. This is further supported by systematic development of alternate vendors and supplier diversification across fuels, utilities and key inputs, thereby enhancing supply assurance and reducing concentration risk. Advanced digital interventions are being deployed to strengthen process control and quality management. At Mambattu, systems such as Electronic Batch Manufacturing Records (e-BMR), integrated Quality dashboards and QMS-based document management platforms are enhancing batch traceability, compliance and standardisation. At Cuddalore, Power BI (Business Intelligence) –enabled dashboards across production, supply chain and quality functions are enabling real-time performance monitoring and analytics-driven decision-making. Process optimisation is further supported through deployment of advanced decision support tools such as Ammonia Still #3, which facilitates optimisation of excess lime usage and reduction in specific consumption of limestone, coke and steam. Additionally, recipe automation for HDS and conventional silica production based on real-time sodium silicate analysis is improving batch consistency, yield and process efficiency. On the automation and control systems front, the Company is strengthening its technology backbone through upgradation of Siemens PCS7 Distributed Control System from Version 8.2 to 10.0, enhancing system security, control performance and operator interface usability. This is complemented by phased upgradation of DCS systems across sites to ensure standardisation and improved control reliability. Automation initiatives at Cuddalore, including liquefaction systems and jumbo packing stations, are reducing dependency on manual intervention and improving throughput. Further, integration of Gen AI–based applications in autopackers and maintenance functions is supporting troubleshooting, knowledge capture, and bridging the gap between skilled and semi-skilled workforce. From a safety and asset integrity perspective, deployment of AI-enabled vision systems for multiple use cases at Mithapur is enabling real-time monitoring and proactive risk identification. In addition, drone-based inspections are being increasingly utilised for raw material stock verification, overhead line condition monitoring, structural inspections and lime kiln external temperature assessments. These interventions are significantly reducing human exposure to hazardous conditions, minimising the need for scaffolding and improving inspection accuracy and turnaround time. Collectively, these initiatives are enhancing operational resilience, improving cybersecurity preparedness and enabling a transition towards a more digital, automated and future-ready manufacturing ecosystem. Sustainability and decarbonisation imperatives expose the Company to evolving regulatory requirements, cost pressures and expectations on environmental performance, while also providing opportunities for improving resource efficiency and transitioning to low-carbon operations. In response, the Company is advancing its net-zero roadmap through a combination of fuel substitution, energy optimisation and renewable integration. At Mithapur, biomass-based fuels such as pellets and briquettes are being increasingly utilised, along with optimisation of coal blends to enhance combustion efficiency and reduce ash generation. Renewable energy adoption is being scaled at Cuddalore through rooftop solar installations meeting ~20% of power requirements, supplemented by commissioning of a 1.5 MW solar power plant catering to plant demand. Further, decarbonisation efforts are supported by installation of 100% biomass-based hot air generation systems, reducing dependence on fossil fuels in process heating applications. Energy efficiency is being enhanced through deployment of Variable Frequency Drives (‘VFDs) across Effluent Treatment Plant (‘ETP) and utility systems, enabling optimised power consumption. Water stewardship initiatives, including rainwater harvesting and reuse projects at Cuddalore, are strengthening sustainable water management practices. In addition, circular economy interventions such as co-processing of hazardous waste in cement industries are significantly reducing landfill disposal (approximately 300 MT annually at Mambattu), thereby improving environmental compliance and resource utilisation. Collectively, these initiatives are strengthening the Companys sustainability performance while mitigating long-term environmental and cost risks. Workforce-related challenges, including limited availability of skilled manpower at remote manufacturing locations, continue to pose risks to operational stability and knowledge continuity, while also presenting an opportunity to build a future-ready workforce. The Company is addressing these through a structured capability development framework encompassing functional, managerial and digital training programs, including Transcend, Lean Six Sigma, INVEST, Coach and Nurture, etc. In parallel, targeted employee engagement initiatives are being implemented to improve retention, particularly among the Gen Z workforce, through active participation in organisational programs such as ethics, Diversity, Equity & Inclusion (DEI), safety campaigns and technical competitions. Efforts are also underway to enhance workplace infrastructure and employee well-being, including development of food court facilities at Mithapur, completion of Phase 1 of hostel renovations in March 2026, and phased township upgrades. These interventions are integrated with retention strategies to strengthen employee engagement, improve site attractiveness and ensure sustained availability of skilled resources across operations. With increasing digitalisation, cybersecurity risks to Operational Technology (OT) systems have become more pronounced due to legacy infrastructure, limited asset visibility and inadequate IT–OT segregation. The Company is mitigating these risks through implementation of a phased, defense-in-depth OT cybersecurity program, including deployment of dedicated firewalls, establishment of OT Demilitarised Zone (‘DMZ) aligned with the Purdue model and standardisation of network architecture. Key measures such as strengthening asset inventories, defining zones and conduits, enhancing remote access controls, restoring USB controls and improving monitoring and backup systems are being executed, with pilot implementation at Mithapur. Additionally, high human intervention in finished goods handling presents safety and efficiency risks, which are being addressed through installation of palletizers across soda ash and vacuum salt operations, full palletization in sodium bicarbonate, and transition towards jumbo and bulk handling solutions in collaboration with customers, supported by ongoing mechanisation initiatives to improve safety performance and operational efficiency.
US
At our US plant, the age of equipment may lead to disruption in production and increased maintenance spending. Talent acquisition risk, the risk of an aging workforce, the difficulty in hiring the right talent due to other local market opportunities and physical location of the operating facility, presents a risk in ensuring the Company has high performing and engaged workforce. A focus on internal training and capability building alongside a competitive remuneration package is key to retaining experienced workforce. Coal supply is primarily dependent on a sole-sourced entity, with a contract until October 2028. Plans are in place for alternative supplies of coal until the switch over from our current coal and natural gas energy source to 100% natural gas is complete. To help manage the volume of fly ash generated though coal use, the Company has an agreement with a third party who will remove, process and market a proportion of the fly ash we produce, contributing to a reduction in the ash we store onsite.
The Company has secured new lease sections sufficient to provide long-term access to mineable trona. There is no significant capital project planned for FY2027 which might have had potential permit delay leading to significant project completion risk. The variability of insoluble levels in the mined trona can present a problem in surface processing, as well as the ability to mine sufficient volume of material to maintain production rates. Ore management and bed expansion are long-term solutions to this risk while short-term management includes surface blending of trona (mined + stockpile) as well as more frequent moves in the mine away from high insoluble content seams.
Longer term market softness, particularly in high volume export regions (SEA, LATAM) and continued aggressive pricing from competitors could put pressure on all US manufacturers.
A focus on excellent customer service, delivery levels and market competitive pricing is to be sustained to grow our market in desired sectors. In the event of a market downturn, producers in countries with cheaper currencies will be at an advantage and we track US Dollar strength vs. competing currencies like Chinese RMB and Turkish Lira as well as other economic data to provide early indicators of potential market / price movements. The risk of adverse US tax and tariff policy and uncertainty around environmental policy announcements by the federal administration may restrict the ability of the business to maintain growth ambitions. In addition to energy supply issues in our export markets, an extended period of conflict in the Middle East may lead to higher fuel costs in our supply chain and may result in a reduced volume of sales into the export markets, where our pricing is based on a delivered price. There may be some mitigation by way of passing though some of the cost to customers where possible and contracts allow. Opportunities may arise if market prices increase due to higher delivery costs from Europe (which could be a temporary phenomenon) and the need for all manufacturers to increase returns from the recent lows. Increasingly, higher volumes of direct exports will also allow direct customer engagement which help us in aligning our strategic goals of business with the market.
UK
Energy prices and geopolitical turmoil in recent weeks could be a significant challenge; while energy hedges are in place for some purchases in line with policy, if the Middle East conflict continues for a significant time it has the ability to elevate Liquified Natural Gas (LNG) and oil prices for a prolonged period impacting costs, availability of shipping, costs of shipping and packaging to a significant extent.
Prices in the UK salt market continue to reflect a structural change in the UK energy landscape in recent years and there has been significant increase in imports from mainland Europe as output from the Inovyn operation in Runcorn has declined. Any movements will be kept under close review as part of our existing strategy leveraging our competitive advantage to our customers, building a UK market share optimisation plan and managing the latest geopolitical energy risks carefully with our customers.
Very significant progress has been made in FY2026 with achieving European Pharmacopoeia/ US Pharmacopoeia Sodium Bicarbonate production utilising soda ash from the US. The final steps of that progress should be completed by end of H1 FY2027. The Carbon Capture & Utilisation (CCU) plant has been cutover successfully and the captured carbon dioxide is used to manufacture high grade sodium bicarbonate.
The Company now has a new warehouse for high grade salt and sodium bicarbonate. The first European Pharmacopoeia/ US Pharmacopoeia pharmaceutical salt should be registered and sold during FY2027.
Kenya
TCML soda ash market will continue to face competition from different competitors depending on the market. The quality of soda ash still remains a challenge necessitating targeting a niche of container glass and the sodium silicate segments. This shall be mitigated with a tailored market mix strategy, stringent quality controls and roll out of production of better quality EcoAsh in FY2027. Meanwhile, the dispute between the County Government and TCML remains an external risk.
The US-Israel vs Iran conflict could have an impact on availability and cost of critical inventories including fuel (Heavy Fuel Oil – HFO) and packing bags and could have a domino effect on logistics and sales. The above said, the African market does present opportunities for growth and TCML will focus on growing revenue contribution from Africa. Also, energy saving from the utilisation of the solar power plant shall help reduce the costs of production which is critical to helping TCML remain favourable on cost leadership. Additional measures in place include fuel (Heavy Fuel Oil) and packing bags inventory stock up, negotiations with existing and alternative vendors to mitigate rising costs. New agreements in FoB terms where possible and use of alternative available vessels are planned to mitigate freight surcharges and vessel availability risks.
Rallis
Rallis has a strong and comprehensive framework to manage monsoon variability and its effects on Indias agriculture sector, supported by deeper engagement with farmers.
The Company faces risks arising from its dependence on weather patterns, as uneven monsoons influence agrochemical demand. Regulatory challenges, including stringent policies and potential chemical bans, also pose concerns. Dependence on imported raw materials, particularly from China, increases exposure to geopolitical risks and supply chain disruptions, while intense competition and currency volatility continue to exert pressure on margins and profitability.
Rallis is steadily strengthening its market presence, enhancing its product portfolio and driving operational efficiencies anchored in sustainability to tap emerging opportunities in the domestic agricultural landscape. The Company is also developing a digitally enabled platform to deepen farmer engagement. B2B revenues are expected to grow progressively, supported by volume expansion, new product introductions, customer additions and fresh registrations. With these focused initiatives, Rallis is well positioned for sustainable growth,
7. Financial Performance (continuing operations) –
(A) Standalone performance for the year ended March 31, 2026
Rs. in crore
| Particulars | FY2025-26 | FY2024-25 | % Change | Remarks |
| Revenue from operations | 4,831 | 4,441 | 9 | Higher realisation in salt and increased volumes of soda ash and salt have contributed in higher revenue for the Company. |
| Other Income | 379 | 319 | 19 | Other income has increased mainly on account of higher dividend received from non-current investments and interest on income-tax refunds during the year. |
| Cost of materials consumed | 1,323 | 1,141 | 16 | Cost of materials is higher due to higher input costs of raw materials and higher procurements. |
| Purchases of stock-in-trade | 38 | 46 | (17) | Purchases of stock-in-trade decreased mainly on account of lower opportunities. |
| Power and fuel | 954 | 994 | (4) | The reduction in power and fuel expenses compared to the previous year is attributable mainly to lower usage/consumption levels. |
| Freight and forwarding expenses | 610 | 555 | 10 | Freight and forwarding charges have increased majorly due to higher sales volume of soda ash and salt. |
| Employee Benefits | 313 | 293 | 7 | Overall employee costs have gone up mainly due to higher actuarial valuation impact. |
| Finance costs | 219 | 144 | 52 | Finance costs increased mainly on account of interest on Non- Convertible Debentures taken to fund subsidiaries to enable them to repay their loans. |
(B) Standalone Balance Sheet Analysis
1. Investments:
Rs. in crore
| Particulars | FY 2025-26 | FY 2024-25 | % Change |
| Investments in equity instruments in subsidiaries | 3,813 | 3,813 | - |
| Investment in joint ventures | 336 | 336 | - |
| Investment in preference shares in subsidiary | 4,888 | 2,836 | 72 |
| Investment in other companies | 7,711 | 6,858 | 12 |
| Investment in mutual funds | 209 | 397 | (47) |
| Investment in perpetual instruments | - | 150 | (100) |
| Total | 16,957 | 14,390 | 18 |
Increase in the value of investments is mainly due to additional investments made and changes in fair value of investments as compared to previous year.
2. Inventories:
Rs. in crore
| Particulars | FY 2025-26 | FY 2024-25 | % Change |
| Inventories | 1,117 | 947 | 18 |
Inventories are higher primarily due to higher prices and volume on inventory of raw materials.
3. Trade Receivables:
Rs. in crore
| Particulars | FY 2025-26 | FY 2024-25 | % Change |
| Trade receivables | 252 | 252 | - |
4. Other financial assets, advance tax assets (net) and other assets:
Rs. in crore
| Particulars | FY 2025-26 | FY 2024-25 | % Change |
| Other financial assets | 90 | 122 | (26) |
| Advance tax assets (net) | 669 | 828 | (19) |
| Other assets | 273 | 307 | (11) |
| Total | 1,032 | 1,257 | (18) |
Decrease in other financial assets is mainly due to reduction in derivative assets.
Decrease in other assets is mainly due to settlement of advances given compensated by increase in statutory receivables.
5. Borrowings (net) / Cash & Cash Equivalent (net)
Rs. in crore
| Particulars | FY 2025-26 | FY 2024-25 | % Change |
| Non-current borrowings (including lease liabilities) | 3,471 | 1,777 | 95 |
| Current borrowings (including lease liabilities) | 16 | 484 | (97) |
| Total | 3,487 | 2,261 | 54 |
Rs. in crore
| Particulars | FY 2025-26 | FY 2024-25 | % Change |
| Cash and cash equivalent | 37 | 71 | (48) |
| (including Bank balances) | |||
| Borrowings (net) | 3,450 | 2,190 | 58 |
Borrowings increased mainly due to Non-Convertible Debentures taken during the year to fund subsidiaries to enable them to repay loans compensated by repayment of working capital loans during the year.
6. Trade payables, other financial liabilities, other liabilities, provisions, current tax liabilities (net) and deferred tax liabilities (net)
Rs. in crore
| Particulars | FY 2025-26 | FY 2024-25 | % Change |
| Trade payables | 886 | 777 | 14 |
| Other financial liabilities | 263 | 237 | 11 |
| Other liabilities | 114 | 67 | 70 |
| Provisions | 248 | 284 | (13) |
| Current tax liabilities (net) | 2 | 3 | (33) |
| Deferred tax liabilities (net) | 997 | 888 | (12) |
| Total | 2,510 | 2,256 | (11) |
Increase in deferred tax liabilities (net) is mainly due to higher capitalisation of property, plant and equipment and increase in fair value of non-current investments. Increase in trade payables is mainly due to procurements made and outstanding as per terms of the business.
(C) Standalone cash flow analysis
Rs. in crore
| Particulars | FY 2025-26 | FY 2024-25 |
| Net cash flows generated from operating activities | 1,119 | 803 |
| Net cash flows used in investing activities | (1,917) | (2,493) |
| Net cash flows generated from financing activities | 768 | 1,710 |
Net cash flow from operating activities:
Higher operating cash flow in FY 2025-26 due to higher EBITDA and non-cash adjustments.
Net cash flow from investing activities:
Lower cash outflow in FY 2025-26 is mainly on account of lower capital expenditure.
Net cash flow from financing activities:
Lower cash flow in FY 2025-26 is mainly on account of repayment of working capital loans.
(D) Details of significant changes in key Standalone financial ratios:
Debt Equity Ratio (times) of the Company has increased to 0.18 (FY 2024-25: 0.12) due to new borrowing arrangements made during the year for investment in subsidiary and to fund subsidiaries to enable them to repay their loans.
(E) Consolidated performance for the year ended March 31, 2026: i. Revenue from operations
Rs. in crore
| Entity | FY2025-26 | FY2024-25 | % Change |
| Tata Chemicals Limited (‘TCL), | 4,831 | 4,441 | 9 |
| India | |||
| Tata Chemicals North | 4,936 | 5,261 | (6) |
| America Inc. (‘TCNA), USA | |||
| TCE Group Limited - | 1,461 | 2,007 | (27) |
| Consolidated (TCE Group), UK | |||
| Tata Chemicals Magadi | 586 | 612 | (4) |
| Limited (TCML), Kenya | |||
| Rallis India Limited (‘Rallis), | 2,897 | 2,663 | 9 |
| India | |||
| Novabay Pte. Limited | 61 | - | 100 |
| (‘Novabay), Singapore | |||
| Others and Eliminations | (188) | (97) | 94 |
| Revenue from operations | 14,584 | 14,887 | (2) |
Lower sales price of soda ash from India,TCNA, TCE, TCML partly offset by Higher volumes at India.
ii. Cost of materials consumed
Rs. in crore
| Entity | FY2025-26 | FY2024-25 | % Change |
| TCL, India | 1,323 | 1,141 | 16 |
| TCE Group, UK | 165 | 230 | (28) |
| Rallis, India | 1,468 | 1,199 | 22 |
| Novabay, Singapore | 16 | - | 100 |
| Others and Eliminations | (14) | (10) | 40 |
| Total | 2,958 | 2,560 | 16 |
Cost of materials consumed increased primarily at Rallis and TCL offset by decreased in UK.
iii. Purchases of stock-in-trade
Rs. in crore
| Entity | FY2025-26 | FY2024-25 | % Change |
| TCL, India | 38 | 46 | (17) |
| TCNA, USA | 14 | 18 | (22) |
| Rallis, India | 273 | 231 | 18 |
| Others and Eliminations | (21) | (5) | 320 |
| Total | 304 | 290 | 5 |
Lower purchase of stock-in-trade is due to lower volumes in TCL and TCNA, offset by increase in Rallis.
iv. Power and fuel
Rs. in crore
| Entity | FY2025-26 | FY2024-25 | % Change |
| TCL, India | 954 | 994 | (4) |
| TCE Group, UK | 156 | 710 | (78) |
| TCNA, USA | 483 | 507 | (5) |
| TCML, Kenya | 130 | 132 | (2) |
| Rallis, India | 70 | 78 | (10) |
| Novabay, Singapore | 6 | - | 100 |
| Total | 1,799 | 2,421 | (26) |
Power and fuel costs have decreased in TCE Group mainly due to closure of soda ash manufacturing operation in FY25.
v. Employee benefit costs
Rs. in crore
| Entity | FY2025-26 | FY2024-25 | % Change |
| TCL, India | 313 | 293 | 7 |
| TCE Group, UK | 262 | 269 | (3) |
| TCML, Kenya | 98 | 84 | 17 |
| TCNA, USA | 1,083 | 1,074 | 1 |
| Rallis, India | 283 | 275 | 3 |
| Novabay, Singapore | 8 | - | 100 |
| Others | 13 | (6) | (317) |
| Total | 2,060 | 1,989 | 4 |
Employee costs in TCNA, TCL, TCML and Rallis have increased and slight reduction in employee cost in TCE.
vi. Freight and forwarding charges
Rs. in crore
| Entity | FY2025-26 | FY2024-25 | % Change |
| TCL, India | 610 | 555 | 10 |
| TCE Group, UK | 215 | 229 | (6) |
| TCML, Kenya | 99 | 86 | 15 |
| TCNA, USA | 1,915 | 1,771 | 8 |
| Rallis, India | 94 | 90 | 4 |
| Novabay, Singapore | 11 | - | 100 |
| Others | 11 | 5 | 120 |
| Total | 2,955 | 2,736 | 8 |
Freight and forwarding charges have increased in TCL, TCML and TCNA.
vii. Finance costs
Rs. in crore
| Entity | FY2025-26 | FY2024-25 | % Change |
| TCL, India | 219 | 144 | 52 |
| TCE Group, UK | 183 | 180 | 2 |
| TCML, Kenya | 2 | 1 | 100 |
| TCNA, USA | 176 | 177 | (1) |
| Rallis, India | 10 | 12 | (17) |
| Others and Eliminations | - | 49 | (100) |
| Total | 590 | 563 | 5 |
Increase in finance cost in TCL due to increase in borrowing and reduction in finance cost in others due to decrease in borrowing in SPVs.
viii. Other expenses
Rs. in crore
| Entity | FY2025-26 | FY2024-25 | % Change |
| TCL, India | 634 | 602 | 5 |
| TCE Group, UK | 332 | 463 | (28) |
| TCML, Kenya | 178 | 158 | 13 |
| TCNA, USA | 1,151 | 1,238 | (7) |
| Rallis, India | 470 | 454 | 4 |
| Novabay, Singapore | 15 | - | 100 |
| Others and Eliminations | 1 | (5) | (120) |
| Total | 2,781 | 2,910 | (4) |
ix. Other expenses represent the following
Rs. in crore
| Description | FY2025-26 | FY2024-25 | % Change |
| Stores and spares consumed | 328 | 344 | (5) |
| Packing materials consumed | 313 | 299 | 5 |
| Repairs | 551 | 646 | (15) |
| Rent | 73 | 74 | (1) |
| Royalty, rates and taxes | 470 | 453 | 4 |
| Distributors service charges and sales promotion | 133 | 112 | 19 |
| Others* | 913 | 982 | (7) |
| Total | 2,781 | 2,910 | (4) |
*Others include insurance charges, distributors service charges, professional fees, foreign exchange loss, travelling expense, provision for doubtful debts and advances, directors fees / commission, subcontracting cost, outsourcing cost and other expenses.
(F) Details of significant changes in key financial ratios - Consolidation:
1. Operating Margin (%) of the Company has decreased to 4.14% (FY 2024-25 : 5.58%) due to decrease in revenue and profit.
2. Net Profit Margin (%) of the Company has decreased to (11.76%) (FY 2024-25 : 2.38%) due to decrease in revenue, profit and impairment of goodwill of Rs. 1,837 crore.
3. Return on Net worth (%) of the Company has decreased to (7.68%) (FY 2024-25 : 1.70%) due to decrease in revenue, profit and impairment of goodwill of Rs. 1,837 crore.
(G) Total Debt and Amortisation Schedule
Repayment schedule of existing debt
Rs. in crore
| Entity | Gross Debt | Repayments | FY | ||
| Mar- | FY | FY | FY | 2033-34 | |
| 2026 | 2026-27 | 2027-28 | 2028-29 | ||
| TCL consolidated | 8,001 | 2,621 | 3,311 | 1,869 | 200 |
Notes:
1. Gross debt of Rs. 8,001 crore includes Rs. 1,502 crore of working capital loans/ short-term borrowings and Rs. 887 crore of lease liabilities.
2. The repayment schedule for term loans has been prepared considering the existing repayment terms. Some of these loans/facilities may be refinanced / pre-paid, in full or in part, from time to time in future depending on the requirement and the business plans. Non-current portion of finance leases has been included in FY 2027-28 repayment.
8. Innovation and Technology
Innovation Centre
The Innovation Centre (IC) is the Companys Technology, R&D (Innovation) hub for seeding new Green sustainability-led businesses, co-creating products and applications with customers and providing science-based differentiation to its existing businesses, through a customer, market-centric and scientific approach. The Company has filed 468 individual patent applications (cumulatively) with 180 patent grants.
During the year, IC made significant contributions to the development of new grades of green high-surface area HDS, achieved zero waste, solvent-free bio-based surfactant with enhanced solubility and biodegradability. IC has also developed FOS-L85 grade designed for market segments requiring liquid formulations. Asides, IC team has progressed with the development of Synbiotics and efficacy Trials of Postbiotics are underway. In the year, the Company was named among CIIs Indias Top 50 Innovative Companies, declared Grand Jury Winner in the CII Industry-Academia Partnership Awards, awarded "Best Green Product Award" by FICCI Chemicals and Petrochemicals Awards 2025 for RHA-based HDS innovations and was also honoured with Silver Certificate for RHA-based HDS Innovation by the International Academy for Quality.
9. Digitalisation & Information Technology
Building the Digital Core:
Three years into our transformation, the investments we made in foundational infrastructure are now compounding into tangible business outcomes. Our shift from an on-premises to a cloud-first architecture was a deliberate business decision, not merely a technical one. We have gained the agility to scale across geographies, the resilience to keep critical operations running and the speed to bring new capabilities to market.
The enterprise wide rollout of SAP S/4 HANA on RISE has been the most pivotal platform in this transformation cycle, establishing a unified operational backbone that integrates systems for customer management, supplier relationships, logistics visibility and people processes into a single, cohesive architecture. Over the past year, our focus moved from deployment to value realisation: stabilising the platform, driving adoption and ensuring our teams are equipped to extract the full benefit of implementations.
Making Data a Strategic Asset:
A modern manufacturing enterprise runs on the quality of its decisions and those decisions are only as strong as the data behind them. This principle guided the creation of our Data Office and enterprise data framework. With our migration to the Microsoft Fabric Lakehouse, we now operate scalable, governed data pipelines that elevate analytical maturity. Leadership leverages CxO dashboards with real-time KPI visibility, grounding decisions in empirical insight. This capability helps us detect market signals and operational variances faster, turning data into a true competitive advantage.
To accelerate value creation, we are establishing an AI Center of Excellence (CoE) as a federated capability connecting technology teams with shop floor domain experts. In partnership with academic institutions, we are training over 40 employees, strengthening internal intellectual capital and reducing dependence on external vendors.
Digitising the Shop Floor:
The ultimate test of our digital program is its impact on the plant floor. At our Mithapur facility, the deployment of Process Twins is optimising production in real time. Complementing this, our Asset Twins are shifting our maintenance paradigm from hindsight to foresight. The business case is straightforward: by predicting failures before they occur, we reduce unplanned downtime, lower maintenance costs and enhance delivery reliability.
We are also finding practical applications for Generative AI in equipment diagnostics, augmenting the expertise of our engineers with rapid, data-driven resolution. Furthermore, we are deploying AI-powered video analytics to enhance workplace safety and exploring technology to tighten production volume estimates. By integrating these tools into our Digital Lean Six Sigma program, we ensure that technology is backed by process discipline, creating a sustainable culture of continuous improvement.
Strengthening Sales and Supply Chain Execution:
Our digital narrative extends into the heart of our sales and supply chain operations. ChemForce (Salesforce) provides our sales teams with a 360-degree view of the customer lifecycle, fostering greater sales discipline and informed engagement. SAP Ariba (Setu) strengthens supplier lifecycle management, ensuring transparency and cost efficiency globally.
In logistics, our Saarthi platform has digitised domestic dispatch, from indent allocation to proof of delivery. Through our digital EXIM systems, we are digitising all export and import documents and ensuring compliance adherence. RPA in Finance Shared
Services has shifted teams from transactional work to strategic partnering, enabling focus on high value analysis and exceptions
Cybersecurity - Protecting What We Have Built:
As our digital footprint expands across operational and commercial systems, we view cybersecurity as a strategic enabler rather than a compliance obligation. We have made material progress by modernising our Security Operations Centre and deploying next-generation endpoint detection and multi-factor authentication. Centralised dashboards now provide proactive threat visibility, while upgrades to our network infrastructure further reinforce resilience. Validated by our ISO 27001 certification, these efforts reflect a dynamic framework for continuous improvement. In an escalating threat landscape, our ongoing investment in prevention and detection safeguards our enterprise value and maintains stakeholder trust.
Looking Ahead - Intelligence Embedded in Every Process:
Our next phase marks a transition from Systems of Record to Systems of Intelligence. By expanding Digital Twin coverage and AI driven decision support, we are evolving our data foundation into a predictive engine. We are currently exploring Agentic AI within our Global Capability Centres (GCC). Our digital transformation progress is strictly calibrated against our risk framework, skill availability and the regulatory environment. Every digital investment remains tied to measurable business outcomes, ensuring responsible adoption at scale rather than deploying technology for its own sake.
10. Human Resources
Our people strategy continues to be anchored in building a future-ready, agile and inclusive workforce that can support the Companys growth ambitions while delivering sustained value to customers and stakeholders.
As part of our ongoing efforts to transition towards a functional structure, the Company made significant progress by establishing a Global Capability Center (GCC) at Gift City, Gandhinagar. This initiative is focused on bringing together the right talent, supported by robust infrastructure and enabling policies, to enhance our global delivery capabilities. The GCC is designed to improve operational efficiency while also serving as a hub for cross-functional collaboration.
By leveraging the Learning Architecture, the Company continued to make strides towards future-forward skill-building and structured capability-building programs to deepen domain expertise across functions. Programs such as SalesX and FinX focus on deepening functional capabilities and driving excellence in execution. In parallel, we have expanded efforts to build critical skills in project management, innovation, business excellence and data and digital capabilities. Learning platforms such as Tata Tomorrow University and LinkedIn Learning continue to enable employees to take charge of their own learning journeys, supporting self-driven skill development that aligns with their career aspirations and the Companys evolving business requirements.
Recognising the transformative potential of AI, the Company has deployed targeted programs, including Transcend 2.0, Prompt Engineering and Leveraging Co-Pilot across functions. These initiatives are aimed at embedding AI into everyday workflows, enhancing productivity and enabling data-driven decision-making. The focus remains on building enterprise-wide AI fluency to strengthen operational excellence and drive competitive advantage.
Leadership development remains a key priority, with sustained investments in building a strong internal leadership pipeline. The Company continued its focus on flagship in-house programs such as Increase Value Enhancing Skills for Tomorrow (INVEST) and Coach and Nurture, which are designed to enhance leadership effectiveness and build coaching capabilities. These efforts are complemented by participation in programs offered by the Tata Management Training Centre (TMTC), industry bodies and premier academic institutions, ensuring that our leaders are equipped with global perspectives and skills to navigate emerging challenges and opportunities.
Employee feedback remains a cornerstone of our people practices. Through x-prESS 2026, our employee engagement survey, which concluded in March 2026, we will translate insights into focused action plans to enhance the overall employee experience. Our democratic R&R platform, Kudos, ensures that appreciation is embedded in everyday moments, reinforcing the behaviours and values we cherish. This initiative was conferred with the silver at the prestigious Brandon Hall Technology Excellence Award, underscoring our commitment to fostering a culture of appreciation.
The Companys commitment to creating a diverse, equitable and inclusive workplace continues. Our DEI efforts, guided by the LEAD (Leadership, Ecosystem, Awareness & Training and Data) framework to ensure that all employees feel valued, respected and empowered. During the year, we strengthened our focus on DEI through initiatives such as the "Inclusive by Design" training program and a dedicated DEI Month, which featured a range of interventions, including the 2nd edition of the ‘Enable to Thrive program for early-career women on the shopfloor, panel discussion, targeted communications and a program on intergenerational diversity to build awareness and encourage dialogue across the organisation. The ‘Enable to Thrive program was complemented by a manager allyship workshop, helping to translate intent into meaningful actions
Ethics remains foundational to how we operate, guided by the Tata Code of Conduct. Ethics Month, observed annually in July, reinforces the importance of integrity and accountability in everyday decision-making. The Company also strengthened its focus on workplace safety and respect through initiatives such as the Train-the-Trainer (TTT) program for Prevention of Sexual Harassment (POSH) committee members, ensuring a safe and respectful work environment for all.
Through these integrated efforts, the Company continues to build a resilient, high-performing and future-ready workforce aligned with its strategic priorities.
11. Safety and Health
At Tata Chemicals, safety continues to be a core value.
The Company aspires to establish itself as a benchmark in the Chemical industry and become a Zero Harm Company. The Company integrates a culture of accountability, upholding an unswerving commitment to upholding Companys responsible policies and practices. This is in line with Companys Golden safety rules and Principles across all geographies. This management-driven initiative fosters continuous improvement in safety system and practices and guarantees active stakeholder participation in various Safety and Health interventions. Additionally, the Company provides comprehensive learning sessions to ensure all personnel gain a clear understanding of potential hazard and risks associated with activities.
Chaired by an Independent Director, the Board has established a dedicated Safety, Health, Environment and Sustainability (SHES) Committee. The Committee is responsible for reviewing and monitoring the Companys policies, guidelines, practices and performance on regular intervals, along with performing other tasks, such as proactively integrating safety and sustainability considerations into strategic initiatives, audits, benchmarking and annual improvement plans.
The Companys unwavering commitment to the safety, health and well-being of all stakeholders is reflected by the comprehensive Safety, Health and Environment (SHE) Policy. This Policy framework ensures alignment with the organisational objectives across all sites and subsidiaries. Individual locations may adopt the Corporate SHE Policy directly or develop their own versions to adhere to both the Corporate Policy and local regulations.
The Corporate SHE Policy integrates seamlessly with other key documents, including the Group Safety Policy, Group Safety Management standard, Consequence Management guidelines, Corporate Sustainability framework, Corporate Mission, Vision and Values, Responsible Care guidelines and International Labour Organisation (ILO) standards.
The entire Health and Safety Framework is based upon Two Principles and Ten Safety Golden Rules. The Company leverages a comprehensive set of voluntary standards, such as Process Safety and Risk Management (PSRM), ISO 45001, ISO 14001), Responsible Care and British Safety Council guidelines. The Company strives to adopt industrys best practices, by consistently refining its strategies to foster a culture of safety. Senior management leads by example, actively fostering a safety-conscious workforce, while employees receive specialised training to identify and mitigate potential hazards, risks and various control measures in terms of Layer of Protection. Additionally, the Safety Felt Leadership and Safety Steward initiative empowers leaders to take ownership of safety within their teams and drive continual improvement. Further, monthly reviews by the Managing Director & CEO on safety and health improvement plans and controls on Key Safety Risks emphasise the Companys commitment to fostering a safe work environment.
The Company encourages employees to identify and report potential hazards, near-misses and unsafe behaviours using digital tools. The PSRM programme is implemented at sites to proactively manage potential risks associated with the manufacturing processes. Additionally, Contractor Safety Management programme ensures same safety standards as a Company employee. To address health risks, the Company also conducts periodic industrial hygiene assessments and health check-ups, providing adequate medical facilities on-site and establishing partnerships with specialised healthcare providers.
The Company utilises a "Serious Injury and Fatality (SIF) Potential Approach" within accident prevention programme. This proactive approach identifies and addresses potential hazards before they cause serious injury or harm. Additionally, the Company tracks leading indicators under Progressive Safety Index (PSI) elements to measure progress and identify areas for improvement. Furthermore, annual targets are set based on organisational needs, aspirations and past performance. By synergising digital efficiency and data analytics, the Company is steadily setting new standards in the industry. Marching ahead on its digital journey, Company has further sharpen use of AI in various safety use cases, providing digital boards at strategic locations and initiating digital work permit at its Mithapur site.
12. Sustainability
For Tata Chemicals Limited, sustainability remains central to its business philosophy and operational strategy. The Company continues to align its sustainability agenda with the global priorities outlined in the Sustainable Development Goals of the United Nations, while integrating strong Environmental, Social and Governance (ESG) considerations into its business processes. The sustainability framework is guided by the principles of Materiality and Responsible Care, ensuring that key environmental and social priorities are embedded across operations. During the year, the Company continued to build upon the insights derived from the comprehensive stakeholder-driven Double Materiality Assessment conducted earlier in accordance with the Corporate Sustainability Reporting Directive, supported by an independent third party.
In line with the sustainability vision of the Tata Group under Project Aalingana, the Company remains focused on three strategic pillars: Driving Net Zero, Pioneering circular economy and resources management (Water, Material and waste) and Preserving nature and biodiversity
As part of its commitment to achieving Net Zero emissions, the Company continues to implement measures aimed at lowering its carbon footprint. These include adoption of lower-emission and carbon-neutral fuels, continuous improvements in energy efficiency, increased use of renewable energy sources, installation of carbon capture systems and exploration of innovative low-carbon technologies. The Company is also progressing towards becoming water positive and maintaining zero solid waste disposal to landfill. Circular economy principles remain integral to manufacturing operations, with sites actively implementing the 3R approach—Reduce, Reuse and Recycle.
The Company also recognises the importance of protecting natural ecosystems and works towards maintaining a net-neutral impact on biodiversity around its operational areas. Particular emphasis is placed on safeguarding coastal and marine ecosystems. In this direction, a three season Biodiversity Impact Assessment study by an independent agency has been initiated for the Mithapur facility to evaluate ecological interactions and guide future conservation efforts.
To strengthen ESG data management and reporting, the Company uses ESG Compass, a digital platform that enables systematic collection, analysis and monitoring of sustainability indicators across its entities. The Company also aligns its environmental management and disclosure practices with internationally recognised frameworks such as ISO 14001, Responsible Care, the Global Reporting Initiative (GRI) and the Science Based Targets initiative, supporting its ongoing efforts to reduce carbon intensity.
The Company continues to disclose its ESG performance to stakeholders through established reporting platforms including Business Responsibility and Sustainability Reporting, the Carbon Disclosure Project (CDP), International Integrated Reporting Council, the United Nations Global Compact (UNGC), Eco Vadis and the Dow Jones Sustainability Index under the Corporate Sustainability Assessment. To ensure transparency and credibility of non-financial disclosures, independent assurance is undertaken, with reasonable and limited assurance reports issued by KPMG Assurance and Consulting Services LLP.
Integrated Report
The Company has adopted the IIRC framework to establish integrated reporting within the mainstream business. In accordance with the IIRC Framework, the Company has included an Integrated Report <IR>. The <IR> seeks to provide a concise and integrated account of how the Companys strategy, governance, performance and prospects are delivering on its core purpose – being a global Company. The <IR> encompasses all key financial and non-financial performance indicators which are material to the Company as per GRI, UNGC and CDP. It plays a crucial role in establishing the linkages between environmental and social sustainability, as well as the financial growth of the organisation. The <IR> contains assured sustainability data for FY2026 for entities across the enterprise. The financial information has been audited by B S R & Co. LLP and the non-financial information has been assured by KPMG Assurance and Consulting Services LLP.
13. Business Excellence
The Company remains committed to continually raising the bar on performance in all aspects of its business. The Tata Business Excellence Model (‘TBEM) serves as a pivotal framework that allows the Company to gain insights into its performance and establish continuous improvement initiatives for attaining superior business results and maximising satisfaction and value for the customers.
The TBEM framework comprises six core areas of business excellence: Leadership, Strategic Planning, Customer Focus, Analysis and Knowledge Management, Workforce Focus and Process Management. For the Company, a global organisation that has its manufacturing operations spread across four continents with diverse business segments and employees from different cultures, TBEM serves as a platform to establish a consistent standard of excellence. The Company participated in the Tata Group TBEM assessment in 2024 and retained the Industry Leader status. This affirms the Companys commitment to strengthening the culture of excellence and progress towards becoming a world-class organisation.
14. Internal Controls
The Company has an independent Internal Audit function with a well-established risk management framework. The scope and authority of the Internal Audit functions are derived from the Internal Audit Charter approved by the Audit Committee. The Company has engaged a reputable external firm to support the Internal Audit function for carrying out the Internal Audit reviews.
Reviews are conducted on an ongoing basis based on a comprehensive risk-based audit plan, which is approved by the Audit Committee at the beginning of each year. The Internal Audit team reviews and reports to the management and the Audit Committee about compliance with internal controls and the efficiency and effectiveness of operations as well as the key process risks.
The Audit Committee meets periodically to review and discuss the various Internal Audit reports and follow up on action plans of past significant audit issues and compliance with the audit plan.
15. Risk Management Framework
The Company has constituted a robust governance structure consisting of five levels, thereby ensuring both bottom-up and top-down approaches.
A Risk Management Committee (‘RMC) is constituted to oversee the risk efforts in the Company. The RMC meets quarterly to review key risks and assess the status of mitigation measures. The Companys approach to risk management is designed to provide reasonable assurance that its assets are safeguarded and the risks facing the business are being assessed and mitigated.
The key roles and responsibilities regarding risk management in the Company are summarised as follows:
1. Board of Directors
Reviewing and guiding Risk Policy of the Company. Ensuring the integrity of the systems for risk management
2. Risk Management Committee of the Board
To formulate a detailed risk management policy which shall include:
A framework for identification of internal and external risks, specifically faced by the Company, in particular, including financial, operational, sectoral, sustainability (particularly ESG related risks), information, cyber security risks or any other risk as may be determined by the Committee;
Measures for risk mitigation including systems and processes for internal control of identified risks;
Business Continuity Plan.
To ensure that appropriate methodology, processes and systems are in place to monitor and evaluate risks associated with the business of the Company.
To monitor and oversee implementation of the risk management policy, including evaluating the adequacy of risk management systems.
To periodically review the risk management policy, at least once in two years by considering the changing industry dynamics and evolving complexity.
To keep the Board of Directors informed about the nature and content of its discussions, recommendations and actions to be taken.
The appointment, removal and terms of remuneration of the Chief Risk Officer (if any) shall be subject to review by the Risk Management Committee.
3. Risk Management Group at Senior Leadership Level
Identification and review of enterprise risks from time to time, initiating mitigation actions, identifying owners and reviewing progress
Identification and review of risk appetite and risk trigger (at Enterprise Level)
Implementation of Risk reduction strategies
Deploying Risk Management Policy
Deploying practices for identification, assessment, monitoring, mitigation and reporting of risks
Providing updates to RMC from time to time on the enterprise risks and actions taken
4. Risk Management Group at Business Unit (BU) Level/ Subsidiary Level
Reviewing respective BU/ Subsidiary risks from time to time, initiating mitigation actions, identifying owners and reviewing progress
Identification and review of risk appetite and risk trigger (at BU/ Subsidiary Level)
Implementation of risk reduction strategies
Deploying Risk Management Policy
Deploying practices for identification, assessment, monitoring, mitigation and reporting of risks
Providing updates to TCL Management Committee (RMG) and RMC level from time to time on the respective Business/ Subsidiary level risks and actions taken
5. Risk Owners
Responsible for developing and acting on the risk mitigation plan
Providing periodic updates to RMC on risks with the mitigation plan
Sustainability Risks are the risks arising out of adverse impacts that the business activities have on environment (planet) and communities (people).
Strategic Risks include the range of external events and trends (like Government policy) that can adversely impact the Companys strategic growth trajectory and destroy stakeholder value. They also include the risks arising out of the choices the Company has made in defining its strategy.
Operational Risks are those risks that are associated with operational uncertainties, including failure in critical equipment, attrition, loss of data from cyber attacks, etc.
Financial Risks are risks faced by the organisation in terms of internal systems, planning and reporting.
Regulatory and Policy Risks are risks on account of inadequate compliance of regulations, contractual obligations and intellectual property violations, leading to litigation and loss of reputation.
Reputational Risks include a range of events that creates a mismatch between stakeholders expectations and their perceptions of the Companys performance around those expectations.
For more details on key risks and their mitigation plans, please refer to page no. 28 of this Integrated Annual Report.
Cautionary Statement
Statements in the Management Discussion & Analysis describing the objectives, projections, estimates and expectations of the Company, its direct and indirect subsidiaries and its associates, may be ‘forward-looking statements within the meaning of applicable laws and regulations. Actual results might differ substantially or materially from those expressed or implied. Important factors that could make a difference to the Companys operations include, among others, economic conditions affecting demand/supply, price conditions in the domestic and overseas markets in which the Company operates, changes in the Government regulations, tax laws and other statutes and incidental factors.
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