Despite Poor Q4 Results, Tata Chemicals Stock Stays Bullish; What Traders Should Do Post-Dividend News?

Tata Chemicals' stock closed Friday's trading session on the NSE 0.74% higher at Rs 858.75 a share, with a market value of Rs 21.89KCr. The stock fluctuated between an intraday high of Rs 860.95 and a low of Rs 850.25 during the day. Because it is a very narrow range, the intraday range of Rs 10.70 suggests minimal volatility or consolidation for the day. In general, bullish intent is shown by the stock closing close to the upper end of the day's range.

After rising beyond the Rs 830 mark, Tata Chemicals is still showing bullish momentum, and this trend is probably going to continue even after the business released subpar Q4 results. In its Q4 results, which were released on May 7, Tata Chemicals posted a net loss of Rs 56 Crore, significantly less than the Rs 850 Crore it suffered during the same period the previous year. The stock closed the day at Rs 826.20, but it has since gained 3.94% to reach the current market price of Rs 858.75.

Tata Chemicals Dividend Record Date

"The Board of Directors had, at its meeting held on Wednesday, May 7, 2025, recommended a dividend of Rs 11 per ordinary share of Rs 10 each, subject to approval by the members of the Company at the 86th AGM. Pursuant to Regulation 42 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has fixed Thursday, June 12, 2025 as the Record Date for determining entitlement of Members to dividend for the financial year ended March 31, 2025. The dividend, if declared by the Members at the ensuing AGM, will be paid subject to deduction of tax at source, on or after Thursday, July 3, 2025 to: a) all Beneficial Owners in respect of shares held in dematerialized form as per the data as may be made available by the National Securities Depository Limited and the Central Depository Services (India) Limited as of the close of business hours on Thursday, June 12, 2025. b) all Members in respect of shares held in physical form after giving effect to valid transmission or transposition requests lodged with the Company as of the close of business hours on Thursday, June 12, 2025," said Tata Chemicals in a stock exchange filing.

On Monday, June 30, the company's 86th Annual General Meeting (or "AGM") will take place.

Tata Chemicals Q4 Results

The company's net loss for the quarter ending in March 2025 was Rs 56 Crore, a substantial drop from the Rs 850 Crore net loss it reported for the same time the previous year. The company's net sales saw a modest growth to Rs 3,509 crore from the same quarter last year, when they were Rs 3,475 crore. Tata Chemicals reported an operating EBITDA of Rs 327 Crore in Q4FY25, compared to Rs 443 Crore in Q4FY24. The company also revealed that its EBITDA margin dropped from 13.80% in the previous fiscal year to 9.3% in the current.

Due primarily to unfavorable global market circumstances, declining soda ash prices, and regional restructuring, especially in the US and the UK, FY25 saw a drop in both revenue and profitability to Rs 14,887 crore and Rs 479 crore, respectively, as compared to prior years.

Pricing pressure across all markets is the primary reason for the company's worse overall performance as compared to Q4FY24. For flat and container glass, the demand-supply balance becomes more lenient. The global demand for soda ash increased in FY25, with China leading the way with 18% and India with 4.5%. In contrast, demand declined by around 2.3% in the rest of the world.

Demand plummeted in all of these areas, namely for flat and container glass, which had an effect on Tata Chemicals' overall performance.

FY25 was a challenging year for TCL: while pricing pressure and the cost of restructuring weighed, the company undertook strategic moves that will deliver long-term benefits: strong execution in India and Kenya; structural transformation in UK, focused CAPEX recalibration in US. With equalized capacity and selective high-value growth, Tata Chemicals is poised to recover & grow in FY26 unless there are headwinds in the global macroeconomic and trade environment.

Tata Chemicals Share Price Target

"Tata Chemicals continues to show bullish momentum after breaking out above the ₹830 level. The stock is holding firm above key moving averages, and if it sustains above ₹850, it can head toward ₹880-₹900 in the near term. Strong RSI and volume support the uptrend. The ₹820 level now acts as strong support," commented Riyank Arora - Technical Analyst - Mehta Equities Limited.

Disclaimer

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