The court noted that Tata Chemicals Magadi Ltd is not obliged to pay the arrears in the absence of an open and accountable framework for determining land rates.
The company had previously disclosed this pending litigation in a letter dated August 14, 2023. As of March 31, 2025, the revised demand from the County Government stood at ₹783 crore.
Also Read: Tata Group stock surges after ‘double upgrade’ from Morgan Stanley
The contingent liability for this amount is currently reflected in the company’s books. Following the court’s ruling, the management, after taking appropriate legal advice, will decide on the accounting treatment of this liability.
First Quarter ResultsTata Chemicals reported a 68% year-on-year (YoY) jump in net profit at ₹252 crore for the first quarter ended June 2025. This is against a profit of ₹150 crore in the same quarter last fiscal. The company’s revenue from operations dipped 1.8% to ₹3,719 crore against ₹3,789 crore last year.
At the operating level, EBITDA increased 13% YoY to ₹649 crore in the first quarter of this fiscal year over ₹574 crore. The EBITDA margin expanded to 17.4% from 15.1% in Q1FY25. Net debt as on June 30, 2025, stood at ₹4,972 crore (excluding lease of ₹760 crore).
Also Read: Tata Chemicals Q4 | Firm slashes net loss to ₹56 crore, revenue flat; declares dividend of ₹11
Shares of Tata Chemicals Ltd ended at ₹893.75, down by ₹6.60, or 0.73%, on the BSE.
First Published: Oct 27, 2025 6:50 PM IS
