Tata Group Declares Rs 11 Dividend, Plans Rs 200 Cr Fundraise—Is It Ready For A Breakout After Weak Q4?

Tata Chemicals Limited, a major supplier to the glass, detergent, industrial, and chemical industries, is an arm of the roughly US$165 billion Tata Group. Rallis India Limited, a subsidiary of the corporation, gives it a dominant position in the crop protection industry. In Bangalore and Pune, Tata Chemicals maintains top-notch research and development facilities. Compared to the previous closing of Rs 807.50, Tata Chemicals' shares began lower on the BSE on Friday at Rs 772.30 per share after the company's Q4 results didn't meet market expectations.

Tata Chemicals Dividend

"The Board has recommended a dividend of Rs 11 per share i.e. 110% for the financial year 2024-25. The dividend, if approved by the members at the ensuing 86th Annual General Meeting (AGM) of the Company, will be paid (subject to deduction of tax at source) within five days of the AGM," said the company in a stock exchange filing.

Tata Chemicals Fundraising Proposal

"The Board has approved the proposal for raising of funds by way of a term loan(s) and/or through issuance of Non-Convertible Debentures (NCDs) on private placement basis, for an amount up to Rs 200 crore. The Board also authorized an internal committee, to take all applicable actions in respect of finalization of the terms of raising funds and/or issuance and allotment of NCDs," Tata Chemicals informed the stock exchanges.

Tata Chemicals Q4 Results

In the quarter that ended in March 2025, the company had a net loss of Rs 56 Crore, which is considerably lower than the net loss of Rs 850 Crore it recorded during the same period the year before. In comparison to the year-ago quarter, when it was Rs 3,475 crore, the company's net sales reported a modest 1% YoY increase to Rs 3,509 crore.

As opposed to Rs 443 Crore in Q4FY24, Tata Chemicals reported an operating EBITDA of Rs 327 Crore in Q4FY25. Additionally, the business disclosed that the EBITDA margin decreased to 9.3% from 13.80% in the prior fiscal year. The company's gross debt increased by Rs 1,509 crore to Rs 7,072 crore as on March 31, 2025, including lease liabilities of Rs 768 crore.

The net profit for the entire year fell by 12.31% to Rs 235.00 crore in March 2025 compared to Rs 268.00 crore in March 2024. Compared to Rs 15421.00 crore in FY24, sales fell 3.46% to Rs 14887.00 crore in the year ending March 2025.

Tata Chemicals Share Price Target

"Tata Chemicals is in a recovery phase after forming a strong base around ₹770. The stock is making higher highs and has crossed its 50-day and 200-day averages, which is a bullish signal. Support lies at ₹790, and resistance is at ₹840. A move above ₹840 could take it to ₹870-880 levels. The RSI near 60 supports bullish continuation. The trend looks positive, and buying on dips near ₹800 or on breakout above ₹840 is a good strategy," commented Riyank Arora - Technical Analyst - Mehta Equities Limited.

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