Mon Aug 18 04:20:00 UTC 2025: **Summary:**

Tata Chemicals is projected to be a profitable investment, according to brokerage firm Morgan Stanley. They have maintained a “Buy” rating with a target price of ₹1127, citing the company’s pricing bottoming out and a shift towards a balanced market. The company’s Q1FY26 results showed a 68% jump in profit and a focus on debt reduction. While revenue saw a slight year-on-year dip, there was quarter-on-quarter growth. Morgan Stanley believes Tata Chemicals is poised for recovery despite weak demand in North America and Europe.

**News Article:**

**Tata Chemicals Stock Projected to Yield Strong Returns, Says Morgan Stanley**

**Mumbai:** Investors in Tata Chemicals could be looking at significant gains, according to a recent report by brokerage firm Morgan Stanley. The firm maintains a “Buy” rating on the stock with a target price of ₹1127, based on the belief that the company’s pricing has hit its lowest point and is now moving toward a more balanced market position.

The bullish outlook follows Tata Chemicals’ impressive Q1FY26 results, which saw a 68% year-on-year surge in consolidated net profit, reaching ₹252 crore. This is a significant improvement compared to the ₹150 crore profit reported in the same quarter last year and a stark contrast to the ₹56 crore loss in the previous quarter (Q4FY25).

While revenue slightly decreased by 2% year-on-year to ₹3,719 crore, the company saw a 6% increase compared to the previous quarter. The revenue dip was primarily attributed to the closure of its Lostock plant in the UK.

A key factor contributing to the positive outlook is Tata Chemicals’ focus on deleveraging and reducing debt. This strategy, highlighted during recent roadshows in Singapore and Hong Kong, has resonated well with investors.

Morgan Stanley acknowledges weak demand trends in North America and Europe but believes Tata Chemicals is finding balance in ex-China markets. The brokerage anticipates a pricing recovery for the company, which operates in Basic Chemistry Products (soda ash, sodium bicarbonate) and Specialty Products (agrochemicals, seeds, prebiotics).

Tata Chemicals is a global leader in soda ash and sodium bicarbonate production, with operations in over 40 countries.

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