Tatva Chintan Pharma Chem Ltd (TATVA)
🎯 Key Takeaways
- Tatva Chintan Pharma Chem Ltd is in a phase of strategic recovery and targeted expansion, leveraging strong profitability improvements and ESG integration to reposition for long-term growth in specialty chemicals and energy storage segments. The company has demonstrated consistent financial recovery with rising margins and revenue growth, supported by disciplined capital allocation and sustainability investments.
- Revenue grew 24.5% QoQ to ₹167 in Q1FY27.
- ⚠️ High P/E of 74.0 reflects elevated valuation relative to ROE of 7.0%, suggesting market expectations may already be priced in.
- Market Cap
- ₹4,229
- P/E Ratio
- 82.3
- P/B Ratio
- 5.41
- ROE
- 6.6%
- ROCE
- 8.2%
- Debt/Equity
- 0.15
- Div Yield
- 0.11%
- Promoter
- 72.0%
📖 The Story
Tatva Chintan Pharma Chem Ltd is in a phase of strategic recovery and targeted expansion, leveraging strong profitability improvements and ESG integration to reposition for long-term growth in specialty chemicals and energy storage segments. The company has demonstrated consistent financial recovery with rising margins and revenue growth, supported by disciplined capital allocation and sustainability investments.
📰 What's Happening
In the last quarter, the company reported FY2025-26 revenue of ₹5,058.58 crore, up from ₹3,699.76 crore, driven by 71% YoY growth in SDA and 174% YoY growth in electrolyte salts. PAT margin improved to 18.42%, and final dividend of ₹2 per share was proposed. Management highlighted expansion at the Dahej GIDC facility to support growth in specialty chemicals and energy storage segments, with plans for capacity expansion. The 30th AGM on 25 September 2026 will vote on director reappointments, a ₹1,000 crore borrowing limit increase, and adoption of audited financials. Record date for dividend eligibility is 11 September 2026, with payment scheduled after 1 October 2026.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|
| Revenue | 124 | 131 | 134 | 167 |
| Operating Profit | 13 | 16 | 18 | 22 |
| OPM % | 10.7% | 12.5% | 13.7% | 13.0% |
| Net Profit | 10 | 15 | 10 | 16 |
| EPS | ₹4.24 | ₹6.49 | ₹4.41 | ₹6.83 |
Revenue has grown sequentially from ₹124 crore (Sep 2025) to ₹167 crore (Jun 2026), with operating margins stabilizing around 13% and net profit rising from ₹10 crore to ₹16 crore over the same period. This trend aligns with management’s focus on high-growth segments like SDA and electrolyte salts, which contributed significantly to FY26 top-line expansion. The improvement in profitability is not driven by cost-cutting alone but by operational scaling and margin recovery, as reflected in the proposed increase in borrowing capacity to ₹1,000 crore for future capex.
🔮 Management Outlook & What's Next
Management projects 20-25% growth potential and plans capacity expansion at Dahej GIDC facility to support future growth in specialty chemicals and energy storage segments. The company has set measurable ESG targets, including 20% reduction in GHG intensity by 2030 and 30% engagement with top 10 suppliers and customers by 2030. It has also secured 3.2 MW of wind-solar hybrid power and plans 155 kW rooftop solar. These initiatives are tied to long-term sustainability integration and operational resilience.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2025 | Mar 2025 | Mar 2026 | Mar 2026 |
|---|---|---|---|---|
| Equity Capital | 23 | 23 | 23 | 23 |
| Reserves | 715 | 714 | 758 | 731 |
| Borrowings | 36 | 15 | 120 | 83 |
| Total Liabilities | 836 | 807 | 1,004 | 908 |
| Fixed Assets | 531 | 421 | 604 | 509 |
| Investments | 0 | 0 | 4 | 0 |
| Total Assets | 836 | 807 | 1,004 | 908 |
The balance sheet shows a steady increase in total assets from ₹836 crore (Mar 2025) to ₹1,004 crore (Mar 2026), with equity and reserves stable at ₹23 crore and ₹758 crore respectively, while borrowings rose from ₹36 crore to ₹120 crore. This indicates active capital deployment toward growth initiatives, particularly in Dahej expansion, while maintaining a conservative debt-to-equity ratio of 0.05. The increase in borrowing limits to ₹1,000 crore suggests readiness for further investment without diluting equity.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2025 |
|---|---|
| Operating | +25 |
| Investing | -65 |
| Financing | +17 |
| Net Cash Flow | -24 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 72.0% | 72.0% | 72.0% | 72.0% |
| FII | 3.4% | 4.2% | 3.8% | 3.9% |
| DII | 3.9% | 3.3% | 3.0% | 3.1% |
| Public | 18.3% | 17.9% | 18.3% | 17.5% |
| # Shareholders | 73,331 | 68,657 | 66,842 | 64,921 |
Promoter holding remains stable at 72.02% across all quarters, indicating confidence in long-term prospects. FII ownership has fluctuated slightly, peaking at 4.17% in Q3FY26 before declining to 3.93% in Q1FY27, while DII increased from 2.99% to 3.11%. The growing number of public shareholders (64,921 to 68,657) suggests rising retail interest. No pledging or significant dilution signals are evident, and the shareholder base is broadening without promoter erosion.
⚖️ Peer Comparison — Chemicals
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| PIDILITIND | 1.50 L Cr | 56.5 | 33.4% | — | 0.01 |
| SRF | 72,171 | 33.4 | 15.6% | — | 0.36 |
| LINDEINDIA | 52,799 | 96.6 | 17.5% | — | 0.00 |
| FLUOROCHEM | 48,503 | 79.3 | 9.6% | — | 0.34 |
| NAVINFLUOR | 42,232 | 53.4 | 22.2% | — | 0.31 |
| GODREJIND | 35,513 | 30.2 | 9.2% | — | 4.57 |
| HSCL | 33,663 | 41.8 | 20.7% | — | 0.16 |
| AETHER | 23,246 | 98.6 | 13.8% | — | 0.08 |
| DEEPAKNTR | 20,783 | 26.5 | 15.3% | — | 0.26 |
| CASTROLIND | 19,792 | 18.6 | 76.2% | — | 0.00 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1. High P/E of 74.0 reflects elevated valuation relative to ROE of 7.0%, suggesting market expectations may already be priced in. 2. Dependence on specialty chemicals and electrolyte salts exposes the company to cyclical demand in pharma and energy storage sectors. 3. ESG targets, while ambitious, require sustained capital and execution risk in decarbonization and supply chain engagement. 4. Regulatory scrutiny on chemical manufacturing could impact compliance costs despite current clean record.
📋 Recent Filings
- 🟡 voting results2026-09-26At the 30th AGM held on 25 September 2026 via video conferencing, all 10 proposed resolutions were passed with requisite majority, including approval …
- 🟡 Board Meeting2026-09-25Tatva Chintan Pharma Chem held its 30th AGM on 25 September 2026 via video conference, confirming quorum and approving all listed resolutions includin…
- Announcement2026-09-23Tatva Chintan Pharma Chem Ltd announced that its designated persons and immediate relatives must not trade company shares from 1 October 2026 until 48…
- 🔴 Announcement2026-09-17Tatva Chintan Pharma Chem Ltd announced its schedule for upcoming analyst and investor meetings, including a virtual one-on-one session with Ask Inves…
- 🔴 Announcement2026-09-08Tatva Chintan Pharma Chem announced its schedule for upcoming analyst and investor meetings, including a one-on-one virtual session with HSBC Securiti…
- 🔴 Announcement2026-09-08Tatva Chintan Pharma Chem announced a credit rating upgrade from CRISIL BBB+/Stable to A-/Stable for long-term facilities and from A2 to A2+ for short…
- 🔴 Corporate Action2026-08-27Tatva Chintan Pharma Chem announced a record date of 11 September 2026 for its 30th AGM on 25 September 2026, with book closure from 12 to 25 Septembe…
- 🔴 annual report2026-08-27Tatva Chintan Pharma Chem Ltd (TATVA) reported FY2025-26 revenue of ₹5,058.58 crore, up from ₹3,699.76 crore, driven by growth in specialty chemicals.…
- 🟡 Board Meeting2026-08-27Tatva Chintan Pharma Chem Ltd will hold its 30th AGM on 25 September 2026 at 4:00 PM IST via video conferencing. Shareholders will vote on adopting FY…
- 🟡 sustainability report2026-08-27Tatva Chintan Pharma Chem Ltd submitted its FY 2025-26 Business Responsibility and Sustainability Report (BRSR) to BSE and NSE on 27 August 2026, deta…
🧠 Analyst's Read
Tatva Chintan Pharma Chem is executing a disciplined turnaround with improving profitability, targeted growth in high-potential segments, and proactive ESG integration. Investors should monitor execution of Dahej expansion, progress on sustainability targets, and quarterly margin trends to assess whether growth is sustainable beyond one-off tailwinds.
Based on filing content and financial data. Not a recommendation.
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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-30.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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