HSBC has upgraded Tata Chemicals to a neutral rating from reduce and raised its target price to ₹825 per share following the company’s Q2FY26 results, which missed expectations due to weaker margins in its U.S. and Indian operations.
The brokerage said both geographies saw negative margin surprises, offset partially by continued improvement in the U.K. business. HSBC noted that global supply-demand dynamics remain imbalanced, weighing on near-term pricing, but added that domestic developments could drive gradual improvement in the coming quarters.
The firm believes that while Tata Chemicals’ operational recovery is yet to fully materialise, stabilising soda ash prices and improving cost efficiencies could limit downside risks. The upgrade to neutral reflects a more balanced risk-reward outlook amid a stabilising demand environment and early signs of recovery in European operations.
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