Travancore Cochin Chemicals: caustic soda margins triple, ICRA lifts rated amount
ICRA's reaffirmation reflects a marked improvement in profitability for the Kerala state PSU.
While revenues stayed broadly stable at around Rs 306 crore in FY2026 (provisional), up a modest 1.5% year-on-year, the operating profit margin expanded sharply to 6.6% from 2.1% the previous year.
The improvement was driven by firmer caustic soda realisations amid geopolitical disruptions and a multi-year rationalisation of employee expenses.
The rated amount was enhanced to Rs 83 crore from Rs 75 crore, including a newly assigned Rs 8-crore term loan.
The long-term rating remains at [ICRA]BB+ (Stable), while the short-term rating is [ICRA]A4+.
ICRA cautions that margins are likely to moderate from FY2026 levels as price realisations soften from May 2026.
Supporting the ratings are TCCL's established track record in the chloro-alkali industry, its standing as one of the largest caustic soda manufacturers in Kerala, a reputed clientele and its status as a state-level public sector undertaking.
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