Tata Chemicals shares rise on winning ₹783-crore land rate dispute in Kenya

Tata Chemicals shares rose 2 per cent after a Nairobi court ruled in favour of its unit, terming the ₹783 crore land rate demand arbitrary and illegal

Shares of Tata Chemicals Ltd. rose over 2 per cent after the Court of Appeal in Nairobi ruled in favour of its subsidiary, declaring the ₹783 crore (KSh 11.84 billion) land rate demand by the County Government as arbitrary and illegal.

 

The Tata Group company's stock rose as much as 2.08 per cent during the day to ₹912 per share, the biggest intraday gain since October 16 this year. The Tata Chemicals stock pared gains to trade 1.7 per cent higher at ₹908.4 apiece, compared to a 0.43 per cent decline in Nifty 50 as of 11:08 AM. 

 

The counter has fallen 14 per cent this year, compared to a 9.5 per cent advance in the benchmark Nifty 50. Tata Chemicals has a total market capitalisation of ₹23,128.05 crore.

Tata Chemicals wins ₹783-crore land rate dispute in Kenya

Tata Chemicals on Tuesday said its subsidiary, Tata Chemicals Magadi Ltd., received a favourable ruling from the Court of Appeal, Nairobi, in a long-pending dispute with the County Government of Kajiado, Kenya, over land rate demands.

 

The appellate court, through its order dated October 24, 2025, ruled that the demand raised by the County Government was "arbitrary and illegal" and that TCML was "not obliged to pay the land revenue arrears in the absence of an open and accountable framework for determining the land rates."

 

As of March 31, 2025, the revised demand stood at ₹783 crore (Kenyan Shillings 11.84 billion). The matter was part of Tata Chemicals’ contingent liabilities disclosed in its books, the company said in a statement.

 

The company said that its management, after obtaining appropriate legal advice, will make a decision on the treatment of this contingent liability in light of the latest court judgment.  ALSO READ | Target @₹7,000: IndiGo set to fly higher as Anand Rathi initiates with Buy

JM Financial starts coverage on Tata Chemicals

Earlier this month, JM Financial initiated coverage on Tata Chemicals, citing strong growth prospects in its soda ash business and strategic operational moves. 

 

JM Financial expects growth to be primarily driven by a recovery in the soda ash business. "Tata Chemicals is set to benefit from a likely improvement in the overall soda ash demand-supply balance and price recovery," the brokerage noted, adding that new-age applications such as EV batteries and solar cell glass, along with industry-wide capacity rationalisation, will further support growth. 

 

Despite promising growth drivers, JM Financial cautioned on potential risks, including “underwhelming ramp-up of new capacities, slower-than-expected recovery in the global soda ash market, and less-than-expected improvement in margins.”