THEBUSINESSBYTES BUREAU

MUMBAI, NOVEMBER 7, 2026

Tata Steel on Saturday reported a nearly 20 per cent year-on-year increase in its India profit after tax (PAT) to Rs 5,055 crore for the September quarter of FY27, driven by higher sales volumes and resilient operational performance.

The company's India revenue grew 23 per cent year-on-year to Rs 42,653 crore during the July-September quarter, while earnings before interest, taxes, depreciation and amortisation (EBITDA) stood at Rs 10,634 crore, translating into a healthy margin of 25 per cent.

India crude steel production rose 7 per cent sequentially to 6.18 million tonnes, while deliveries surged 16 per cent quarter-on-quarter to 5.98 million tonnes, reflecting improved demand and strong customer engagement.

On a consolidated basis, Tata Steel reported revenue of Rs 65,436 crore for the quarter under review, while EBITDA increased 14 per cent sequentially and 17 per cent year-on-year to Rs 10,665 crore, with a margin of around 16 per cent.

For the first half of FY27, consolidated revenue stood at Rs 1,26,231 crore and EBITDA at Rs 20,035 crore, registering a 21 per cent year-on-year improvement despite a challenging operating environment.

India remained the key growth driver, contributing revenue of Rs 79,641 crore and EBITDA of Rs 20,541 crore during the first half, with an EBITDA margin of 26 per cent. Its EBITDA grew 27 per cent year-on-year.

 

In Europe, Tata Steel Netherlands reported quarterly revenue of 1,395 million euros and EBITDA of 72 million euros, supported by the restart of its Direct Sheet Plant in early August. Liquid steel production stood at 1.52 million tonnes, while deliveries were 1.30 million tonnes.

The UK business recorded revenue of 411 million pounds, with deliveries of 0.38 million tonnes during the quarter. For the first half, UK revenue stood at 895 million pounds, while its EBITDA loss narrowed 22 per cent year-on-year to 83 million pounds.

Commenting on the performance, Tata Steel CEO and Managing Director T V Narendran said the company delivered strong growth in deliveries and earnings, supported by a resilient supply chain and close customer engagement, despite geopolitical and economic uncertainties and higher raw material costs.

"Deliveries grew 9 per cent quarter-on-quarter to around 7.92 million tonnes and EBITDA was up 14 per cent QoQ to around Rs 10,665 crore," Narendran said.

He highlighted India's continued role as the cornerstone of the company's performance, with volumes growing 16 per cent sequentially despite the seasonally softer quarter.

The company's automotive and special products business achieved its best-ever second-quarter volumes of around 1.1 million tonnes, supported by 26 per cent growth in high-end sales.

Tata Tiscon sales reached around 2.7 million tonnes over the last 12 months, generating revenue of approximately USD 1.8 billion. Its e-commerce platforms, Aashiyana and DigECA, recorded a gross merchandise value of Rs 2,961 crore, registering 50 per cent year-on-year growth.

Narendran said the company was also expanding its presence in emerging segments such as shipbuilding, data centres and containers, while making steady progress on its volume and value growth strategy in India.

The 4.8 million tonnes per annum (MTPA) capacity expansion at Neelachal Ispat Nigam Ltd (NINL) has entered the execution phase. Construction is also progressing on the 0.7 MTPA Hot Rolled Pickling and Galvanising Line and the 300,000-tonne tinplate expansion project.

In the Netherlands, the successful restart of the Direct Sheet Plant and its return to rated capacity have supported improvements in product mix and cost structure. In the UK, however, market conditions continue to be affected by elevated imports and inventory accumulation across parts of the value chain.

Tata Steel Executive Director and Chief Financial Officer Koushik Chatterjee said higher volumes in India and operational normalisation in the Netherlands helped offset elevated input costs.

He said consolidated EBITDA remained above Rs 13,000 per tonne during the quarter, with the India business delivering EBITDA of Rs 17,790 per tonne and a margin of 25 per cent.

Neelachal Ispat Nigam Ltd generated EBITDA of Rs 318 crore during the quarter, while its amalgamation with Tata Steel remains on track for completion during the current financial year, subject to final approval from the National Company Law Tribunal (NCLT).

In the Netherlands, EBITDA improved significantly to 72 million euros in the September quarter from 4 million euros in the preceding quarter, aided by favourable pricing and the restart of the Direct Sheet Plant.

Chatterjee said the UK business continued to face pressure from subdued demand and elevated inventories across the supply chain, while construction activities for the proposed electric arc furnace (EAF) project were gathering pace.

The company achieved savings of around Rs 1,793 crore during the first half and is targeting total savings of Rs 7,140 crore for the full financial year.

Tata Steel incurred capital expenditure of Rs 3,280 crore during the September quarter and Rs 6,860 crore in the first half. Its dividend payout during the half year stood at Rs 4,989 crore.

At the end of the reporting period, consolidated net debt stood at Rs 91,423 crore, with the net debt-to-EBITDA ratio at 2.4 times. The company's group liquidity remained strong at Rs 40,076 crore, including cash and cash equivalents of approximately Rs 10,300 crore.

Chatterjee said the company's focus would remain on cost optimisation, operational improvements and working capital management to maximise cash flows.

The company is also working towards strengthening its financial position while pursuing strategic capacity expansion and improving operational efficiencies across its domestic and international businesses.