Tata Steel Limited reported a strong financial performance for FY26, with Profit After Tax (PAT) rising to ₹10,886 crore from ₹3,174 crore in the previous year. The company’s revenue from operations increased to ₹2,32,140 crore, while EBITDA improved by 320 basis points year-on-year to ₹34,848 crore. Deliveries grew to 31.97 million tons. These results were presented at the company’s 119th Annual General Meeting held on July 2, 2026, via video conferencing.

Shareholders approved a dividend of ₹4 per share for FY26, up from ₹3.6 per share in the previous year. The record date for determining eligibility was June 25, 2026. The meeting also ratified the appointment of cost auditors and approved three material related party transactions totaling ₹27,475 crore with group entities, including Tata Capital Limited and Tata Steel UK Limited.

Financial Highlights

The company achieved significant growth across key metrics in FY26, driven by operational efficiency and cost transformation programs.

Strategic Initiatives

Tata Steel’s cost transformation program delivered savings of approximately ₹10,868 crore in FY26, achieving 95% compliance against its target. The company invested approximately ₹14,026 crore in capital expenditure during the year. Additionally, digital platforms achieved sales of US$1 billion in FY26. The company has targeted a further cost reduction of approximately ₹7,140 crore in FY2027.

The tax department has filed an appeal against an Adjudication Order that dropped a penalty of ₹368.72 crore on Tata Steel Limited . The appeal, filed on June 16, 2026, by the Assistant Commissioner, Division-I, CGST & Central Excise, Jamshedpur, challenges the Commissioner's decision dated December 18, 2025, which had reduced the penalty amount initially proposed in a show cause notice. The company stated it will contest the appeal before the Appellate Authority within statutory timelines, emphasizing that the matter is currently sub judice before the Hon'ble High Court of Jharkhand and there is no impact on its financial or operational activities.

Background of the dispute

The dispute originated from a show cause cum demand notice dated June 27, 2025, from the Office of the Commissioner (Audit), Central Tax, Ranchi. The notice proposed the disallowance of Input Tax Credit for the period FY2018-19 through FY2022-23, demanding a total GST amount of ₹1007,54,83,342 along with interest and penalty. Tata Steel had already paid ₹514,19,36,211 in the normal course of business, resulting in an alleged exposure of ₹493,35,47,131.

Adjudication Order details

The Adjudication Order passed on December 18, 2025, directed the payment of tax amounting to ₹493,35,47,131 and a penalty of ₹638,82,62,185. However, the Adjudicating Authority dropped the penalty amount of ₹368,72,21,158 that was originally proposed in the show cause notice. Following this, Tata Steel filed a Writ Petition before the Hon'ble High Court of Jharkhand on March 11, 2026, which granted a stay on all further proceedings.

Financial implications

The company maintains that it has a good case on merit and will contest the appeal. The disclosure was made in compliance with Regulations 30 and 51 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.