Tata Steel , one of India's leading steel manufacturers, has reported impressive growth in its production and delivery volumes for the financial year 2025, with notable improvements in the fourth quarter (Q4) of FY25.

Q4 FY25 Performance Highlights

• Tata Steel's India deliveries increased to 5.60 million tonnes (MT) in Q4 FY25, up from 5.29 MT in Q3.
• Q4 crude steel production slightly dipped to 5.51 MT from 5.69 MT in Q3.

Annual Performance FY25

• Annual crude steel production grew 5% to 21.80 MT.
• Domestic deliveries for the year rose 4.4% to 19.70 MT.

E-commerce Platform Success

• Tata Steel Aashiyana, the company's e-commerce platform for Individual Home Builders, saw revenues surge 60% year-on-year to Rs 3,550.00 crore.

Production Milestones

Tata Steel India achieved a significant milestone in FY2025, with crude steel production reaching 21.80 million tons, marking a 5% year-over-year increase. This growth can be attributed to two key factors:

1. The commissioning of India's largest blast furnace at Kalinganagar
2. Higher steel production at Neelachal Ispat Nigam Limited

It's worth noting that the fourth quarter (Q4) of FY2025 saw a slight dip in production to 5.51 million tons due to ongoing relining work at the "G" blast furnace in Jamshedpur.

Delivery Volumes

Tata Steel's delivery volumes in India have shown remarkable growth, surpassing the previous best recorded in FY2024. Key highlights include:

• Total domestic deliveries increased by 4.4% year-over-year, reaching 19.70 million tons
• Q4 FY2025 deliveries rose by 6% quarter-on-quarter to 5.60 million tons, setting a new record
• Domestic deliveries in Q4 grew by approximately 9% quarter-on-quarter

Segment-wise Performance

Tata Steel's various business verticals demonstrated strong performance in FY2025:

Automotive & Special Products (A&SP)

• Deliveries remained stable at around 3.10 million tons
• In Q4 FY2025, A&SP volumes increased by 10% quarter-on-quarter
• Tata Steel became the first Indian mill to localize high-strength grade hot-rolled CP780 for automotive applications

Branded Products & Retail (BPR)

• Deliveries increased by 7% year-over-year to approximately 7.00 million tons
• Tata Tiscon (Retail brand) achieved record annual deliveries of about 2.40 million tons
• Hot-rolled and cold-rolled brands for SMEs (Tata Astrum & Tata Steelium) registered best-ever annual deliveries of around 3.80 million tons
• BPR segment recorded its highest-ever quarterly sales in Q4 FY2025

Industrial Products & Projects (IPP)

• Deliveries remained stable at approximately 7.30 million tons
• Growth driven by value-accretive segments such as Engineering and Ready-to-use solutions
• Q4 FY2025 witnessed a 14% quarter-on-quarter growth in IPP deliveries

International Operations

Tata Steel's international operations also showed positive results:

Tata Steel Netherlands

• Liquid steel production: 6.70 million tons
• Deliveries: 6.22 million tons
• Both production and deliveries increased year-over-year due to the return to normal operating levels after the completion of blast furnace #6 reline in February 2024

Tata Steel UK

• Liquid steel production: Approximately 1.10 million tons
• Deliveries: 2.51 million tons
• Production was affected by the closure of both blast furnaces at the end of Q2 FY2025
• The company is currently servicing customers through downstream processing of purchased substrate

Conclusion

Tata Steel's FY2025 results demonstrate the company's ability to leverage India's growing steel demand and its operational efficiency. With record-breaking production and delivery volumes, particularly in Q4, Tata Steel continues to strengthen its position in the domestic and international steel markets.

Tata Steel , one of India's leading steel manufacturers, is currently grappling with a significant tax reassessment issue related to its acquisition of Bhushan Steel in 2018. The company has received an income tax order that increases its taxable amount for the fiscal year 2019, specifically concerning the resolution of Bhushan Steel under the Insolvency and Bankruptcy Code (IBC).

Background of the Acquisition

In May 2018, Tata Steel, through its wholly-owned subsidiary Bamnipal Steel Limited, acquired the erstwhile Bhushan Steel Limited (later renamed Tata Steel BSL Limited) under the IBC resolution process. As part of this acquisition, a substantial debt of ₹25,185.51 crore was waived in favor of Tata Steel BSL Limited (TSBSL).

Recent Developments

According to the latest LODR (Listing Obligations and Disclosure Requirements) filing by Tata Steel, the company received a show cause notice on March 13, 2025, from the Office of the Deputy Commissioner of Income Tax, Circle 2(3)(1), Mumbai. The notice sought additional documents regarding the waived amount for reassessing the taxable income for the Assessment Year (AY) 2019-20.

On March 31, 2025, Tata Steel received an Assessment Order from the Assessing Officer, which reassessed the company's taxable income for FY 2018-19 (AY 2019-20). The order increases the taxable amount for FY 2018-19 by the amount of debt waived during the Bhushan Steel acquisition.

Tata Steel's Response

Tata Steel has taken swift action in response to this tax reassessment:

1. On March 24, 2025, the company filed a writ petition with the Bombay High Court, challenging the authority of the Assessing Officer to conduct the reassessment.
2. The company plans to seek additional legal remedies before relevant judicial and quasi-judicial forums to contest the matter on its merits and challenge the contents of the Assessment Order.

Company's Stance

Tata Steel maintains a strong position on this matter:

• The company believes it has a robust case on merits, in addition to identifying technical infirmities in the Assessment Order.
• Tata Steel argues that under the relevant provisions of the Income Tax Act, 1961, the waiver of debt cannot be treated as taxable income for TSBSL, especially considering it was part of an acquisition under IBC proceedings.
• The management is currently studying the impact of the order and determining further courses of action.

Implications and Outlook

While the exact financial implications of this reassessment are yet to be determined, it poses a significant challenge for Tata Steel. The company's management is actively engaged in addressing this issue through legal channels, emphasizing their belief in the strength of their case.

This development highlights the complex tax implications that can arise from major corporate restructuring events, particularly those involving debt resolution under the IBC framework. As the situation unfolds, it will be closely watched by industry observers and could potentially set a precedent for similar cases in the future.

Tata Steel's ability to navigate this tax challenge will be crucial, as it may have implications for the company's financial statements and potentially impact investor sentiment in the short term.