Tata Steel , one of India's leading steel manufacturers, has announced its financial results for the first quarter of fiscal year 2026, demonstrating resilience in the face of global economic headwinds. The company reported a consolidated EBITDA of ₹7,480.00 crores for the quarter ended June 30, 2025, marking a significant improvement both quarter-on-quarter and year-on-year.

Financial Highlights

• Consolidated revenues stood at ₹53,178.00 crores for Q1 FY26
• EBITDA margin improved to around 14%, with EBITDA per ton reaching ₹10,503.00
• Net profit for the period was ₹2,007.00 crores, showing a substantial increase from the previous quarter

Operational Performance

Tata Steel India, the company's domestic operations, delivered a strong performance with revenues of ₹31,137.00 crores and an EBITDA of ₹7,486.00 crores. The EBITDA per ton for Indian operations improved by ₹2,510.00 to reach ₹15,760.00 per ton compared to the previous quarter.

However, production and deliveries were affected by maintenance shutdowns:

The company expects production and deliveries to normalize in the coming quarters.

European Operations

Tata Steel's European operations showed signs of improvement:

• UK operations: EBITDA loss narrowed to £41.00 million from £80.00 million in the previous quarter
• Netherlands operations: EBITDA improved to €64.00 million from €14.00 million in Q4 FY25

Strategic Initiatives

CEO T V Narendran highlighted several strategic moves:

1. Expansion at Kalinganagar: The new 5 MTPA blast furnace is ramping up well, enhancing production capabilities.
2. Continuous Galvanising Line: Successfully commissioned one of two lines in the 2.2 MTPA CRM complex.
3. Decarbonization efforts: Groundbreaking ceremony held for the UK's largest low-carbon steelmaking facility at Port Talbot.
4. Cost optimization: The company's cost transformation program delivered savings of around ₹2,900.00 crores during the quarter.

Financial Position

Koushik Chatterjee, Executive Director and CFO, reported:

• Net debt stood at ₹84,835.00 crores as of June 30, 2025
• Strong liquidity position with ₹43,578.00 crores, including cash and cash equivalents of ₹14,118.00 crores

Future Outlook

Tata Steel remains committed to its growth strategy in India, having spent ₹3,829.00 crores on capital expenditure during the quarter. The company expects India volumes to be sequentially higher in the next quarter, supported by the completion of blast furnace relining in Jamshedpur and the ramp-up of operations in Kalinganagar.

As Tata Steel continues to navigate global challenges, its focus on operational excellence, cost optimization, and strategic investments positions it well for sustainable growth in the coming quarters.

Tata Steel , one of India's leading steel manufacturers, has reported a robust financial performance for the first quarter, despite facing increased pressure on steel spot spreads. The company's consolidated financial results for the quarter ended June 30 reveal significant improvements in profitability and operational efficiency.

Financial Highlights

Operational Performance

Market Dynamics and Strategic Initiatives

Tata Steel reported increased pressure on steel spot spreads during July, indicating challenging market conditions affecting pricing dynamics in the steel sector. Despite these headwinds, the company has outlined an ambitious growth strategy featuring:

1. A ₹11,500.00 crore cost transformation initiative
2. Expansion plans to reach 40 million tonnes per annum (MTPA) capacity
3. A strong focus on green steel production

The company's cost transformation program has already shown promising results, delivering improvements of around ₹2,900.00 crores during the quarter.

Segment Performance

Capital Expenditure and Expansion

The company spent ₹3,829.00 crores on capital expenditure during the quarter, focusing on strategic growth initiatives:

• The new 5 MTPA blast furnace at Kalinganagar is ramping up well.
• Successfully commissioned one of the two Continuous Galvanising lines in the 2.2 MTPA CRM complex.
• Construction is underway for the Electric Arc Furnace (EAF) in Ludhiana.

Decarbonization Efforts

Tata Steel continues to make strides in its commitment to sustainability:

• In the UK, a groundbreaking ceremony on July 14 marked the start of construction for the country's largest low-carbon steelmaking facility.
• Discussions are ongoing with the Netherlands government regarding support for decarbonization initiatives.

Outlook

TV Narendran, Chief Executive Officer & Managing Director, commented on the results: "Tata Steel has demonstrated robust profitability across geographies despite volatile global macro conditions and heightened uncertainty. The strong improvement in our Q1 performance on QoQ as well as YoY basis was driven by an increase in our net steel realisations and the planned cost-take outs."

Koushik Chatterjee, Executive Director and Chief Financial Officer, added: "Tata Steel has delivered resilient performance and sequentially improved margins by around 200 bps despite challenging demand and uncertainty on trade & tariffs."

As Tata Steel continues to navigate through market challenges, its focus on cost optimization, operational improvements, and strategic growth initiatives positions the company well for future success in the evolving steel industry landscape.