Tata Steel India Business Hits Rs 5,055 Crore Profit in Q2FY27
Tata Steel reports a net profit of Rs 5,055 crore from India operations in Q2FY27, driven by strong domestic volume growth.
Steel giant Tata Steel has announced a robust financial performance for the July–September quarter of the 2026-27 financial year (Q2FY27), with its Indian operations recording a profit after tax of Rs 5,055 crore. This growth comes despite the challenges of seasonal weakness and a volatile global market.
Domestic Dominance Drives Growth
The company's performance in India remains the primary engine of its success. Domestic revenues reached Rs 42,653 crore, while the EBITDA for the Indian business stood at Rs 10,634 crore, representing a strong operating margin of 25 per cent.
Production and delivery figures showed a significant uptick:
- Crude Steel Production: Rose by 7 per cent quarter-on-quarter to 6.18 million tons.
- Domestic Deliveries: Jumped 16 per cent quarter-on-quarter to 5.98 million tons.
T V Narendran, CEO and Managing Director of Tata Steel, highlighted that the company's resilient supply chain and customer engagement helped maintain growth despite geoeconomic uncertainties and rising raw material costs. He specifically noted that the Automotive & Special Products vertical achieved "best ever" second-quarter volumes of approximately 1.1 million tons, fueled by a 26 per cent surge in high-end sales.
Consolidated Financial Highlights
On a consolidated level, the steelmaker reported revenues of Rs 65,436 crore for the quarter. The consolidated EBITDA reached Rs 10,665 crore, marking a 14 per cent increase over the previous quarter and a 17 per cent increase year-on-year. The overall consolidated net profit for the period was Rs 3,700 crore.
For the first half of the financial year, the company's consolidated revenues stood at Rs 1,26,231 crore, with an EBITDA of Rs 20,035 crore, reflecting a 21 per cent rise compared to the previous year.
Global Operations: A Mixed Bag
While India flourished, the international landscape presented varied results:
The Netherlands
Operations in the Netherlands saw revenues of 1,395 million euros and an EBITDA of 72 million euros. This recovery was supported by the restart of the Direct Sheet Plant in August.
United Kingdom
The UK business faced a tougher environment, reporting revenues of 411 million pounds but suffering an EBITDA loss of 56 million pounds. This downturn was attributed to subdued demand, high inventory levels, and an increase in imports.
Financial Health and Future Outlook
Koushik Chatterjee, Executive Director and CFO, stated that the strength of the Indian business helped offset elevated input costs. He also mentioned that Neelachal Ispat Nigam Limited (NINL) generated an EBITDA of Rs 318 crores, and the amalgamation of NINL with Tata Steel is expected to be completed within the financial year, pending final NCLT approval.
Regarding capital and debt:
- Capital Expenditure: The company spent Rs 3,280 crore this quarter, bringing the half-year total to Rs 6,860 crore.
- Debt and Liquidity: Net debt stood at Rs 91,423 crore, while the company maintained liquidity of Rs 40,076 crore.