Tata Steel Q1 EBITDA Rises 25% YoY to Rs 9,370 Crores

Financial Performance Overview

Tata Steel reported its financial results for the quarter ended June 30, 2026 (Q1 FY27). Consolidated Revenues were Rs 60,794 crores and Consolidated EBITDA was Rs 9,370 crores. This represents a 25% year-on-year (YoY) improvement in EBITDA from Rs 7,480 crores in Q1 FY26. Consolidated EBITDA per ton improved to Rs 12,898 per ton from Rs 10,503 per ton in Q1 FY26. Pre-exceptional Profit Before Tax (PBT) was Rs 4,183 crores. Reported Profit After Tax (PAT) was Rs 2,385 crores.

Volume Metrics

Consolidated crude steel production was 7.69 million tons for the quarter. Consolidated deliveries were 7.27 million tons. Production and deliveries were affected by maintenance shutdowns in Meramandali and Kalinganagar in India, and by the closure of the Direct Sheet Plant in the Netherlands. Production and deliveries are expected to normalise in the coming quarters.

Segment-Wise Performance

India Operations (Includes Tata Steel Standalone and Neelachal Ispat Nigam Limited on a proforma basis)

Revenues for the India operations were Rs 36,989 crores. EBITDA was Rs 9,908 crores, translating to a robust EBITDA margin of 27%. India EBITDA per ton improved significantly to Rs 19,162 per ton, up from Rs 15,907 per ton in the previous quarter (Q4 FY26). Crude steel production was 5.76 million tons and deliveries were 5.17 million tons. Domestic deliveries grew 11% YoY to 4.85 million tons. Net steel realisations improved by Rs 5,991 per ton quarter-on-quarter (QoQ).

Neelachal Ispat Nigam Limited (NINL) generated EBITDA of Rs 498 crores, representing a margin of 29%.

Netherlands Operations

Revenues were €1,445 million (approximately Rs 15,803 crores). EBITDA was €4 million (approximately Rs 39 crores). Liquid steel production was 1.55 million tons and deliveries were 1.40 million tons. Operations were affected by the temporary shutdown of the Direct Sheet Plant. The local environment authority has permitted trial runs ahead of a planned full restart.

UK Operations

Revenues were £484 million (approximately Rs 6,115 crores). The EBITDA loss narrowed to £27 million (approximately Rs -341 crores) from a loss of £48 million (approximately Rs -591 crores) in the previous quarter (Q4 FY26). This improvement was achieved despite operational disruptions from a pickle line fire.

Cost Trends

Consolidated Raw Material cost was Rs 25,368 crores, increased from Rs 24,218 crores in Q4 FY26 due to a rise in coking coal consumption cost in India and the Netherlands. Employee Benefits Expenses were Rs 7,226 crores. Other Expenses were Rs 21,350 crores, up due to higher royalty and West Asia crisis-induced rises in power & fuel costs. The Change in Inventories was an expense of Rs (2,414) crores, driven by inventory build-up in India and the Netherlands versus a drawdown in the previous quarter.

Cash Flow, Debt, and Liquidity

The company spent Rs 3,579 crores on capital expenditure during the quarter. Working capital was impacted by inventory build due to operational and supply chain disruptions, and an increase in prices. Net Debt stood at Rs 84,173 crores. The Net Debt to EBITDA ratio was 2.3x, which is below the company's stated through-cycle range of 2.5x - 3.0x. Group liquidity remains strong at Rs 45,950 crores, which includes Cash & Cash Equivalents of Rs 13,221 crores.

Capital Expenditure and Expansion

The Board approved a core project for steelmaking capacity expansion by 4.8 MTPA at Neelachal Ispat Nigam Limited (NINL). The estimated capital expenditure for this project is Rs 33,873 crores. This expansion will increase NINL's total capacity to 6.2 MTPA and is focused on expanding Tata Steel's long products portfolio, particularly in the retail space. The project is at an advanced stage of readiness after completion of engineering.

Other ongoing projects include the ramp-up of a 0.75 MTPA Electric Arc Furnace (EAF) in Ludhiana and construction of a 0.7 MTPA Hot Rolled Pickling & Galvanising Line, along with Phase 1 expansion of Tinplate capacity from 0.4 to 0.7 MTPA.

Management Commentary

Mr. T V Narendran, Chief Executive Officer & Managing Director, cited a complex global operating environment with headwinds from developments in West Asia impacting supply chains and input costs. He highlighted that India was the backbone of performance, with the Automotive & Special Products segment delivering its 'best ever' Q1 performance, driven by 21% YoY growth in hi-end sales. Branded products like Tata Tiscon and Tata Steelium grew more than 30% YoY. E-commerce platforms Aashiyana and DigECA generated a Gross Merchandise Value (GMV) of around Rs 2,200 crores, up 61% YoY. The company also strengthened its presence in emerging segments like shipbuilding, data centers, and containers.

In the UK, recently implemented safeguard measures are expected to provide a more supportive market environment. In the Netherlands, the company is engaging with local authorities for the safe restart of the Direct Sheet Plant.

Mr. Koushik Chatterjee, Executive Director & Chief Financial Officer, emphasized the strong EBITDA growth and the significant QoQ improvement in India EBITDA per ton. He noted the robust performance of NINL and the narrowing of losses in the UK. He reiterated the focus on cost optimisation and working capital efficiency to maximise cash flows and confirmed the company's strong liquidity position and comfortable leverage ratio.

Other Strategic and Operational Highlights

The presentation detailed a multi-pronged strategy focusing on leadership in chosen segments like Automotive, Retail, and Engineering. Decarbonisation initiatives are underway, including the commissioning of a 0.75 MTPA EAF and pursuing breakthrough technologies. Digital transformation efforts have generated a business impact of over Rs 10,000 crores. The company also highlighted its commitment to safety, community development, and sustainability, including its Net Zero by 2045 goal.

Key Financial Data Table

| Production (mn ton) | 5.76 | 6.22 | 5.23 | 7.69 | 8.23 | 7.33 |

| Deliveries (mn ton) | 5.17 | 6.19 | 4.75 | 7.27 | 8.72 | 7.12 |

| Turnover | 36,989 | 38,654 | 31,137 | 60,794 | 63,270 | 53,178 |

| EBITDA | 9,908 | 9,841 | 7,486 | 9,370 | 9,953 | 7,480 |

| EBITDA per ton (Rs. per ton) | 19,162 | 15,907 | 15,760 | 12,898 | 11,410 | 10,503 |

| PBT before exceptional items | 6,354 | 6,633 | 4,748 | 4,183 | 5,150 | 3,199 |

| Exceptional Items (gain)/loss | 292 | 217 | 219 | 345 | 340 | 132 |

| Reported Profit after Tax | 4,668 | 4,640 | 3,454 | 2,385 | 2,965 | 2,007 |