Financial Performance Overview

Tata Steel reported its financial results for the quarter and half year ended September 30, 2026 (Q2 FY27).

Quarterly Performance (Consolidated):

  • Consolidated Revenues: Rs 65,436 crores
  • Consolidated EBITDA: Rs 10,665 crores
  • EBITDA Margin: 16%
  • EBITDA improved by 14% QoQ (from Rs 9,370 crores in Q1 FY27) and 17% YoY (from Rs 9,106 crores in Q2 FY26)
  • EBITDA per ton: Rs 13,462
  • Pre-exceptional PBT: Rs 5,106 crores
  • Exceptional Items: Gain of Rs 349 crores (relates to fair valuation gain of stake in TMILL, partly offset by employee separation scheme in India)
  • Reported PAT: Rs 3,700 crores
  • Production: 8.07 million tons
  • Deliveries: 7.92 million tons (up 9% QoQ)

Half-Yearly Performance (Consolidated):

  • Consolidated Revenues: Rs 1,26,231 crores
  • Consolidated EBITDA: Rs 20,035 crores
  • EBITDA Margin: 16%
  • EBITDA improved by 21% YoY

Segment-wise Performance

India Operations (including Tata Steel Standalone and Neelachal Ispat Nigam Limited on proforma basis):

Quarterly Performance:

  • Revenues: Rs 42,653 crores
  • EBITDA: Rs 10,634 crores
  • EBITDA Margin: 25%
  • EBITDA per ton: Rs 17,790
  • Crude steel production: 6.18 million tons (up 7% QoQ)
  • Deliveries: 5.98 million tons (up 16% QoQ)

Half-Yearly Performance:

  • Revenues: Rs 79,641 crores
  • EBITDA: Rs 20,541 crores
  • EBITDA Margin: 26%
  • EBITDA improved by 27% YoY

Netherlands Operations:

Quarterly Performance:

  • Revenues: €1,395 million
  • EBITDA: €72 million (improved from €4 million in Q1 FY27)
  • Liquid steel production: 1.52 million tons
  • Deliveries: 1.30 million tons

Half-Yearly Performance:

  • Revenues: €2,840 million
  • EBITDA: €76 million

UK Operations:

Quarterly Performance:

  • Revenues: £411 million
  • EBITDA: Loss of £56 million
  • Deliveries: 0.38 million tons

Half-Yearly Performance:

  • Revenues: £895 million
  • EBITDA: Loss of £83 million (narrowed by 22% YoY)

Capital Expenditure and Financial Position

  • Quarterly Capex: Rs 3,280 crores
  • Half-Yearly Capex: Rs 6,860 crores
  • Significant capex projects: 4.8 MTPA capacity expansion at Neelachal Ispat Nigam Limited, 0.7 MTPA Hot Rolled Pickling & Galvanising Line, and 300 kt Tinplate expansion
  • Net Debt: Rs 91,423 crores
  • Net Debt to EBITDA: 2.4x
  • Group Liquidity: Rs 40,076 crores (includes cash & cash equivalents of ~Rs 10,300 crores)
  • Dividend payout: Rs 4,989 crores

Management Commentary

Mr. T V Narendran, Chief Executive Officer & Managing Director:

Highlighted strong growth in deliveries and earnings despite geoeconomic uncertainty and higher raw material costs. India continued to be the cornerstone of performance with volumes growing 16% QoQ despite a seasonally softer quarter. Key achievements:

  • Automotive & Special Products vertical achieved 'best ever' Q2 volumes of ~1.1 million tons, with 26% growth in hi-end sales
  • Tata Tiscon sales reached ~2.7 million tons over last twelve months with revenues ~$1.8 billion
  • E-commerce platforms (Aashiyana and DigECA) generated Gross Merchandise Value of Rs 2,961 crores, up 50% YoY
  • Expanded presence in emerging segments: shipbuilding, data centers, and containers
  • Progress on expansion projects: 4.8 MTPA expansion at NINL entered execution phase; construction progressing on HRPGL and Tinplate expansion
  • Netherlands: Successful restart of Direct Sheet Plant supported product mix and cost profile improvements
  • UK: Market conditions influenced by elevated imports and inventory build-up

Mr. Koushik Chatterjee, Executive Director & Chief Financial Officer:

Emphasized resilient performance in volatile operating environment. Key financial highlights:

  • India business delivered EBITDA of Rs 17,790 per ton and margin of 25%
  • NINL generated EBITDA of Rs 318 crores; amalgamation with Tata Steel on track for completion during FY27
  • Netherlands EBITDA improved from €4 million in Q1 to €72 million in Q2
  • Cost savings of Rs 1,793 crores delivered; on track to achieve Rs 7,140 crores for full year
  • Focus on cost optimization, operational improvements, and working capital management to maximize cash flows

Strategic and Operational Highlights

  • Digital transformation: 950+ AI models & agents across value chain; digital platforms generated >$1 billion GMV
  • Sustainability: Progressing toward Net Zero by 2045; 78% of steel production from WEF Lighthouse sites
  • UK transition: EAF project advancing with £1.25 billion cost (£500 million UK Government funding)
  • Market leadership: Auto segment developing new products; Retail segment scaling through integrated ecosystem
  • Credit metrics improvement shown through historical data from FY22 to 1HFY27
  • CSR initiatives: >₹2,300 crores spent over last 5 years; 45 lakh+ lives impacted