Tata Steel October-December Net Profit Grows Eightfold; India Deliveries Hit Record 6.04 Million Tons

Tata Steel Limited reported a consolidated profit after tax (PAT) of ₹27.30 billion for the quarter ended December, marking an over eightfold increase from ₹2.95 billion in the same period last year.

According to the press release, the consolidated EBITDA for the quarter stood at ₹83.09 billion, marking a 39% year-on-year increase with a margin of approximately 15%. Consolidated revenues for the October–December quarter were reported at ₹570.02 billion. 

India Operations Performance
The company’s India business, comprising Tata Steel Standalone and Neelachal Ispat Nigam Limited (NINL), reported revenues of ₹357.25 billion for the quarter. EBITDA for the segment stood at ₹82.91 billion, translating to a margin of 23%. Data from the investor presentation indicated that India crude steel production rose by 12% year-on-year to 6.34 million tons. This improved production facilitated what the company termed its “best-ever quarterly” deliveries of 6.04 million tons, a 14% increase from the same period last year. 

European Operations
Performance in Europe showed divergent trends across geographies. Tata Steel Netherlands reported revenues of €1,354 million and an EBITDA of €55 million for the quarter. Liquid steel production in the Netherlands stood at 1.68 million tons, while deliveries were 1.40 million tons. 

In the UK, revenues were £468 million for the quarter, with an EBITDA loss of £63 million. Deliveries were 0.52 million tons, which the company stated were impacted by subdued demand and steady imports. 

Financial Position, Capex and Efficiency
Tata Steel reported capital expenditure of ₹32.91 billion during the third quarter and ₹103.70 billion during the first nine months of 2025-26. The company’s consolidated net debt declined by ₹52.06 billion quarter-on-quarter to ₹818.34 billion. Group liquidity remained strong at ₹440.62 billion, including cash and cash equivalents of ₹107.65 billion. The financial results included an exceptional loss item, which the Standalone financials noted included the impact of the new labour code and an employee separation scheme.

The management highlighted that its cost transformation program, covering operating KPIs, supply chain efficiencies, and procurement, delivered savings of approximately ₹30 billion for the quarter. Total savings for the nine months ended December 31, 2025, stood at ₹86 billion. The investor presentation noted a target of ₹115 billion ($1.3 billion) in savings across geographies.

Strategic Developments and Expansions
In December 2025, the Tata Steel Board affirmed a long-term growth strategy for the India business, prioritizing investments in volume growth, value-added downstream portfolios, and identified mining assets. The company announced it has consolidated its stake in the color-coated business, transitioning Tata BlueScope Steel Private Limited to Tata Steel Colors Private Limited. Additionally, the company completed the acquisition of a 50.01% stake in Thriveni Pellets Private Limited, which holds a 100% equity stake in Brahmani River Pellets Private Limited.

The Board has also granted in-principle approval for a 4.8 million tonnes per annum (MTPA) expansion at NINL to create a strategic complex for long products. Other ongoing projects include a 0.75 MTPA Electric Arc Furnace (EAF) at Ludhiana, which has commenced hot trials and is scheduled for commissioning in the first half of 2026-27. A 2.5 MTPA expansion is also underway at Tata Steel Meramandali involving a thin slab caster and rolling facility. Furthermore, the company highlighted a strategic partnership with Lloyds Metals & Energy to develop a new iron ore hub in Gadchiroli and a greenfield capacity of 6 MTPA in Maharashtra.

Management Commentary
T V Narendran, Chief Executive Officer and Managing Director, said: “Our global operating environment continues to be shaped by tariffs, geopolitical shifts and policy divergence. Steel markets were impacted by elevated finished steel exports from China, which at 119 million tons surpassed the 2015 peak. Against this backdrop, Tata Steel delivered a strong performance in this quarter, with India crude steel production rising 12% while deliveries grew faster at 14% year-on-year, surpassing the 6 million tons mark in a quarter for the first time.”

Regarding European operations, Narendran stated, “Supportive policy frameworks are vital to transition to a more sustainable operating model. While the recent progress in Europe has supported sentiment, the UK market continues to be depressed, and the quota framework needs to be revised to reflect underlying market conditions.”