Tata Steel Reports 25% Growth in Q1 FY27 EBITDA to Rs. 9,370 Crore; Board Approves Rs. 33,873 Crore NINL Expansion

Published at : Aug 31, 2026 07:31 AM (IST)

Total Views : 131

Tata Steel Reports 25% Growth in Q1 FY27 EBITDA to Rs. 9,370 Crore; Board Approves Rs. 33,873 Crore NINL Expansion

The Print Times August 6, 2026:

Tata Steel Limited reported a strong financial performance for the quarter ended June 30, 2026, with consolidated EBITDA rising 25% year-on-year despite a volatile global operating environment. The company also announced a major capacity expansion at Neelachal Ispat Nigam Limited (NINL), reinforcing its long-term strategy to strengthen its branded long products business.

For the April-June 2026 quarter, consolidated revenues stood at Rs. 60,794 crore, while consolidated EBITDA increased to Rs. 9,370 crore, registering a 25% year-on-year growth.

The company's India business remained the key earnings driver, reporting revenues of Rs. 36,989 crore and EBITDA of Rs. 9,908 crore, translating into an EBITDA margin of 27%. India EBITDA per tonne improved by Rs. 3,255 quarter-on-quarter to Rs. 19,162 per tonne.

Crude steel production in India stood at 5.76 million tonnes, while deliveries were 5.17 million tonnes during the quarter. The company said production and deliveries were affected by planned maintenance shutdowns at the Meramandali and Kalinganagar facilities, with operations expected to normalize in the coming quarters.

The Netherlands business reported revenues of Euro 1,445 million and EBITDA of Euro 4 million. Liquid steel production stood at 1.55 million tonnes, while deliveries were 1.40 million tonnes. Operations remained impacted by the temporary closure of the Direct Sheet Plant. However, the local environmental authority has permitted trial runs, which are currently underway ahead of the restart of full operations. In the United Kingdom, Tata Steel reported revenues of GBP 484 million, while EBITDA loss narrowed to GBP 27 million, reflecting improved operating performance during the quarter.

The company invested Rs. 3,579 crore in capital expenditure during the quarter. Its 0.75 million tonnes per annum Electric Arc Furnace (EAF) at Ludhiana is continuing to ramp up, while construction is progressing on the 0.7 MTPA Hot Rolled Pickling & Galvanising Line and the Phase-I expansion of Tinplate capacity from 0.4 MTPA to 0.7 MTPA.

At the end of the quarter, net debt stood at Rs. 84,173 crore, while the Net Debt-to-EBITDA ratio remained at 2.3x. The company maintained strong liquidity of Rs. 45,950 crore, including cash and cash equivalents of Rs. 13,221 crore.

A key strategic announcement during the quarter was the Board's approval of the core steelmaking capacity expansion project at Neelachal Ispat Nigam Limited (NINL). The project will increase steelmaking capacity by 4.8 million tonnes per annum at an estimated investment of Rs. 33,873 crore, expanding NINL's total capacity to 6.2 MTPA. According to the company, the expansion will strengthen Tata Steel's long products portfolio, particularly its branded retail products, where demand continues to remain strong.

Commenting on the results, Mr. T. V. Narendran, Chief Executive Officer & Managing Director, Tata Steel, said the global operating environment remained challenging due to the impact of developments in West Asia on supply chains and input costs, while overseas operations also faced operational disruptions. Despite these headwinds, Tata Steel delivered a sequential improvement in EBITDA per tonne for the third consecutive quarter. Mr. Narendran said India continued to be the backbone of Tata Steel's performance, with domestic deliveries growing 11% year-on-year to 4.85 million tonnes. He attributed the improvement to the company's agile commercial strategy and calibrated market mix, which resulted in a Rs. 5,991 per tonne quarter-on-quarter increase in net steel realisations.

The Automotive & Special Products segment delivered its best-ever first-quarter performance, driven by 21% year-on-year growth in high-end steel sales. Tata Steel's branded portfolio also recorded strong momentum, with Tata Tiscon and Tata Steelium registering growth of more than 30% year-on-year.

The company's digital platforms, Aashiyana and DigECA, generated a Gross Merchandise Value (GMV) of around Rs. 2,200 crore, representing 61% year-on-year growth. Tata Steel also expanded its presence in emerging sectors including shipbuilding, data centres and container manufacturing.

Referring to the NINL expansion, Mr. Narendran said the project is central to Tata Steel's strategy of strengthening its presence in high-margin and branded long products.

On overseas operations, he noted that recently implemented safeguard measures in the UK are expected to create a more supportive market environment, although the benefits may vary across product categories. The company continues to engage with the UK Government to ensure a level playing field for domestic steel producers.

Regarding the Netherlands operations, Mr. Narendran said Tata Steel is working closely with local environmental authorities to implement the required technical measures for the safe and compliant restart of the Direct Sheet Plant.

Providing the financial perspective, Mr. Koushik Chatterjee, Executive Director & Chief Financial Officer, said consolidated EBITDA has now reached close to Rs. 13,000 per tonne.

He highlighted that Neelachal Ispat Nigam Limited generated EBITDA of Rs. 498 crore, translating into a 29% EBITDA margin, demonstrating the strong earnings potential of the business and providing confidence for the approved expansion project.

Mr. Chatterjee added that Tata Steel UK reduced its EBITDA loss from negative GBP 48 million in the fourth quarter to negative GBP 27 million in Q1 FY27, supported by targeted operational improvements and stronger pricing resulting from trade protection measures. The improvement was achieved despite operational disruptions caused by a pickle line fire.

In the Netherlands, performance continued to be affected by the temporary shutdown of the Direct Sheet Plant, although discussions with the regulator are progressing toward a restart. He further stated that working capital increased during the quarter due to inventory build-up caused by operational and supply chain disruptions, along with higher raw material prices. However, the company remains focused on cost optimisation and improving working capital efficiency to maximise cash flows.

Reiterating the significance of the Board's approval, Mr. Chatterjee said the Rs. 33,873 crore investment represents the first phase of NINL's expansion, with engineering activities already completed and the project now at an advanced stage of readiness. The expansion is expected to play a key role in Tata Steel's long-term growth strategy by significantly enhancing its presence in India's branded long products market.

Published at : Aug 31, 2026 07:31 AM (IST)

Total Views : 131