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Chandigarh: Tata Steel reported a strong set of unaudited financial results for the quarter and half-year ended September 30, 2025 (Q2 FY26). The performance was largely driven by its robust India operations, which helped navigate a challenging global environment and significantly boosted the company’s consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA).
The consolidated EBITDA margin improved for the second consecutive quarter, reflecting successful cost management efforts despite global headwinds.
India Operations (India¹)
The India business was the primary engine of growth and profitability:
- EBITDA: ₹8,654 crores
- EBITDA Margin: 25%
- Volume Growth: Crude steel production was up 8% QoQ to 5.65 million tons, and deliveries were up a strong 17% QoQ to 5.55 million tons, aided primarily by a rise in domestic deliveries.
Europe Operations
The European units showed divergent performances:
- Netherlands (Tata Steel Netherlands):
- EBITDA: €92 million (Up 44% QoQ from €64 million in Q1 FY26).
- Deliveries: 1.54 million tons.
- The turnaround suggests progress in restoring competitiveness.
- UK (Tata Steel UK):
- EBITDA Loss: £66 million (Loss widened QoQ from £41 million in Q1 FY26).
- Deliveries: 0.57 million tons.
- The loss on a YoY basis has halved, but the sequential widening suggests ongoing subdued demand and transition challenges.
Half-Year (H1 FY26) Overview
For the half-year ended September 30, 2025:
- Consolidated Revenues: ₹1,11,867 crores
- Consolidated EBITDA: ₹16,585 crores (Margin ~15%)
- EBITDA improved by 27% YoY despite the challenging operating environment.
- India¹ EBITDA: ₹16,140 crores (Margin 24%), improving 16% YoY.
- Netherlands EBITDA: €155 million, which doubled YoY.
- UK EBITDA Loss: £107 million, with the loss halving YoY.
⚙️ Strategic Moves and Capital Structure
Capital Expenditure & Debt
- Capital Expenditure (Capex): ₹3,250 crores was spent during the quarter, bringing the H1 FY26 total to ₹7,079 crores. This significant spend underscores the company’s commitment to growth and modernization.
- Net Debt: Maintained at ₹87,040 crores.
Corporate Transactions & Decarbonisation
- BlueScope Acquisition: Tata Steel executed a share purchase agreement to acquire the remaining 50% stake in Tata BlueScope Steel Private Limited, which is a downstream portfolio expansion move, subject to regulatory approvals.
- Asset Sale: Signed an Asset Transfer Agreement for the sale of its Ferro Alloy Plant at Jajpur, Odisha, to Indian Metals & Ferro Alloys Ltd. for ₹610 crores.
- Netherlands Decarbonisation: The company is moving ahead with its sustainability agenda, signing a non-binding Joint Letter of Intent with the Government of the Netherlands and the province of North-Holland on an integrated health measures & decarbonisation project.
Financial Highlights:
| Key Profit & Loss account items (All figures are in Rs. Crores unless specified) | India1 | Consolidated | ||||
| 2QFY26 | 1QFY26 | 2QFY25 | 2QFY26 | 1QFY26 | 2QFY25 | |
| Production (mn ton)2 | 5.65 | 5.24 | 5.28 | 7.73 | 7.33 | 7.69 |
| Deliveries (mn ton) | 5.55 | 4.75 | 5.11 | 7.91 | 7.12 | 7.52 |
| Turnover | 34,787 | 31,137 | 32,660 | 58,689 | 53,178 | 53,905 |
| Reported EBITDA | 8,654 | 7,486 | 6,912 | 9,106 | 7,480 | 6,224 |
| Reported EBITDA per ton (Rs. Per ton) | 15,580 | 15,760 | 13,524 | 11,518 | 10,503 | 8,278 |
| Adjusted EBITDA3 | 8,516 | 7,463 | 6,889 | 8,968 | 7,456 | 5,522 |
| Adjusted EBITDA per ton (Rs. Per ton) | 15,331 | 15,711 | 13,479 | 11,343 | 10,470 | 7,345 |
| PBT before exceptional items | 5,789 | 4,748 | 4,682 | 4,643 | 3,199 | 2,146 |
| Exceptional Items (gain)/loss | 418 | 219 | (14) | 420 | 132 | (18) |
| Reported Profit after Tax | 4,215 | 3,454 | 3,460 | 3,183 | 2,007 | 759 |
1.India includes Tata Steel Standalone and Neelachal Ispat Nigam Limited on proforma basis adjusted for intercompany purchase and sale; 2. Production numbers for consolidated financials are calculated using crude steel for India, liquid steel for UK & Netherlands and saleable steel for South East Asia; 3. Adjusted for changes on account of FX movement on intercompany debt / receivables’.
Management Comments:
Mr. T V Narendran, Chief Executive Officer & Managing Director:
“The global operating environment remained challenging with persistent overhang of tariffs, geopolitical tensions and elevated steel exports. Despite this, Tata Steel delivered a resilient performance with the EBITDA margin improving for the second consecutive quarter. In India, while the crude steel production rose 8%, deliveries grew at a higher rate of 17% QoQ as our marketing franchise enabled us to scale effectively. We continue to strengthen our market leadership across key segments, underpinned by capacity expansion and a focused downstream strategy. Our new 0.5 MTPA combi mill will further amplify this advantage and strengthen our presence in specialty steel segment. Our well-established retail brand, Tata Tiscon grew by 27% QoQ and we continue to consolidate our position in engineering and construction solutions. On the digital front, our e-commerce platforms such as Aashiyana and DigECA achieved Gross Merchandise Value of Rs 1,980 crores for the quarter and more than tripled on YoY basis. As for overseas operations, UK deliveries were 0.57 million tons and Netherlands deliveries were 1.54 million tons.”
Mr. Koushik Chatterjee, Executive Director and Chief Financial Officer:
“Tata Steel has continued to perform despite the challenging operating environment. For the quarter ended 30th September 2025, EBITDA margin improved by 145 bps QoQ and 280 bps for the half year, reflecting operational strength and cost discipline. Consolidated revenues for the quarter stood at Rs 58,689 crores, while EBITDA was Rs 9,106 crores, translating to a margin of ~16% or Rs 11,518 per ton. This performance was underpinned by sharp focus on cost transformation program, which delivered around Rs 2,561 crores for the quarter and around Rs 5,450 crores for the half year. India performance has been aided by strong growth in volumes. NINL, our strategic lever to expand in long products business, generated EBITDA, of around Rs 260 crores. Netherlands EBITDA was higher by €28 million QoQ, as we make progress on restoring competitiveness. However, UK EBITDA declined by £24 million on QoQ basis due to subdued prices on account of UK safeguard quotas exceeding prevalent demand. We remain focused on volume growth in India, strengthening our raw material linkages and optimising capital allocation. We are closely monitoring policy developments in EU and UK and will look to prioritise, optimise and sequence the decarbonisation capex spend such that it is affordable to all stakeholders. Overall, operating cash flows before capex and dividend were ~Rs 7,000 crores and we have spent Rs 3,250 crores towards capital expenditure in the quarter and Rs 7,079 crores during the half year. In line with efforts to optimise debt portfolio, we have reduced TSUK debt by £540 million during the quarter and our consolidated gross debt has decreased by around Rs 3,300 cores QoQ to Rs 95,643 crores. On 12th November, Tata Steel executed a share purchase agreement with BlueScope Steel to acquire the balance 50% stake in Tata BlueScope Steel Private Limited. This is in line with our objective to grow the downstream portfolio. Following the acquisition, TBSPL will become a 100% subsidiary of Tata Steel. ”
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Source: Tata Steel PR
