Tata Steel Q1 FY26 profit more than doubles to ₹2,078 cr; revenue down 3%

Tata Steel's revenue from operations declined by 3 per cent year-on-year (Y-oY) to ₹52,744 crore in Q1 FY26, down from ₹54,412 crore in Q1 FY25

 

Tata Steel on Wednesday reported a 117 per cent year-on-year (Y-o-Y) jump in its consolidated net profit for the first quarter of financial year 2025-26 (Q1 FY26), reaching ₹2,078 crore. The profit stood at ₹960 crore in the same period last year. On a sequential basis, the profit surged 59.7 per cent from ₹1,300.81 crore in Q4 FY25. The huge leap in profits was aided by lower expenses.  

 

However, the company’s revenue from operations declined by 3 per cent Y-o-Y to ₹52,744 crore in Q1 FY26, down from ₹54,412 crore in Q1 FY25. On a quarter-on-quarter (Q-o-Q) basis, the revenue fell 5.3 per cent from ₹55,707 crore in Q4 FY25. 

 

 

Tata Steel’s total expenses in Q1 FY26 stood at ₹50,347 crore, down 4 per cent from ₹52,389 crore in Q1 FY25, and 7 per cent lower than ₹54,168 crore in Q4 FY25.

 

"The strong improvement in our Q1 performance on Q-o-Q as well as Y-o-Y basis was driven by an increase in our net steel realisations and the planned cost-take outs. In India, our large distribution network with 25,000+ dealers & distributors and our focus on delivering customer requirements helped us in selling higher value-added products and in creating value from the new facilities we commissioned," said TV Narendran, chief executive officer and managing director of Tata Steel.

 

The steel major's earnings before interest, taxes, depreciation, and amortisation (Ebitda) improved 10 per cent Y-o-Y and 11 per cent sequentially to ₹7,480 crore, resulting in an Ebitda margin of around 14 per cent, the company said in a BSE filing.

 

It added that its crude steel production stood at 5.24 million tonnes per quarter, while deliveries were 4.75 million tonnes, impacted by maintenance shutdowns at the Jamshedpur plant and Neelachal Ispat Nigam Limited. 

 

"We are also leveraging the growing digital marketplace by expanding presence through e-commerce platforms such as Aashiyana and DigECA. The Gross Merchandise Value through these platforms now stands at ₹5,400 crores on annualised basis, an increase of 52 per cent Y-o-Y," Narendran said. 

 

Tata Steel invested ₹3,829 crore in capital expenditure during the quarter, including the ramp-up of a 5 million tonnes per annum (MTPA) blast furnace at Kalinganagar and commissioning one of two continuous galvanising lines at the 2.2 MTPA Cold Rolling Mill (CRM) complex. The firm added that construction work is underway for facilities in Ludhiana and the United Kingdom.

 

Shares of Tata Steel closed at ₹161.35 apiece on the BSE on Wednesday,

 

Tata Steel Q1 FY26 result highlights

 

Revenue from operations: ₹52,744 crore

Profit: ₹2,078 crore

Earnings per share: ₹1.67 (basic and diluted)

Ebitda margin: 14 per cent

Crude steel production: 5.24 million tonnes