Tata Steel Q1 PAT jumps 116% to ₹2,078 cr on cost cuts, better realisations

Tata Steel on Wednesday reported a 116.51 per cent year-on-year (Y-o-Y) jump in consolidated net profit (attributable to owners of the company) at ₹2,077.68 crore in the first quarter of 2025-26 (Q1FY26) led by an increase in net steel realisations and planned cost takeouts. The steel major’s net profit in the year-ago period had stood at ₹959.61 crore.

 

Total revenue on a consolidated basis in Q1FY26 was ₹53,178.12 crore, down 2.91 per cent Y-o-Y. Both revenue and net profit came in ahead of Bloomberg consensus estimate at ₹51,409 crore and 1,786 crore, respectively.

 

Sequentially, revenue was down 5.41 per cent and net profit up 59.72 per cent.

 

 

Commenting on the company’s performance, T V Narendran, managing director and chief executive officer (MD&CEO), said: “Tata Steel has demonstrated robust profitability across geographies despite volatile global macro conditions and heightened uncertainty. The strong improvement in our Q1 performance on Q-o-Q (quarter-on-quarter) as well as Y-o-Y basis was driven by an increase in our net steel realisations and the planned cost takeouts.”

 

Domestic operations

 

Tata Steel India reported a turnover of ₹31,137 crore in Q1FY26 compared to ₹33,195 crore in Q1FY25. Reported profit after tax (PAT) was at ₹3,454 crore as against ₹3,337 crore in the year-ago period.

 

Quarterly production and deliveries in India were affected by maintenance shutdowns in Jamshedpur and Neelachal Ispat Nigam Limited. The company expects these to normalise in the coming quarters.

 

“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,” Narendran said.

 

Tata Steel’s 5 million tonnes per annum (mtpa) blast furnace at Kalinganagar was ramping up well, the company said. It has commissioned one of the two continuous galvanising lines in the 2.2 mtpa CRM (cold rolling mill) complex.

 

In Ludhiana, construction for the electric arc furnace (EAF) was underway. In the UK, the official start of construction for the EAF was marked by a groundbreaking ceremony on July 14.

 

Tata Steel’s capital expenditure (capex) during the quarter stood at ₹3,829 crore.

 

Tata Steel Europe

 

In the UK, revenues were at 536 million pound for the quarter. Ebitda loss at 41 million pound narrowed from a loss of 80 million pound in Q4FY25. Deliveries at 0.60 mt were marginally lower on subdued demand.

 

Ebitda stands for earnings before interest, taxes, depreciation and amortisation.

 

Revenues from the Netherlands operations were at 1,519 million euro for the quarter while Ebitda was 64 million euro. The Ebitda in Q4FY25 had stood at 14 million euro. Liquid steel production was 1.70 mt and deliveries were 1.50 mt.

 

On decarbonisation in the Netherlands, Tata Steel said in its results disclosure that intense discussions between the management and the Netherlands government are ongoing with relation to a "tailor-made approach" for support to address the reduction of carbon emissions and environmental concerns of the local community and authorities.

 

Tata Steel expects the Dutch government to provide a certain level of financial support, which is the subject of discussions between the company, Tata Steel Netherlands, and the government there.

 

Cost transformation programme

 

Koushik Chatterjee, executive director and chief financial officer (ED&CFO), said: “Tata Steel has delivered resilient performance and sequentially improved margins by around 200 basis points (bps) despite challenging demand and uncertainty on trade tariffs.”

 

He also said that the cost transformation programme, focused on multiple levers — including operating KPIs (key performance indicators), supply chain, and procurement — had delivered around ₹2,900 crore during the quarter. “We remain focused on cost optimisation, operational improvements, and working capital management to maximise cashflows,” Chatterjee said.

 

As of June 30, 2025, net debt stood at ₹84,835 crore and group liquidity at ₹43,578 crore, with cash and cash equivalents of ₹14,118 crore.