Tata Steel Q3FY25 results: Net profit jumps 723% to ₹2,688.7 crore

Tata Steel posts 723% jump in Q3 FY26 net profit to ₹2,689 crore on strong India volumes, Netherlands turnaround and cost savings, even as revenues miss estimates

Tata Steel on Friday reported a 723.1 per cent year-on-year (Y-o-Y) jump in consolidated net profit, attributable to owners, at ₹2,688.70 crore in the third quarter of 2025-26 (Q3FY26). This was on the back of higher volumes in India, turnaround in the Netherlands and planned cost takeout across regions. The steel major’s net profit in the year-ago period stood at ₹326.64 crore.

 

Total revenue on a consolidated basis in Q3FY26 was ₹57,002.40 crore, up 6.3 per cent Y-o-Y.

 

The revenue fell short of the Bloomberg consensus estimate of ₹57,440.1 crore even as net profit exceeded expectation. The estimate for net profit was ₹2,527.6 crore.

 

 

Sequentially, revenue and profit were down 2.9 per cent and 13.3 per cent, respectively on lower steel realisations.

 

Chief Executive Officer and Managing Director T V Narendran said the 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 tonnes, surpassed the 2015 peak. Against this backdrop, Tata Steel delivered a strong performance in this quarter, with India crude steel production rising 12 per cent while deliveries grew faster at 14 per cent, surpassing the 6 million tons-mark in a quarter for the first time.”

 

Tata Steel India reported turnover of ₹35,725 crore in the quarter compared to ₹32,930 crore in the year-ago period. Reported profit after tax (PAT) was at ₹3,823 crore during the quarter as against ₹3,865 crore a year back.

 

Koushik Chatterjee, executive director and chief financial officer said, in India, domestic steel prices were at multi-year lows weighing on the steel spot spreads. “Despite this, our India operations delivered an EBITDA margin of 23 per cent aided by value led growth and cost optimisation.”

 

During the quarter, Tata Steel spent ₹3,291 crore on capital expenditure and ₹10,370 crore in the first nine months of the financial year. Net debt declined by ₹5,206 crore quarter-on-quarter (Q-o-Q) to ₹81,834 crore.

 

The cost transformation programme — focused on multiple levers including operating KPIs, supply chain efficiencies and procurement – delivered savings of around ₹3,000 crore for the quarter and around ₹8,600 crore for the first nine months of the financial year.

 

In overseas operations, Tata Steel Netherlands, reported revenue of ₹14,001 crore in Q3FY26 compared to ₹13,863 crore in Q3FY25. It recorded EBITDA of ₹570 crore compared to an EBITDA loss of ₹9 crore in the year-ago period.

 

Tata Steel UK reported revenue of ₹5,536 crore in Q3FY26 compared to ₹5,665 crore a year ago. EBITDA loss was at ₹742 crore as against EBITDA loss of ₹730 crore in the year-ago period.

 

Deliveries stood at 0.52 million tons in the UK and 1.40 million tonnes in the Netherlands.

 

Narendran said: “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.”

 

Chatterjee added that UK market conditions continue to be pressured by subdued demand, while policy interventions are taking longer than anticipated to materialise.

 

“We are closely monitoring the situation and the evolving tariff framework and CBAM in the EU, which are pivotal for rebalancing EU market dynamics,” he said.