Tata Steel Q3 PAT surges over seven-fold to Rs 2,688 cr

Tata Steel reported a sharp 723.14% jump in consolidated net profit to Rs 2688.70 crore on 6.4% increase in revenue from operations to Rs 56,646.05 crore in Q3 FY26 over Q3 FY25.

Profit before exceptional items and tax surged 122.92% YoY to Rs 4,008.65 crore during the quarter. However, the company reported a net exceptional loss Rs 139.88 crore in Q3 FY26. The exceptional losses were primarily driven by restructuring and other provisions amounting to Rs 737.19 crore, which represented the largest impact. This was accompanied by impairment of non-current assets of Rs 94.18 crore, provisions for demands and claims of Rs 102.24 crore, employee separation compensation costs of Rs 43.05 crore, and a statutory charge of Rs 81.79 crore arising from the implementation of new labour codes. These exceptional expenses were partially offset by a fair value gain of Rs 918.57 crore on non-current investments.

EBITDA jumped 39% YoY to Rs 8,309 crore with a margin of around 15%.

 

India revenues were Rs 35,725 crore and EBITDA was Rs 8,291 crores, which translates to a margin of 23%. During the quarter, Crude steel production was up 12% YoY to 6.34 million tons. Improved production supported deliveries volumes of 6.04 million tons in Q3 FY26, up 14% YoY.

UK revenues were euro 468 million and EBITDA loss stood at euro 63 million. Deliveries stood at 0.52 million tons and were impacted by subdued demand and steady imports.

The company has spent Rs 3,291 crore on capital expenditure during the quarter.

T V Narendran, chief executive officer & managing director, said, Our 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 tons surpassed the 2015 peak. Against this backdrop, Tata Steel delivered a strong performance in this quarter, with India crude steel production rising 12% while deliveries grew faster at 14% YoY, surpassing the 6 million tons mark in a quarter for the first time.

Automotive volumes grew 20% YoY, while our retail vertical gained further momentum. Tata Tiscon continued its growth, and our e-commerce platforms, Aashiyana and DigECA, achieved Gross Merchandise Value of Rs 2,380 crores for the quarter, up 68% YoY. Within the downstream portfolio, our tubes and wires businesses delivered their best-ever quarterly performance, supported by capacity additions, a richer product mix and dominant share in high-value infrastructure projects.

Looking ahead, the proposed 4.8 MTPA expansion at NINL and the 0.75 MTPA EAF at Ludhiana will significantly enhance our long products portfolio. At the same time, our strategic partnership in Maharashtra will fortify raw material needs beyond 2030 and help cater to the growing demand in western and southern India. In our overseas operations, deliveries stood at 0.52 million tons in the UK and 1.40 million tons in the Netherlands. 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.

Koushik Chatterjee, executive director and chief financial officer, said, For the nine months ended 31st December 2025, EBITDA margin improved by around 300 bps YoY, reflecting strong operational execution and sustained cost discipline. Our cost transformation program, focused on multiple levers including operating KPIs, supply chain efficiencies and procurement, has delivered savings of around Rs 3,000 crore for the quarter and around Rs 8,600 crore for the first nine months of the financial year.

During the quarter, consolidated EBITDA was Rs 8,309 crore, translating to a margin of around 15%. In India, domestic steel prices were at multiyear lows weighing on the steel spot spreads. Despite this, our India operations delivered an EBITDA margin of ~23% aided by value led growth and cost optimisation. Both in UK and Netherlands, volumes moderated on QoQ basis. UK performance was adversely impacted by subdued demand dynamics while the Netherlands delivered an EBITDA of euro 55 million. Overall, operating cash flows before capex were Rs 10,345 crore for the quarter. Our consolidated Net debt declined to Rs 81,834 crore.

Our group liquidity remains strong at Rs 44,062 crore, which includes cash & cash equivalents of Rs 10,765 crore. In India, we remain focused on volume growth, investments in downstream and strengthening our raw material linkages. 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 EU, which are pivotal for rebalancing EU market dynamics. We remain focused on prioritising, optimising and sequencing our capital allocation to balance investment needs with returns, while maintaining financial discipline and long term value creation for stakeholders.

Tata Steel group is among the top global steel companies with an annual crude steel capacity of 35 million tonnes per annum. It is one of the world's most geographically diversified steel producers, with operations and commercial presence across the world.

The scrip fell 0.30% to end at Rs 197.05 on the BSE.

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