Tata Steel shares gain 3% after Q2 results, ₹1,100-crore acquisition

Tata Steel shares gained 3 per cent after the company reported a multifold rise in second-quarter net profit and announced a ₹1,100-crore acquisition

Shares of Tata Steel Ltd. rose over 3 per cent on Thursday after the company reported a multifold jump in its net profit for the current financial year (Q2FY26), driven by higher sales volumes in India. 

 

The steel-maker's stock rose as much as 3.2 per cent during the day to ₹184 per share, the biggest intraday rise since October 28 this year. The stock pared gains to trade 1.7 per cent higher at ₹181.6 apiece, compared to a 0.14 per cent decline in Nifty 50 as of 09:36 AM. 

 

Shares of the company snapped a two-day losing streak and currently trade at 7.3 times the average 30-day trading volume, according to Bloomberg. The counter has risen 32 per cent this year, compared to a 9.2 per cent advance in the benchmark Nifty 50. Tata Steel has a total market capitalisation of ₹2.27 trillion. 

 

Tata Steel Q2 results 

Tata Steel reported a 272 per cent year-on-year (Y-o-Y) jump in consolidated net profit at ₹3,101.75 crore in Q2FY26, led by higher sales volumes in India and planned cost takeouts. The steel major’s net profit in the year-ago period had stood at ₹833.45 crore.

 

Total revenue on a consolidated basis in Q2FY26 was ₹58,689.29 crore, up 8.9 per cent Y-o-Y. Both revenue and net profit came in ahead of the Bloomberg consensus estimate of ₹55,897.6 crore and ₹2,739.6 crore, respectively.

 

Tata Steel India reported a turnover of ₹34,787 crore in Q2FY26 compared to ₹32,660 crore in the year-ago period. Reported profit after tax (PAT) was at ₹4,215 crore during the quarter, as against ₹3,460 crore a year back. In the Netherlands, revenues were 1,551 million euro and Ebitda was 92 million euro compared to 64 million euro in Q1FY26. Liquid steel production was 1.67 million tonnes (mt) and deliveries were 1.54 mt.

 

"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,"  T V Narendran, managing director and chief executive officer, Tata Steel, said.   CATCH STOCK MARKET LIVE UPDATES TODAY

Tata Steel acquires 50% stake in Tata BlueScope

The steel-maker also approved the acquisition of a 50 per cent equity stake in Tata BlueScope Steel Pvt. Ltd. (TBSPL) from BlueScope Steel Asia Holdings Pty Ltd for up to ₹1,100 crore. Following the board’s approval, Tata Steel executed a share purchase agreement with TBSPL, BlueScope Steel Asia Holdings Pty Ltd, and BlueScope Steel Limited. 

 

TBSPL is currently a 50:50 joint venture between Tata Steel (through its wholly owned subsidiary, Tata Steel Downstream Products Limited) and BlueScope Steel Limited (through its wholly owned subsidiary, BlueScope Steel Asia Holdings Pty Ltd).