Tata Steel Q1FY27: Consolidated Net Profit Rises 12% To ₹2,318 Crore

Tata Steel results for Q1FY27 showed consolidated net profit of ₹2,318 crore for the June quarter, up approximately 12% year-on-year (YoY) from ₹2,078 crore, beating analyst expectations as a 35% surge in domestic profit more than compensated for operational disruptions at its Netherlands and UK plants.

Tata Steel Q1 profit was backed by strong revenue growth. Consolidated revenue from operations rose 14% year-on-year to ₹60,412 crore, while earnings before interest, tax, depreciation and amortisation (EBITDA) increased 25% to ₹9,370 crore.

EBITDA per tonne climbed to ₹12,898 from ₹10,503 a year ago and improved sequentially for the third consecutive quarter.

India Carries The Quarter

The India business, comprising standalone operations and Neelachal Ispat Nigam Ltd (NINL), emerged as the key growth driver in the Tata Steel quarterly results:

• India revenue: ₹36,989 crore, up nearly 19% YoY.

• India EBITDA: Up 32% YoY.

• India EBITDA per tonne: ₹19,162, up from ₹15,760 a year ago.

• India profit: Surged more than 35% YoY.

Overseas Operations Under Pressure

The international picture was considerably more difficult:

• Tata Steel Netherlands EBITDA per tonne: Fell sharply to ₹279 from ₹4,074 a year ago due to a temporary shutdown of the Direct Sheet Plant.

• Tata Steel UK operating loss: Narrowed to ₹7,071 per tonne from ₹7,829 despite disruptions from a pickle line fire.

Chief Financial Officer Koushik Chatterjee said UK performance improved through targeted efficiency initiatives and better pricing supported by trade measures. He said discussions are ongoing with the local regulator for the Netherlands plant restart.

The NINL Expansion

The board approved a 4.8 million tonne per annum expansion of steelmaking capacity at NINL, involving capital expenditure of ₹33,873 crore. NINL is currently undergoing amalgamation into Tata Steel.

The company said the expansion will strengthen its long product portfolio, particularly branded retail products. For the full year, Tata Steel has guided capital expenditure of approximately ₹20,000 crore, which includes a 750,000 tonne per annum electric arc furnace being built in Ludhiana.

Chief Executive T.V. Narendran said the global operating environment remained complex, with West Asia developments affecting supply chains and input costs. Despite these headwinds, he said the company delivered a third consecutive quarter of sequential EBITDA per tonne improvement.

At 9:51 AM on Friday, Tata Steel shares were trading at ₹187.4, up 0.26% on the National Stock Exchange (NSE).

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