Tata Steel reports strong Q2 FY26 results, with consolidated EBITDA reaching ₹9,106 crores, a 22% QoQ increase. The half-year EBITDA stands at ₹16,585 crores, up 27% YoY. India revenues reached ₹65,924 crores with a 24% EBITDA margin. The company focuses on cost optimization and volume growth in India, while transitioning its UK and Netherlands businesses for long-term economic viability. Capex for the half year reached ₹7,079 crores.
Financial Performance
Tata Steel has announced its financial results, showcasing significant improvements in profitability. Consolidated Revenues for H1 FY26 reached ₹1,11,867 crores, with EBITDA at ₹16,585 crores, resulting in a 15% margin. This reflects a 27% year-on-year improvement in EBITDA, amidst a challenging operating environment.
For Q2 FY26 (July-September 2025), Consolidated Revenues stood at ₹58,689 crores and EBITDA reached ₹9,106 crores, with a margin of approximately 16%. This represents a 22% increase in EBITDA compared to the previous quarter (Q1 FY26) and a 46% increase year-on-year.
India Business
Tata Steel’s India revenues for H1 FY26 were reported as ₹65,924 crores, with EBITDA at ₹16,140 crores, achieving a margin of 24%. EBITDA improved by 16% YoY.
Crude steel production increased by 8% QoQ to 5.65 million tons, while deliveries grew by 17% QoQ to 5.55 million tons, driven by higher domestic demand.
European Operations
Tata Steel Netherlands reported revenues of €3,070 million and EBITDA of €155 million for H1 FY26. EBITDA doubled on a YoY basis. In Q2 FY26, revenues were €1,551 million and EBITDA was €92 million, compared to €64 million in Q1 FY26. Liquid steel production was 1.67 million tons, and deliveries reached 1.54 million tons.
Tata Steel UK reported revenues of £1,041 million for H1 FY26, with an EBITDA loss of £107 million. The EBITDA loss was halved YoY. For Q2 FY26, revenues were £505 million with an EBITDA loss of £66 million, compared to a loss of £41 million in Q1 FY26. Deliveries stood at 0.57 million tons.
Strategic Developments and Capex
The company’s capital expenditure (capex) for the quarter was ₹3,250 crores and ₹7,079 crores for the half year. Net debt stands at ₹87,040 crores.
In September 2025, Tata Steel signed a non-binding Joint Letter of Intent with the Government of the Netherlands and the province of North-Holland for an integrated health measures & decarbonisation project.
Tata Steel has executed a share purchase agreement with BlueScope Steel to acquire the balance 50% stake in Tata BlueScope Steel Private Limited to expand its India downstream portfolio. The company also signed an Asset Transfer Agreement with Indian Metals & Ferro Alloys Ltd. for the sale of Ferro Alloy Plant at Jajpur, Odisha for a base consideration of ₹610 crores.
Management Commentary
Mr. T V Narendran, Chief Executive Officer & Managing Director, stated that Tata Steel delivered a resilient performance with improving EBITDA margin, driven by effective scaling and strengthening market leadership. He highlighted the focus on transitioning UK and Netherlands businesses to economically and environmentally viable operations.
Mr. Koushik Chatterjee, Executive Director and Chief Financial Officer, noted that Tata Steel has continued to perform despite the challenging operating environment. He emphasized the company’s focus on cost transformation, volume growth in India, and optimizing capital allocation. He also mentioned the close monitoring of policy developments in EU and UK regarding decarbonization capex.
Source: BSE
