Tata Steel reported strong Q2 FY2026 earnings driven by improved volumes in India and ongoing cost transformation efforts. Consolidated EBITDA stood at ₹16,585 crores for the first half. Domestic deliveries increased by 20% QoQ. The company continues to focus on cost optimization and strategic realignment across its global operations, including Europe and the Netherlands. They also signed a joint letter of intent with the Dutch government for decarbonization.
Financial Performance Highlights
Tata Steel demonstrated robust performance in Q2 FY2026, marked by substantial volume growth in India and improved cost efficiencies. Key highlights include:
- Consolidated revenues for the first half of FY26 reached ₹1,11,867 crores.
- EBITDA for the first half was ₹16,585 crores.
- Consolidated EBITDA of ₹11,037 per ton, reflecting a margin of approximately 15%.
- EBITDA margin expanded by 280 bps in the first half.
- Cost transformation program delivered approximately ₹5,450 crores in savings during the first half.
India Business Performance
The India operations demonstrated notable growth:
- Crude steel production increased by 8% QoQ and 7% YoY to 5.65 million tons.
- Domestic deliveries saw a 20% QoQ increase.
- Tata Tiscon volumes grew by 27% QoQ.
European Operations
The company continues to focus on transforming its European operations:
- UK: Deliveries stood at approximately 0.6 million tons.
- Netherlands: Liquid steel production and deliveries were broadly stable.
- Signed a non-binding Joint Letter of Intent with the Dutch government for an integrated health measures & decarbonisation project in September 2025.
Cost Transformation and Strategic Realignment
Tata Steel’s cost transformation program yielded significant results:
- Achieved cost improvements of more than ₹2,561 crores during the quarter.
- India achieved full compliance with its Q2 plan, with savings from leaner coal mix and optimized maintenance expenses.
- Progress in the UK and Netherlands focused on reducing fixed costs and optimizing operating expenses.
- Announced the proposed divestment of the Ferro Alloy Plant located in Jajpur, Odisha, as part of strategic realignment.
Future Outlook
The company is focused on maximizing value from its existing assets and pursuing growth opportunities in India. Efforts are underway to expand capacity at Kalinganagar and Neelachal, aiming for a production capacity of 40 million tons per annum. Tata Steel is dedicated to innovation, sustainability, and delivering value to its stakeholders.
Source: BSE