Tata Steel profit surges in September quarter, beats estimates

By Admin

13 Nov, 2025

Tata Steel Ltd has reported a robust performance for the September quarter, surpassing analyst expectations and showcasing strong operational resilience despite a challenging global environment. The steelmaker’s consolidated net profit soared nearly fourfold year-on-year to ₹3,101.75 crore, significantly higher than Bloomberg’s estimate of ₹2,739.58 crore. Sequentially, the company’s profit rose by 49%, driven by higher deliveries in India and the Netherlands and stringent cost control measures.

Strong Financial Performance

Tata Steel’s consolidated revenue from operations climbed 9% year-on-year and 10% sequentially to ₹58,689 crore during the July-September quarter. The company also reported a consolidated Ebitda of ₹8,897 crore, a 45% increase from the same period last year and 20% higher sequentially. The surge was largely supported by improved sales volumes and disciplined cost management.

“Ebitda on a consolidated basis is a good jump and ahead of consensus,” said Aditya Welekar, Senior Research Analyst, Metals at Axis Securities. “This reflects the higher sales volume across geographies, mainly in India.”

Operational Highlights

Tata Steel’s crude steel production in India rose 8% sequentially to 5.65 million tonnes, while deliveries jumped 17% to 5.55 million tonnes, backed by robust domestic demand. According to T.V. Narendran, Managing Director and CEO of Tata Steel, the company’s “resilient performance” amidst tariffs, geopolitical tensions, and elevated global steel exports demonstrates its strong market positioning.

“We continue to strengthen our market leadership across key segments, underpinned by capacity expansion and a focused downstream strategy,” Narendran said.

The company’s cost transformation initiatives contributed a notable ₹2,561 crore in savings during the quarter. “We remain focused on volume growth in India, strengthening raw material linkages, and optimising capital allocation,” added Koushik Chatterjee, Executive Director and CFO.

Overseas Operations and Strategic Moves

While Tata Steel’s Netherlands operations recorded an Ebitda of €92 million, up from €64 million in the previous quarter, its UK operations continued to face headwinds, reporting an Ebitda loss of £66 million compared to a loss of £41 million in Q1FY26 due to subdued demand.

To strengthen its sustainability efforts, Tata Steel signed a non-binding letter of intent with the Dutch government to advance health and decarbonisation initiatives at its IJmuiden plant. The company also reaffirmed its commitment to transitioning its UK and Netherlands businesses into economically and environmentally viable operations.

Chatterjee noted that Tata Steel is “closely monitoring policy developments in the EU and UK” to prioritise and sequence its decarbonisation capital expenditure effectively.

During the quarter, the steelmaker spent ₹3,250 crore on capital expenditure, with total spending reaching ₹7,079 crore for the half year. Additionally, the board approved the acquisition of the remaining 50% stake in Tata BlueScope Steel Pvt. Ltd for up to ₹1,100 crore, turning it into a wholly owned subsidiary a move aligned with Tata Steel’s goal to expand its downstream portfolio.

Analyst Insights

Analysts credited the company’s strong Indian operations and cost efficiency for its impressive quarterly performance. “Indian operations’ sales volume were higher and costs were under control, leading to strong operating leverage,” said Welekar. However, he noted that the UK operations remain a concern due to weak demand.

Satyadeep Jain, Lead Analyst for Metals and Mining at Ambit Capital, added, “The earnings beat was driven by the company’s Indian operations, supported by strong volumes and effective cost controls. Investors will closely watch the management’s commentary on cost savings breakdown and Ebitda guidance for the UK business.”

Market Reaction

Despite the upbeat results, Tata Steel shares closed 1.3% lower at ₹178.70 on Wednesday, even as the benchmark Nifty gained 0.70%. The earnings announcement was made after market hours.

Conclusion

Tata Steel’s September quarter results highlight its ability to navigate global economic challenges while maintaining profitability and operational strength. With a strategic focus on cost efficiency, sustainability, and downstream growth, the company remains well-positioned to sustain its leadership in the global steel industry.