Q1 FY26: Tata Steel profit more than doubles to Rs 2,007 crore

New Delhi: Tata Steel's consolidated net profit more than doubled to Rs 2,007.36 crore during the June quarter, on account of "increase in net steel realisations and the planned cost-takeouts" across geographies.

The Tata Group entity had posted a net profit of Rs 918.57 crore in the year-ago period.

The company's total income was lower at Rs 53,466.79 crore in the first quarter of FY26 compared to Rs 55,031.30 crore in the same period a year ago, the company said in a regulatory filing.

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The integrated steel maker managed to bring down expenses to Rs 50,347.31 crore from Rs 52,389.06 crore in the corresponding quarter of FY'25.

The cost of materials consumed by the company was at Rs 18,028.08 crore in the first quarter, lower than Rs 20,642.17 crore in the April-June quarter of the last financial year.

Tata Steel's revenues from India declined to Rs 31,014.36 crore in the first quarter from Rs 32.957.89 crore in the year-ago period.

The board of the company also approved infusion of an amount up to Rs 6 crore, in one or more tranches, in TP Adarsh Ltd (TPAL), and execution of a Share Purchase & Shareholders' Agreement (SPSA) between the company, Tata Power Renewable Energy Ltd (TPREL) and TPAL for acquisition (including by way of subscription) of 26 percent equity stake in TPAL.

In a statement, Tata Steel CEO and MD T V Narendran said the company has delivered robust profitability across geographies despite volatile global macro conditions and heightened uncertainty.

"The strong improvement in our Q1 performance on quarter-on-quarter (QoQ) as well as year-on-year (YoY) basis was driven by an increase in our net steel realisations and the planned cost-takeouts," he said.

In India, a large distribution network with 25,000+ dealers & distributors and focus on delivering customer requirements helped Tata Steel in selling higher value-added products and in creating value from the new facilities commissioned.

The company's ED and CFO Koushik Chatterjee said "consolidated revenues for the quarter were Rs 53,178 crore and EBITDA was Rs 7,480 crore, which translates to a margin of around 14 percent and Rs 10,503 per tonne. Higher steel realisations offset the decline in volumes across geographies".

Tata Steel remains focused on cost optimisation, operational improvements and working capital management to maximise cashflows, he said.

Homegrown Tata Steel is among top-five steel manufacturers with operations in India, Europe and South East Asia.

In UK, the company last month had the groundbreaking ceremony for the electric arc furnace (EAF) project at Port Talbot to transition to green steel operations, Narendran said.

"In Netherlands, our liquid steel production was 1.7 million tonnes and was close to rated capacity and performance was aided by favourable sales mix and higher realisations in the downstream business," he said.

Sharing financial details operations-wise, the CFO said India EBITDA improved from Rs 13,250 per tonne in Q4 to Rs 15,760 per tonne in Q1.

Neelachal Ispat Nigam Limited (NINL) -- now a wholly owned subsidiary of Tata Steel -- generated an EBITDA of Rs 224 crore in Q1 and is a strategic lever to expand in long products business for Tata Steel.

"Among our overseas operations, Netherlands EBITDA improved by (euros) €35 per tonne while UK EBITDA improved by (pounds) £58 per tonne on QoQ basis. We are committed to capacity growth in structurally attractive India market and have spent around Rs 3,829 crore towards capital expenditure during the quarter," he said.

As of June 30, 2025, net debt stood at Rs 84,835 crore and group liquidity position remains strong at Rs 43,578 crore with cash and cash equivalents of Rs 14,118 crore, Chatterjee said.

In an analyst call earlier, the CFO had said, "Looking ahead to FY26, our focus continues to be on controllable factors, and we are targeting further cost takeouts of almost Rs 11,500 crore... across geographies by focusing on controllable costs."

In financial terms, cost takeout refers to strategic cost reduction measures taken by companies by removing unnecessary expenses to improve profitability and efficiency.

Tata Steel's consolidated steel output fell to 7.33 MT from 8 MT in April-June, FY25, and deliveries dipped to 7.12 MT from 7.39 MT in Q1 of preceding financial year.

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