Tata Steel Q2 net profit up 18.2 per cent Y-o-Y, led by India operations | Company Results

Tata Steel on Saturday reported an 18.2 per cent year-on-year (Y-o-Y) increase in consolidated net profit attributable to owners of the company to ₹3,666.41 crore in the second quarter of 2026-27 (Q2FY27), as its India operations continued to drive earnings. The steel major had reported a net profit of ₹3,101.75 crore in the year-ago period.

Consolidated revenue stood at ₹65,436.24 crore in Q2FY27, up 11.5 per cent year-on-year.

Sequentially, revenue increased 7.6 per cent, while net profit rose 58.1 per cent.

Commenting on the results, T V Narendran, chief executive officer and managing director, said the company delivered strong growth in deliveries and earnings during the quarter, supported by a resilient supply chain and close customer engagement despite ongoing geoeconomic uncertainty and higher raw material costs.

Deliveries grew 9 per cent quarter-on-quarter (Q-o-Q) to 7.92 million tonnes, while earnings before interest, tax, depreciation and amortisation (EBITDA) increased 14 per cent to ₹10,665 crore.

“India continued to be the cornerstone of our performance with volumes growing 16 per cent Q-o-Q despite a seasonally softer quarter, reflecting the strength of our market presence and customer reach,” Narendran said.

India operations drive earnings growth

Tata Steel India reported revenue of ₹42,653 crore in Q2FY27, up 22.6 per cent year-on-year. Profit after tax (PAT) increased 19.9 per cent to ₹5,055 crore.

Koushik Chatterjee, executive director and chief financial officer, said higher volumes in India and operational normalisation in the Netherlands helped offset elevated input costs.

Consolidated EBITDA for the quarter rose 14 per cent sequentially to ₹10,665 crore, with EBITDA per tonne remaining above ₹13,000.

Chatterjee said the performance was primarily driven by the strength of the India business, which delivered EBITDA of ₹17,790 per tonne and a margin of 25 per cent despite a seasonally softer quarter.

Significant capital expenditure projects are under way in India. The 4.8 million tonnes per annum (MTPA) expansion at Neelachal Ispat Nigam Limited has entered the execution phase, while construction is progressing on the hot-rolled pickling and galvanising line and the tinplate expansion project.

The company spent around ₹3,280 crore on capital expenditure during the quarter and ₹6,860 crore in the first half of FY27.

Net debt stood at ₹91,423 crore, while the net debt-to-EBITDA ratio was 2.4 times.

Netherlands operations return to profitability

In its overseas operations, Tata Steel continued to navigate challenging market conditions.

Tata Steel Netherlands reported revenue of ₹15,330 crore in Q2FY27, compared with ₹15,719 crore in Q2FY26.

EBITDA stood at ₹790 crore, against ₹916 crore in the year-ago quarter. However, profitability improved sequentially from ₹39 crore in Q1FY27, supported by favourable pricing and the restart of the direct sheet plant in early August.

The Netherlands operations have also been facing environmental challenges. Management said the company was working closely with regulators and remained focused on maintaining compliance and operational stability.

UK business faces weak demand, higher losses sequentially

In the UK, subdued demand and elevated inventories across the supply chain weighed on volumes and performance, Chatterjee said.

Tata Steel UK’s deliveries declined 22 per cent quarter-on-quarter due to weak demand and inventory accumulation across the UK supply chain ahead of revised trade measures that took effect on July 1, 2026, the company said in its investor presentation.

UK revenue stood at ₹5,275 crore in Q2FY27, compared with ₹5,927 crore in Q2FY26.

The UK operations reported an EBITDA loss of ₹719 crore, compared with a loss of ₹765 crore in the year-ago quarter. Sequentially, however, the loss widened from ₹341 crore in Q1FY27.

Noel Tata to retire from Tata Steel board

The company also announced that Noel Naval Tata will retire as non-executive, non-independent director and vice-chairman of the board, effective at the close of business on November 11, 2026, in accordance with the Tata Group Governance Guidelines.

Tata has been associated with the company since March 2022.

The company said he had provided valuable guidance and strategic direction during his tenure. The board placed on record its appreciation for his contributions to the company.