Tata Steel reported a 319 per cent jump in profit after tax at ₹3,183 crore on a consolidated basis in the September quarter, compared with ₹759 crore in the same period of last fiscal, on the back of improved performance of its Indian operations and support from the Netherlands business.
The company’s consolidated revenue for the second quarter stood at ₹58,689 crore compared with ₹53,905 crore, up 8.8 per cent from the same period of FY25. Deliveries grew 10.5 per cent in India to 5.55 million tonnes as new capacity from Kalinganagar came on stream. On a quarter-on-quarter basis, deliveries were up 17 per cent.
Commenting on the performance, T.V. Narendran, managing director and CEO of the company, said, Tata Steel delivered “resilient performance” with EBIDTA margin improving for the second consecutive quarter, even as the global operating environment remained challenging with persistent overhang of tariffs, geopolitical tensions and elevated steel exports.
The company earned ₹11,343 per tonne EBITDA on a consolidated basis in Q2 compared with ₹10,503 a tonne in Q1 and ₹7345 a tonne in Q2FY25.
In the Netherlands, revenues were €3,070 million and EBITDA was €155 million, doubling on a YoY basis. In the UK, revenues were £1,041 million and EBITDA loss was £107 million, with loss halved on a YoY basis.
Koushik Chatterjee, executive director and CFO of Tata Steel, said the EBIDTA margin of 16 per cent and consolidated EBITDA of ₹9,106 crore was underpinned by a sharp focus on the cost transformation programme, which delivered ₹2,561 crore for the quarter and ₹5,450 crore for the half year.
The company spent ₹3,250 crore towards capital expenditure in the second quarter and ₹7,079 crore during the half-year. “In line with efforts to optimise debt portfolio, we have reduced TSUK debt by £540 million and our consolidated gross debt has decreased by ₹3,300 crore QoQ to ₹95,643 crore,” he said.
Tata Steel executed a share purchase agreement on Wednesday with BlueScope Steel to acquire the balance 50 per cent stake in Tata BlueScope Steel Private Limited for ₹1,100 crore.
