Tata Steel reported a healthy financial performance for the September quarter of FY27, registering double-digit growth in both consolidated net profit and revenue as stronger volumes in India and improved operations in the Netherlands supported its overall performance. The Tata Group steelmaker posted consolidated profit after tax (PAT) of Rs 3,699.59 crore for Q2FY27, marking a 16.2 per cent increase from Rs 3,183.09 crore recorded in the corresponding quarter last year.
Revenue from operations also witnessed an improvement, climbing 11.5 per cent year-on-year (YoY) to Rs 65,436.24 crore, compared with Rs 58,689.29 crore in Q2FY26.
Consolidated earnings before interest, taxes, depreciation and amortisation (EBITDA) reached Rs 10,665 crore, representing a margin of approximately 16 per cent. EBITDA increased 17 per cent compared with the year-ago quarter and was 14 per cent higher sequentially.
Separately, the company announced that Noel Naval Tata will relinquish his positions as Non-Executive, Non-Independent Director and Vice Chairman of the Board. His retirement will take effect at the close of business on November 11, 2026.
India Business Drives Tata Steel’s Quarterly Performance
India remained the company’s strongest operating market during the September quarter, supported by higher production and improved deliveries.
The domestic business generated revenue of Rs 42,653 crore and EBITDA of Rs 10,634 crore, resulting in a healthy operating margin of 25 per cent.
Crude steel production in India increased 7 per cent quarter-on-quarter (QoQ) to 6.18 million tonnes. Deliveries recorded a stronger improvement, rising 16 per cent sequentially to 5.98 million tonnes.
The company’s performance was supported by growth in customer-focused businesses, including automotive and specialised steel products, along with increasing sales in downstream categories.
Netherlands Operations Improve Following Production Restart
Tata Steel’s European operations reported mixed developments during the quarter, with the Netherlands benefiting from the resumption of production at its Direct Sheet Plant.
The Netherlands business recorded revenue of 1,395 million euros, while EBITDA stood at 72 million euros. The restart of the Direct Sheet Plant in early August contributed to improvements in its product mix and operating cost structure.
Liquid steel output in the country reached 1.52 million tonnes, while deliveries totalled 1.30 million tonnes during the reporting period.
In the UK, the company generated revenue of 411 million pounds. However, operations continued to remain under pressure, with an EBITDA loss of 56 million pounds. Deliveries in the region stood at 0.38 million tonnes.
First-Half FY27 Financial Performance Remains Strong
For the six months ended September 2026, Tata Steel reported consolidated revenue of Rs 1,26,231 crore and EBITDA of Rs 20,035 crore, with an operating margin of approximately 16 per cent.
Despite challenging business conditions, EBITDA registered a 21 per cent YoY increase during the first half of FY27.
India continued to account for a significant share of the company’s earnings, generating revenue of Rs 79,641 crore and EBITDA of Rs 20,541 crore. The domestic EBITDA margin stood at 26 per cent, reflecting a 27 per cent annual improvement in operating earnings.
In the Netherlands, first-half revenue amounted to 2,840 million euros, while EBITDA came in at 76 million euros.
The UK business reported revenue of 895 million pounds. Its EBITDA loss narrowed 22 per cent YoY to 83 million pounds, indicating some improvement despite persistent operating challenges.
The company maintained its investment momentum during the quarter, spending approximately Rs 3,280 crore on capital expenditure. Total capital expenditure for the first half of FY27 stood at Rs 6,860 crore.
Several important expansion initiatives remain under implementation. These include the 4.8 million tonnes per annum (MTPA) capacity expansion at Neelachal Ispat Nigam Limited, a 0.7 MTPA Hot Rolled Pickling and Galvanising Line, and a 300 kilotonnes (kt) expansion of its tinplate business.
On the balance sheet front, Tata Steel reported net debt of Rs 91,423 crore, with its net debt-to-EBITDA ratio at 2.4 times.
The company’s consolidated liquidity position stood at Rs 40,076 crore, including approximately Rs 10,300 crore in cash and cash equivalents.
