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Tata Steel Q2 Results: Net Profit Up 58%, Beats Estimates; Noel Tata To Retire As Vice Chairman

Tata Steel posts a stronger-than-expected Q2 performance, with revenue and EBITDA beating estimates. The company expects H2 to be stronger across India and the Netherlands.

Tata Steel Q2 Results: Net Profit Up 58%, Beats Estimates; Noel Tata To Retire As Vice Chairman
Tata Steel reports stronger Q2 earnings as India volumes rise and European operations improve.
(Photo: Unsplash)

Tata Steel Ltd. reported a stronger-than-expected performance for the September quarter, with its consolidated net profit rising 58% sequentially, while revenue and operating earnings comfortably beat Street estimates. Separately, Noel Tata is set to retire as vice chairman of the company's board.

The steelmaker reported a consolidated net profit of Rs 3,666 crore for the July-September quarter, compared with Rs 2,318 crore in the preceding quarter. Revenue for the quarter stood at Rs 65,436 crore, against the estimated Rs 64,152 crore.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) came in at Rs 10,533 crore, surpassing the estimate of Rs 10,007 crore. The EBITDA margin stood at 16.1%, higher than the Street's expectation of 15.6%.

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According to the company's investor presentation, consolidated revenue increased 8% sequentially from Rs 60,794 crore in the June quarter. Consolidated EBITDA, as per the official results release, rose 14% quarter-on-quarter to Rs 10,665 crore, compared with Rs 9,370 crore in the previous quarter.

India remained the key growth driver during the quarter, with crude steel production increasing 7% sequentially to 6.18 million tonnes. Deliveries rose 16% to 5.98 million tonnes, supported by demand across customer segments.

The India business reported revenue of Rs 42,653 crore and EBITDA of Rs 10,634 crore, translating into an operating margin of 25%.

In the Netherlands, EBITDA improved to 72 million euros from 4 million euros in the previous quarter, supported by favourable pricing and the restart of the Direct Sheet Plant in early August. The company expects Netherlands volumes to reach 6.5 million tonnes in FY27.

The UK business, however, continued to face challenging market conditions. It reported an EBITDA loss of 56 million pounds, with deliveries declining 22% sequentially to 0.38 million tonnes.

During the earnings call, the management indicated that the second half of FY27 is expected to be stronger than the first half for both India and the Netherlands, with higher volumes anticipated in the domestic business.

The company also expects to come close to breaking even in its UK business by the fourth quarter of FY27.

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The merger of Neelachal Ispat Nigam Ltd. with Tata Steel is on track for completion by the end of FY27, subject to final approval from the National Company Law Tribunal.

Tata Steel spent Rs 3,280 crore on capital expenditure during the September quarter, taking its first-half spending to Rs 6,860 crore.

As of September 30, 2026, the company's consolidated net debt stood at Rs 91,423 crore, while its net debt-to-EBITDA ratio was 2.4 times. Group liquidity remained strong at Rs 40,076 crore, including cash and cash equivalents of around Rs 10,300 crore.

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