Tata Steel (TATASTEEL) Q2 25/26 earnings summary

Executive summary

• Delivered strong quarter-on-quarter and year-on-year improvement despite global headwinds from tariffs, geopolitical tensions, and elevated Chinese steel exports.

• Achieved 10% QoQ revenue growth to Rs 58,689 crores, driven by higher deliveries in India and Netherlands despite lower realisations.

• India operations saw robust production and sales growth, with domestic deliveries up 20% quarter-on-quarter and EBITDA margin improving to 25%.

• Significant progress in decarbonisation projects in UK and Netherlands, with major investments and government support.

• Acquisition of the remaining 50% equity stake in Tata BlueScope Steel Private Limited (TBSPL) for ₹1,100 crore was approved, making TBSPL an indirect wholly owned subsidiary, subject to regulatory approvals.

Financial highlights

• Consolidated Q2 FY26 revenues: INR 58,689 crore, up 10% quarter-on-quarter; adjusted EBITDA at Rs 8,968 crore; PAT at Rs 3,183 crore.

• Standalone India Q2 revenues: INR 34,680 crore; EBITDA: INR 8,394 crore; EBITDA margin: 24%.

• Netherlands Q2 revenues: EUR 1.5 billion (Rs 15,719 crore); EBITDA at Rs 916 crore.

• U.K. EBITDA loss widened to GBP 66 million in Q2 from GBP 41 million in Q1; revenue declined to Rs 5,927 crore.

• Standalone and consolidated EBITDA margins for H1 FY26 improved to 23.83% and 14.83%, respectively.

Outlook and guidance

• Ongoing capacity expansions in India, including Kalinganagar and Ludhiana EAF, to support future growth.

• Decarbonisation initiatives in UK and Netherlands expected to reduce emissions and improve operational efficiency.

• India Q3 realizations expected to be INR 1,500 lower than Q2; coking coal costs to rise by $6 per ton.

• Netherlands Q3 prices to be EUR 30 lower than Q2, but Q4 expected to improve due to EU protectionist measures.

• The company expects to close the TBSPL acquisition within 3-4 months, pending regulatory approvals.