Tata Steel (TATASTEEL) Q2 25/26 earnings summary

Executive summary

• Achieved strong quarter-on-quarter and year-on-year improvement, with consolidated Q2 revenue up 10% to Rs 58,689 crore, driven by higher deliveries in India and Netherlands despite global headwinds from tariffs, geopolitical tensions, and elevated Chinese steel exports impacting pricing worldwide.

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

• European operations, especially in the U.K., faced market pressure due to high import quotas, weak demand, and transition risks related to decarbonization, resulting in widened EBITDA losses.

• Significant progress in decarbonization projects in the Netherlands and U.K., with major investments, government support, and a non-binding joint letter of intent signed with the Dutch government.

• Board approved the acquisition of the remaining 50% stake in Tata BlueScope Steel Private Limited for ₹1,100 crore, making it a wholly owned subsidiary, subject to regulatory approvals.

Financial highlights

• Consolidated Q2 FY26 revenue: Rs 58,689 crore (up from Rs 53,178 crore in Q2 FY25); consolidated EBITDA: Rs 9,106 crore; adjusted EBITDA: Rs 8,968 crore; consolidated net profit: Rs 2,007 crore (up from Rs 759 crore in Q2 FY25).

• Standalone India Q2 revenue: Rs 34,680 crore; EBITDA: Rs 8,394 crore; EBITDA margin: 24%; standalone net profit: Rs 3,220 crore.

• Netherlands Q2 revenue: Rs 15,719 crore; EBITDA: Rs 916 crore; U.K. Q2 revenue: Rs 5,927 crore, negative EBITDA of Rs 765 crore.

• Net debt as of September 2025: Rs 87,040 crore; net debt to EBITDA: 2.44x consolidated.

• CapEx spend in H1 FY26: Rs 7,079 crore; operating cash flow for H1: Rs 10,000 crore; dividend paid: Rs 4,490 crore.

Outlook and guidance

• Ongoing capacity expansions in India, including Kalinganagar and Ludhiana EAF, to support future growth; India Q3 realizations expected to be Rs 1,500 lower than Q2, with coking coal costs to rise by $6 per ton.

• Decarbonization initiatives in U.K. and Netherlands expected to reduce emissions and improve operational efficiency, with Q4 Netherlands prices expected to improve due to EU protectionist measures.

• U.K. prices remain at unsustainable levels; losses may persist without government intervention.

• India to see volume upside in Q3 with Kalinganagar ramp-up; margin compression expected but offset by higher volumes.

• TBSPL acquisition expected to close within 3-4 months, pending regulatory approvals.