Tata Steel (TATASTEEL) Q3 25/26 earnings summary

Executive summary

• Delivered consistent performance amid global policy uncertainty, with India operations achieving record deliveries and consolidated EBITDA margin improving by 300 bps year-on-year for the nine months ended Dec 2025.

• India remains the core market, with crude steel production up 12% quarter-on-quarter and sales surpassing 6 million tons for the first time.

• Ongoing cost optimization, technology leadership, and strong segmental performance, especially in automotive and special products, supported margins.

• UK and Netherlands operations showed improved profitability, with UK losses narrowing and Netherlands EBITDA nearly tripling year-on-year.

• Board approved audited standalone and unaudited consolidated results for the quarter and nine months ended December 31, 2025.

Financial highlights

• Consolidated EBITDA for nine months ended Dec 2025 rose 31% year-on-year to ₹24,894 crore; margin expanded from 12% to 15%.

• Q3 consolidated revenues were ₹57,002 crore, EBITDA ₹8,309 crore (15% margin), and net debt reduced to ₹81,834 crore.

• Standalone India EBITDA was ₹7,940 crore, with adjusted EBITDA per ton at ₹13,090.

• Standalone and consolidated revenues grew year-over-year, with consolidated net profit for Q3 FY26 at ₹2,730.37 crore.

• Cost transformation program delivered ₹8,600 crore in savings over nine months, offsetting lower steel realizations.

Outlook and guidance

• Expect Q4 EBITDA to improve across India, UK, and Netherlands, driven by higher prices, better mix, and cost takeouts.

• Scaling up capacity in India with ongoing and planned expansions, including a 0.75 MTPA EAF at Ludhiana and a 6 MTPA greenfield plant in Maharashtra.

• Decarbonisation projects in the UK and Netherlands progressing, with significant government funding and emission reduction targets.

• India steel prices projected to rise by ₹2,300 per ton quarter-over-quarter; coking coal costs to increase by $15 per ton.

• UK profitability contingent on government policy support and quota revisions.