Tata Steel (TATASTEEL) Q3 25/26 earnings summary

Executive summary

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

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

• Automotive and special products achieved record volumes, and retail brands saw strong growth, supported by downstream ramp-up.

• Continued leadership in technology, sustainability, and cost efficiency, with robust progress in decarbonisation and digital transformation initiatives.

• Consolidated stake in color-coated business and completed acquisition of 50.01% in Thriveni Pellets Pvt Ltd.

Financial highlights

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

• Q3 consolidated revenue was ₹57,002 crore, EBITDA ₹8,309 crore (15% margin), and net profit ₹2,730.37 crore.

• Standalone revenue for Q3 FY26: ₹35,578.36 crore; standalone EBITDA margin: 22.32%.

• Free cash flow for the quarter was ₹7,054 crore, net debt reduced to ₹81,834 crore, and net debt/EBITDA at 2.6x.

• Cost transformation program delivered ₹8,600 crore in savings over nine months, offsetting a ₹7,400 crore revenue impact from 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.

• Volume guidance for FY27 to be provided in the next analyst call; Ludhiana plant to start up by March.

• Expansion projects sequenced: NINL first (commissioning by FY2029), then Meramandali, followed by Maharashtra or Kalinganagar.