Tata Steel (TATASTEEL) Q4 25/26 earnings summary

Executive summary

• Delivered strong FY 2026 performance with consolidated EBITDA of INR 34,848 crores, up 35% year-on-year, and improved margins across geographies despite subdued pricing and operational challenges.

• India remains the core growth engine, with crude steel production and deliveries up 8% year-on-year to 23 million tons, and best-ever annual deliveries at 22.5 million tons.

• Significant ramp-up at Kalinganagar, commissioning of downstream facilities, and innovation in AI-led enablement supported value-led growth.

• Maintained investment grade credit ratings and recommended a dividend of INR 4 per share.

• Continued investments in capacity, downstream integration, and sustainable steelmaking in India, with major acquisitions and asset sales completed.

Financial highlights

• Consolidated revenue from operations for FY2026 was INR 2,32,140 crores, up 6% year-on-year; consolidated EBITDA margin expanded to 15%.

• Cost transformation program delivered INR 10,868 crores in savings; India contributed INR 3,927 crores.

• Operating cash flow before CapEx and dividend increased to INR 29,254 crores; free cash flow at INR 10,738 crores.

• Reported PAT for FY2026 was INR 10,886 crores, compared to INR 3,174 crores in FY2025.

• Net debt decreased to INR 80,144 crores as of March 2026; net debt to EBITDA reduced to 2.3x.

Outlook and guidance

• FY 2027 targets additional INR 7,100 crores in cost transformation savings.

• CapEx allocation to increase to INR 20,000 crores, with over 60% for India.

• Pursuing net zero emissions by 2045, with a 10-15% reduction in emission intensity by 2030 vs. FY2025.

• Q1 FY 2027 expected to see higher realizations in India (INR 6,000/ton increase), U.K. (GBP 80/ton), and Netherlands (EUR 80/ton).

• India steel demand expected to grow 8%-10% annually, driven by infrastructure-led growth.