The private sector steel major had reported sales of 1.88 million tonnes in the corresponding quarter a year earlier, the company said in a statement.
Production of saleable steel during the quarter rose 3.9 per cent to 2.15 million tonnes from 2.06 million tonnes.
"Flat product saleable steel production was best ever in Q3 at 1.48 million tonnes (previous best 1.46 million tonnes in Q4 FY'13)," Tata Steel said.
Flat products such as hot-rolled coil and cold-rolled coil are used in automotive, heavy machinery, pipes and tubes, packaging and appliances sectors.
The company's hot metal production increased 1.6 per cent to 2.31 million tonnes during the quarter. Crude steel output rose 3.7 per cent to 2.16 million tonnes.
Tata Steel had reported sales volumes of 2.03 million tonnes and production of 2.2 million tonnes of saleable steel during the second quarter of this financial year.
Tata Steel's sales in April-December period stood at 6.1 million tonnes while production of saleable steel during this period was 6.5 million tonnes.