Tata Steel‘s net profit attributable to promoters for Q1FY27 rose 11.6% to Rs 2,318 crore from Rs 2,078 crore in the same period a year ago, led by lower finance costs.
India’s oldest steelmaker missed the Bloomberg estimate of Rs 2,502 crore on profit. However, its revenue beat the Bloomberg estimate of Rs 58,155 crore, coming in at Rs 60,794 crore, up 14.3% year-on-year.
“Global operating environment remained complex, with the impact of developments in West Asia on supply chains and input costs being more pronounced in the quarter. Our overseas operations also had to navigate operational disruptions. Despite these headwinds, Tata Steel delivered a sequential improvement in EBITDA per ton for the third consecutive quarter,” T V Narendran, chief executive officer and managing director at Tata Steel, said in a statement.
Earnings before interest, taxation, depreciation and amortisation (EBITDA) stood at Rs 9,264 crore, higher than the Bloomberg estimate of Rs 9,078 crore, and up 24.7% from Q1FY26. EBITDA margin was 15.2%, while PAT margin stood at 3.8%.
Reported EBITDA per tonne was Rs 11,410, compared with Rs 10,053 in Q1FY26 and Rs 12,898 in Q4FY26. The company said it is targeting Rs 7,140 crore through cost optimisation initiatives in FY27.
“We have spent around Rs 3,579 crore towards capital expenditure during the quarter. Working capital was impacted by inventory build due to operational and supply chain disruptions, and an increase in prices. We remain focused on cost optimisation and working capital efficiency to maximise cashflows,” Koushik Chatterjee, chief financial officer, Tata Steel, said.
The steelmaker recorded deliveries of 7.27 million tonnes in the first quarter, compared with 7.12 million tonnes in the year-ago period and 8.72 million tonnes in the preceding quarter. Capacity at the end of the quarter stood at 36 MTPA.
Steel production for the quarter rose to 7.69 million tonnes from 7.33 million tonnes in Q1FY26, but was lower than 8.23 million tonnes in the previous quarter.
Geography-wise performance
Tata Steel’s India revenue stood at Rs 36,989 crore, while EBITDA came in at Rs 9,908 crore, translating into an EBITDA margin of 27%. Crude steel production was 5.76 million tonnes, while deliveries stood at 5.17 million tonnes. The steelmaker said quarterly production and deliveries were affected by maintenance shutdowns at Meramandali and Kalinganagar, and both are expected to normalise in the coming quarters. India EBITDA per tonne stood at Rs 19,162, compared with Rs 15,760 in Q1FY26 and Rs 15,907 in the previous quarter.
UK revenue for the quarter stood at £484 million, while EBITDA loss narrowed to £27 million from £48 million in Q4FY26.
The Netherlands business reported revenue of €1,445 million, while EBITDA came in at €4 million, compared with €58 million in the previous quarter. Liquid steel production stood at 1.55 million tonnes and deliveries at 1.4 million tonnes, with operations affected by the closure of the Direct Sheet Plant, the company said. It added that the local environmental authority has permitted Tata Steel Netherlands to carry out trial runs, which are under way ahead of the restart of full operations.
Capital expenditure during the quarter stood at Rs 3,579 crore. “Our 0.75 MTPA EAF at Ludhiana is ramping up and construction is in progress for the 0.7 MTPA Hot Rolled Pickling & Galvanising Line, along with Phase 1 expansion of Tinplate from 0.4 to 0.7 MTPA,” Tata Steel said.
Net debt at the end of the June quarter stood at Rs 84,173 crore, compared with Rs 84,835 crore a year ago and Rs 80,144 crore in the preceding quarter.
Group liquidity stood at Rs 45,950 crore, including cash and cash equivalents of Rs 13,221 crore.