Tata Steel has reported a sharp 116 per cent rise in its consolidated net profit in the first quarter results announced on Wednesday. The PAT stood at Rs 2,077.68 crore from Rs 959.61 crore in the same period last year. The company saw a rise in profit despite a muted performance from its European operations and a marginal drop in consolidated revenue.
The steelmaker’s revenue from operations stood at Rs 53,178 crore in Q1FY26, nearly flat compared to Rs 54,771 crore in the year-ago period. Tata Steel India remained the top contributor, posting a revenue of Rs 31,014 crore.
Tata Steel India operations drive growth
Tata Steel’s India business delivered a robust performance with EBITDA of Rs 7,486 crore in the June quarter. The EBITDA margin for the India business stood at 24 per cent. The company said EBITDA per ton improved to Rs 15,760, up by Rs 2,510 compared to the previous quarter.
Steel production in India stood at 5.24 million tons, while deliveries were at 4.75 million tons. The company said production and deliveries were temporarily impacted due to maintenance shutdowns at its Jamshedpur and Neelachal Ispat Nigam Limited (NINL) plants, but normal operations are expected to resume in the coming quarters.
Tata Steel to acquire 26% equity stake in TP Adarsh
Tata Steel approved the acquisition of a 26 per cent equity stake in TP Adarsh Limited (TPAL), a wholly owned subsidiary of Tata Power Renewable Energy. The investment of up to Rs 6 crore will be made in cash over one or more tranches.
TPAL was set up in October 2023 to focus on solar power generation and is yet to begin operations. With this acquisition, Tata Steel aims to cut power costs and lower its carbon footprint by sourcing renewable energy.
The company also completed the acquisition of 100 per cent equity stake in Neelachal Ispat Nigam on July 24. NINL generated an EBITDA of Rs 224 crores in Q1.
Tata Steel reported a net debt of Rs 84,835 crore as of June 30, 2025. The company’s liquidity position remains strong at Rs 43,578 crore, which includes cash and cash equivalents of Rs 14,118 crore.
Digital push boosts sales: Tata Steel CEO
Commenting on the performance, Tata Steel CEO and MD T V Narendran said, “Tata Steel has demonstrated robust profitability across geographies despite volatile global macro conditions. Our strong Q1 performance was driven by improved net steel realisations and planned cost reductions.”
He added, “Our large distribution network of over 25,000 dealers and our focus on high-value products helped us gain momentum. We’re also leveraging digital platforms like Aashiyana and DigECA, which now generate Rs 5,400 crore in annualised GMV—a 52 per cent YoY rise.”