Tata Steel delivered a robust performance in the second quarter of FY26 on 12 November 2025, posting a substantial rise in profitability and operational strength across its India, Netherlands and UK businesses. The company reported a 272 per cent year-on-year increase in consolidated net profit, reaching ₹3,102 crore compared with ₹833 crore in the same period last year. This growth was supported by higher sales volumes in India and ongoing cost transformation initiatives.
Consolidated revenue from operations stood at ₹58,689 crore, recording a 9 per cent increase from ₹53,904 crore in Q2FY25. Sequentially, revenue rose by 10 per cent, while net profit improved by 49 per cent compared with the previous quarter.
EBITDA Performance and Margin Expansion
Tata Steel reported consolidated EBITDA of ₹9,106 crore, reflecting a 46 per cent year-on-year increase and a 22 per cent rise on a sequential basis. The EBITDA margin stood at around 16 per cent, supported by stronger contributions from the company’s Netherlands operations and a reduction in losses in the UK business.
In India, EBITDA reached ₹8,654 crore, translating to a margin of 25 per cent for the quarter.
The company’s cost transformation programme continued to yield notable results, contributing ₹2,561 crore during Q2 and ₹5,450 crore for H1FY26.
India Business: Growth in Production and Deliveries
The India segment remained the core driver of performance.
Key highlights include:
- Turnover of ₹34,787 crore, up from ₹32,660 crore in the year-ago period.
- Crude steel production up 8 per cent quarter-on-quarter to 5.65 million tonnes.
- Deliveries up 17 per cent quarter-on-quarter to 5.55 million tonnes, supported by higher domestic demand.
The company stated that its marketing franchise enabled efficient scaling of volumes while strengthening its leadership position in key segments.
European Operations: Mixed Outcomes Across Regions
Netherlands
- Revenue: €1,551 million
- EBITDA: €92 million, up from €64 million in Q1FY26
- Liquid steel production: 1.67 million tonnes
- Deliveries: 1.54 million tonnes
United Kingdom
- Revenue: £505 million
- EBITDA loss: £66 million, compared with a loss of £41 million in the previous quarter
- Deliveries: 0.57 million tonnes, slightly lower due to subdued demand
As part of its ongoing deleveraging efforts, Tata Steel reduced debt at its UK operations by £540 million. Consolidated gross debt fell by ₹3,300 crore quarter-on-quarter to ₹95,643 crore.
Strategic Updates: Strengthening Downstream Portfolio
During the quarter, Tata Steel made several strategic advancements in its downstream business:
- The board approved the acquisition of the remaining 50 per cent stake in Tata BlueScope Steel Private Limited for ₹1,100 crore, further strengthening its presence in coated steel and construction solutions.
- The company spent ₹3,250 crore on capital expenditure during Q2 and ₹7,079 crore during H1FY26.
- It continued to progress on restructuring and decarbonisation initiatives in the UK and the Netherlands.
Additionally, Tata Steel completed the sale of its ferro-chrome plant in Jajpur, Odisha, to Indian Metals and Ferro Alloys (IMFA) for ₹610 crore.
Management Commentary
T V Narendran, Managing Director and Chief Executive Officer, highlighted that the company delivered a resilient performance despite a challenging global environment marked by tariffs, geopolitical tensions, and elevated steel exports. He emphasised the strong momentum in India, where both production and deliveries saw healthy growth.
Koushik Chatterjee, Executive Director and Chief Financial Officer, noted that the cost transformation programme and volume expansion in India were key drivers of the improved financial performance. He reiterated the company’s commitment to optimising capital allocation, enhancing raw material linkages, and progressing decarbonisation efforts in Europe.
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Conclusion
Tata Steel’s Q2FY26 results reflect solid operational progress and effective cost management across its global footprint. With strong volume growth in India, improving performance in the Netherlands, and focused deleveraging in the UK, the company remains on a steady path of strengthening its financial position and advancing its long-term strategic priorities. The quarter’s performance underscores Tata Steel’s resilience and readiness to navigate evolving market conditions while investing in downstream growth and sustainable operations.
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