Tata Steel Q2 net profit jumps 4.2x to ₹3,183 crore on strong domestic deliveries; beats estimates

Homegrown Tata Steel Ltd on Wednesday (November 12) reported a net profit of ₹3,183 crore for the quarter ended September 2025, up 319% year-on-year from ₹759 crore in the same period last year, and exceeding the CNBC-TV18 poll estimate of ₹2,880 crore by 10.5%.

Revenue for the quarter rose 8.9% YoY to ₹58,689 crore from ₹53,904 crore, beating the poll estimate of ₹55,934 crore by 4.9%. EBITDA grew 45% YoY to ₹8,897 crore from ₹6,140 crore in Q2 FY25, above the estimated ₹8,480 crore by 4.9%. The EBITDA margin expanded to 15.2% from 11.4% YoY, matching market expectations of 15.2%.

Tata Steel’s India operations reported revenues of ₹34,787 crore and EBITDA of ₹8,654 crore for the quarter, translating to a margin of 25%. Crude steel production increased 8% quarter-on-quarter to 5.65 million tonne, while deliveries rose 17% QoQ to 5.55 million tonne, supported by higher domestic demand.

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In the Netherlands, revenues stood at €1,551 million with an EBITDA of €92 million, up from €64 million in Q1 FY26. Liquid steel production reached 1.67 million tonne, and deliveries were 1.54 million tonne. The UK business reported revenues of £505 million, with an EBITDA loss of £66 million compared to a loss of £41 million in Q1 FY26. Deliveries in the UK were 0.57 million tons, marginally lower due to subdued demand.

Half Yearly

On a consolidated basis, revenues for the half year were ₹1,11,867 crore and EBITDA stood at ₹16,585 crore, representing a margin of around 15%. EBITDA improved 27% YoY despite challenging operating conditions.

India operations contributed ₹65,924 crore in revenues and ₹16,140 crore in EBITDA for the half year, translating to an EBITDA margin of 24%, with EBITDA rising 16% YoY. The Netherlands reported €3,070 million in revenues and €155 million in EBITDA, doubling YoY. The UK recorded revenues of £1,041 million with an EBITDA loss of £107 million, reducing its YoY loss by half.

During the quarter, Tata Steel incurred ₹3,250 crore in capital expenditure, taking half-year capex to ₹7,079 crore. Net debt stood at ₹87,040 crore. In September 2025, Tata Steel signed a non-binding Joint Letter of Intent with the Government of the Netherlands and the province of North-Holland for an integrated health measures and decarbonisation project.

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As part of expanding its India downstream portfolio, Tata Steel executed a share purchase agreement with BlueScope Steel to acquire the remaining 50% stake in Tata BlueScope Steel Private Limited, subject to regulatory approvals.

Additionally, Tata Steel signed an Asset Transfer Agreement with Indian Metals & Ferro Alloys Ltd. for the sale of its Ferro Alloy Plant at Jajpur, Odisha, for a base consideration of ₹610 crore.

T V Narendran, Chief Executive Officer and Managing Director, said, “The global operating environment remained challenging with persistent overhang of tariffs, geopolitical tensions and elevated steel exports. Despite this, Tata Steel delivered a resilient performance with the EBITDA margin improving for the second consecutive quarter. In India, while the crude steel production rose 8%, deliveries grew at a higher rate of 17% QoQ as our marketing franchise enabled us to scale effectively.

We continue to strengthen our market leadership across key segments, underpinned by capacity expansion and a focused downstream strategy. Kalinganagar’s continuous annealing line and galvanising line have expanded our high-end product offerings to automotive. Our new 0.5 MTPA combi mill will further amplify this advantage and strengthen our presence in specialty steel segment."

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Shares of Tata Steel Ltd ended at ₹178.65, down by ₹2.35, or 1.30%, on the BSE.