Tata Steel Q2 Results: Profit Rises 18% to ₹3,666 Crore on India Volumes

Tata Steel Q2 results showed consolidated net profit attributable to owners rising 18.2% year-on-year to ₹3,666.41 crore, as stronger India volumes offset continued weakness in the UK.

Profit stood at ₹3,101.75 crore in the year-ago quarter. Sequentially, it rose 58.1% from the April–June period, according to the results reported by Business Standard.

Consolidated revenue grew 11.5% year-on-year to ₹65,436.24 crore and was 7.6% higher than in the previous quarter. EBITDA came in at ₹10,665 crore, up 14% quarter-on-quarter, while EBITDA per tonne stayed above ₹13,000.

Group deliveries totalled 7.92 million tonnes in the July–September quarter, 9% more than in the June quarter.

India business drives Tata Steel net profit

The domestic operations remained the main earnings engine. Tata Steel India posted revenue of ₹42,653 crore, up 22.6% from a year earlier, and profit after tax of ₹5,055 crore, up 19.9%.

The India business earned EBITDA of ₹17,790 per tonne, a margin of 25%, and its volumes rose 16% over the previous quarter. In its October 7 production update, the company had reported India crude steel output of 6.21 million tonnes for the quarter, up 10% year-on-year.

“India continued to be the cornerstone of our performance,” said T V Narendran, CEO and Managing Director. He credited a resilient supply chain and close customer engagement at a time of geoeconomic uncertainty and higher raw material costs.

Netherlands improves, UK loss widens sequentially

The European operations presented a mixed picture. Tata Steel Netherlands reported revenue of ₹15,330 crore against ₹15,719 crore a year ago. Its EBITDA of ₹790 crore was below the ₹916 crore of Q2FY26 but sharply higher than the ₹39 crore earned in the June quarter.

The company linked the Dutch recovery to better pricing and the restart of its direct sheet plant in early August. Koushik Chatterjee, Executive Director and CFO, said higher India volumes and the normalisation of operations in the Netherlands helped offset elevated input costs.

Tata Steel UK remained a drag. Its deliveries fell 22% from the previous quarter on weak demand and inventory build-up in the supply chain ahead of new safeguard measures.

The UK unit’s revenue was ₹5,275 crore, compared with ₹5,927 crore a year earlier. It posted an EBITDA loss of ₹719 crore, narrower than the ₹765 crore loss a year ago but wider than the ₹341 crore loss in Q1FY27.

Net debt, capex and what to watch after Tata Steel Q2 results

Capital expenditure was about ₹3,280 crore in the quarter and ₹6,860 crore for the first half of FY27. Net debt stood at ₹91,423 crore, with net debt-to-EBITDA at 2.4 times.

On the project front, the 4.8 MTPA expansion at Neelachal Ispat Nigam Limited (NINL) has entered the execution phase. The hot-rolled pickling and galvanising line and the tinplate expansion are under construction.

Separately, Noel Naval Tata will retire as non-executive, non-independent director and vice-chairman of Tata Steel with effect from the close of business on November 11, 2026, in line with the Tata Group Governance Guidelines. He turns 70 on November 12 and is also stepping down from the boards of other Tata companies, including Titan, Trent and Voltas.

For business leaders, the quarter shows how heavily Tata Steel’s earnings rest on the domestic market. The India unit’s profit after tax was higher than the group’s consolidated net profit, which means the overseas operations, chiefly the UK, are still pulling down group returns.

For steel users in construction, automobiles and infrastructure, the 16% sequential rise in India volumes points to steady domestic offtake. Other metal producers have also reported a strong September quarter; NALCO’s Q2 profit rose 28% to ₹1,835 crore, while Hindustan Zinc posted a record ₹6,412 crore profit.

Investors will now watch whether the UK business stabilises under the new trade regime, how quickly the NINL expansion progresses and whether net debt eases from current levels. The full Q2 numbers are available in the Business Standard report on the results, and more corporate earnings coverage is on our Business News page.