Tata Steel on November 12 reported 272% surge in consolidated net profit at Rs 3,102 crore for the quarter ended September 30, 2025. It reported consolidated net profit of Rs 833 crore in the year-ago period.
The Tata group firm's consolidated revenue from operations rose 9% to Rs 58,689 crore in Q2FY26 as against Rs 53,905 crore in Q2FY25. Consolidated earnings before interest, taxes, depreciation, and amortisation (EBITDA) on a reported basis increased by more than 46% year-on-year to Rs 9,106 crore.
The increase in consolidated EBITDA was largely driven by an increase of EBITDA in its Netherlands operations, a decrease in the EBITDA loss in the UK business, and a 25% percent increase in the EBITDA for its core business in India.
Steel deliveries on a consolidated basis increased to 7.91 million tonne for the reported quarter, against 7.52 MT a year ago. Production grew slightly for the period to 7.69 MT.
Capex plans
Tata Steel spent Rs 3,250 crore towards capital expenditure for the quarter, according to a statement from the company's chief financial officer Koushik Chatterjee, with the company currently incurring significant expenses towards the restructuring and decarbonisation of its UK operations, primarily at Port Talbot, Wales.
Chatterjee added that the company is continuing its deleveraging journey, particularly in its overseas operations.
"In line with efforts to optimise debt portfolio, we have reduced Tata Steel UK (TSUK) debt by £540 million during the quarter and our consolidated gross debt has decreased by around Rs 3,300 cores QoQ to Rs 95,643 crores," Chatterjee said.
The company's MD T.V. Narendran noted that it has started taking steps to decarbonise its operations in The Netherlands, where Tata Steel has one of Europe's largest steel production facilities, in IJmuiden, on the North Sea coast. It signed a tripartite agreement on health measures and the decarbonisation project with the Dutch government and the regional authorities of North Holland, where IJmuiden is located.
The decarbonisation project in The Netherlands is lagging behind that of the UK, where the government is footing around £500 million of the £1.25 billion restructuring bill. The Netherlands restructuring is expected to cost around $5 billion, with Tata Steel expecting the government to provide significant financial support towards the project.
Shoring up downstream ops
In a bid to increase market share in the downstream products category, the company's board approved acquisition of 50% equity stake in Tata BlueScope Steel for Rs 1,100 crore from the Australian metals firm BlueScope. Tata Steel had earlier amalgamated its subsidiaries Tata Metaliks and Tata Steel Long Products with itself, in order to integrate its approach towards downstream products.
"(Board) Considered and approved the acquisition of 50% equity stake in Tata BlueScope Steel Private Limited (a 50:50 joint venture between Tata Steel Limited through its wholly-owned subsidiary - Tata Steel Downstream Products Limited and BlueScope Steel Limited through its wholly owned subsidiary - BlueScope Steel Asia Holdings Pty Ltd), from BlueScope Steel Asia Holdings Pty Ltd, for a consideration of up to Rs 1,100 crore," said Tata Steel in a stock exchange filing.
Tata Steel also sold its ferro-chrome plant in Jajpur, Odisha to Bhubaneswar-based metals firm Indian Metals and Ferro Alloys (IMFA) for Rs 610 crore. The sale is expected to close in the next few months.
On November 12, Tata Steel shares on NSE closed 1.3% lower at Rs 178.7 apiece.
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