Tata’s 120-year-old company makes huge profits, Noel Tata decides to retire from the company

Tata Steel, a nearly 120-year-old Tata Group company, on Friday said its consolidated profit after tax (PAT) for the September quarter of fiscal 2027 rose 16.2% year-on-year to Rs. 3,699.59 crores. In the same quarter of last financial year it was Rs. 3,183.09 crores. Consolidated income from operations in the second quarter of FY27 (Q2FY27) rose 11.5% year-on-year to Rs. 65,436.24 crore, which is Rs. 58,689.29 crores. Meanwhile, Noel Naval Tata will retire as a non-executive, non-independent director and vice-chairman of the board at the end of business hours on November 11, 2026.

Increase in EBITDA

Consolidated earnings before interest, tax, depreciation and amortization (EBITDA) stood at Rs. 10,665 crore, a margin of around 16%. EBITDA improved by 14% quarter-on-quarter (QoQ) and 17% year-on-year (YoY). Income in India Rs. 42,653 crore, while EBITDA was Rs. 10,634 crore, representing an EBITDA margin of 25%. Crude steel production rose 7% quarter-on-quarter to 6.18 million tonnes, while deliveries rose 16% to 5.98 million tonnes. In the Netherlands, revenue was 1,395 million euros and EBITDA 72 million euros. This was helped by the restart of the ‘direct sheet plant’ in early August. Liquid steel production was 1.52 million tonnes, while deliveries were 1.30 million tonnes.

Decline in UK business

Revenue in the UK was £411 million, while EBITDA lost £56 million. Deliveries during the quarter stood at 0.38 million tonnes. In H1FY27, consolidated revenue stood at Rs. 1,26,231 crore, while EBITDA with a margin of around 16% was Rs. 20,035 crores. Despite a challenging operating environment, EBITDA grew 21% year-on-year (YoY). Income from India Rs. 79,641 crore, while EBITDA was Rs. 20,541 crore, showing a margin of 26%. EBITDA improved 27% YoY. In the Netherlands, revenue was EUR 2,840 million and EBITDA was EUR 76 million. In the UK, revenue was £895 million, while EBITDA loss fell 22% year-on-year to £83 million.

What was the capital cost?

The company in this quarter has approximately Rs. 3,280 crore in capital expenditure and in the first half of the financial year Rs. 6,860 crore was spent. Includes 4.8 MTPA capacity expansion, 0.7 MTPA hot rolled pickling and galvanizing line and 300 kt tinplate expansion at Neelachal Ispat Nigam Limited. Net Debt Rs. 91,423 crore and the net debt-to-EBITDA ratio was 2.4 times. The group’s liquidity stood at Rs. 40,076 crore, of which approximately Rs. 10,300 crore comprising cash and cash equivalents.

The company is making steady progress. Management’s Comment

CEO and MD TV Narendran said that despite geo-economic uncertainty and high raw material costs, with the help of better customer engagement and a strong supply chain, the company is making steady progress on its volume and value growth agenda in India. He highlighted the strong performance of the automotive and specialty products business, growth in downstream sales and an expanding presence in emerging sectors such as shipbuilding, data centers and containers. He also said that the company is making steady progress in its capacity expansion and downstream development projects. Talking about the international operations, Narendran said that the restart of the ‘direct sheet plant’ in the Netherlands has improved the product mix and cost profile. At the same time, in the UK, the company is facing difficult market conditions due to increased imports and accumulation of inventory (stock) in various parts of the value chain.

Merger of Nilachal Ispat Nigam Limited

Kaushik Chatterjee, the company’s executive director and chief financial officer, said volume growth in India and normalization of operations in the Netherlands helped offset the increase in input costs amid a volatile environment. He informed that after receiving final approval from NCLT, the merger of ‘Nilachal Ispat Nigam Limited’ with Tata Steel will be completed during this financial year. Apart from this, the company’s ‘Electric Arc Furnace’ (EAF) project in the UK is also underway and its construction is gaining momentum. Chatterjee further said that Tata Steel is focusing on cost optimization, operational improvement and working capital management to strengthen cash flow. Ahead of the results announcement, shares of Tata Steel rose 2.20 percent on the BSE on Friday to Rs. closed at 186. Earlier this share was Rs. closed at 182.