Tata Steel’s Q2 Profit Rises 18.2% as Indian Operations Carry the Quarter

Synopsis

Tata Steel posted a consolidated net profit attributable to owners of ₹3,666.41 crore on revenue of ₹65,436.24 crore in the September quarter, which has risen 11.5% and 18.2% year-on-year, respectively. India operations did most of the work with 25% operating margins and revenue of ₹42,653 crore. Net debt was at ₹91,423 crore or 2.4 times EBITDA.

The headline numbers

Tata Steel's consolidated net profit attributable to owners jumped to ₹3,666.41 crore for the second quarter of 2026-27, up from ₹3,101.75 crore in the same period last year. Revenue from operations rose 11.5% to ₹65,436.24 crore. Revenue increased sequentially by 7.6% and profit increased by 58.1%.

The total consolidated profit (with minority interest) was reported at approximately ₹3,700 crore and is why the profit is shown as increasing by 16.2% in some reports on a slightly different base.

Consolidated EBITDA stood at ₹10,665 crore, a 14% increase from the previous quarter and 17% rise from a year before.

The result was powered by domestic operations. Tata Steel India reported revenue of ₹42,653 crore, up 22.6%, and profit after tax of ₹5,055 crore, up 19.9%. India's operating margin was approximately 25% with EBITDA of ₹10,634 crore.

The India segment earlier reported to be able to deliver 6.21 million tonnes of crude steel in the quarter, which was 10% higher than in the previous quarter, with record volumes in key customer segments. The first half production of 11.97 million tonnes and deliveries of 11.14 million tonnes were 8% higher.

The company spent about ₹3,280 crore on capital expenditure in the quarter and ₹6,860 crore in the first half. Net debt was at ₹91,423 crore and had a net debt-to-EBITDA ratio of 2.4 times. Last quarter, the board had approved an expansion of the Neelachal Ispat Nigam plant by investing ₹33,873 crore.

Overseas operations

Tata Steel Netherlands generated 1.77 million tonnes of liquid steel and supplied 1.65 million tonnes of liquid steel in the quarter outside India. The first-quarter report indicated that its foreign operations had been affected but had recovered in the quarter. Over and over again, the group's results reveal a disparity between the domestic and foreign earnings.

In the previous quarter management had said that it expected EBITDA margin to be affected in the second quarter due to volatility in price. Realisations, raw-material prices and work on the Neelachal expansion will be a focus for investors in coming quarters. Themes of the week – falling crude and a stronger rupee – would impact the input costs.