Tata Steel ended FY26 on a strong note, aided by higher volumes and firm steel prices
Tata Steel, India’s second-largest steelmaker, saw its revenue in FY2026 beat market expectations, driven by strong volumes and higher steel prices.
Consolidated revenue from operations increased by 6% ₹2.32 trillion in FY 2026 for the steel company ₹2.18 trillion a year ago. Profit exceeded the record ₹2.31 trillion forecast by 37 analysts surveyed Bloomberg.
“FY2026 was characterized by increasing geoeconomic uncertainty with supply chain and tariff-induced trade disruptions affecting global steel markets. Against this backdrop, our continued focus on operational discipline and cost transformation continued to deliver performance across our global businesses,” Tata Steel Chief Executive Officer and Managing Director TV Narendran said in a statement.
The Mumbai-based company reported a three-fold increase in consolidated net profit attributable to owners. ₹10,793.87 crore in fiscal 2026 compared to the same period in the previous year, as per stock exchange records. EBITDA increased by 36 percent ₹34,352.44 crore in FY26 ₹25,298.45 crore in the previous financial year.
Tata Steel also noted rising concerns over ongoing oil prices West Asian conflict and pressure are expected to continue in FY27, he said, adding that disruptions in energy, oil, shipping and foreign exchange markets began affecting supply chains and input costs in the March quarter.
“The global business environment has again become very challenging with the impact of the West Asian conflict on energy, oil, trade and foreign exchange markets,” Koushik Chatterjee, managing director and chief financial officer of Tata Steel, said in a statement. The steelmaker “warns and actively monitors performance triggers across geographies.”
According to the company statement, Dutch revenues were 6 billion 28 million euros, EBITDA almost tripled on an annual basis to 267 million euros, while UK revenues were 1 billion 978 million pounds and EBITDA losses were almost halved to 217 million pounds.
Uncertainty in the Netherlands
However, Tata Steel warned that its businesses in the Netherlands continue to face a challenging regulatory environment. The company said local authorities have indicated plans to revoke operating permits and shut down coke and gas plants early. IJmuiden site due to environmental concerns. Tata Steel Netherlands has already paid more than €20 million in penalties in FY26 due to emissions from its facilities.
The steelmaker also stated that these developments created ‘material uncertainty’ regarding the financial stability and ongoing operations of its Dutch subsidiary.
Chatterjee said in his statement that Tata Steel Netherlands “faces numerous uncertainties regarding the environmental footprint of its assets in a complex and evolving regulatory environment, which affects the operating rhythm of the business.”
“Tata Steel reported strong numbers driven by healthy volume growth, cost rationalization measures and higher steel prices.” said Suman Kumar, metals and mining analyst at Philip Capital. “With UK overhead now largely behind us following the closure of loss-making blast furnaces and legacy cost clearing, the company’s losses have narrowed significantly, supporting a sharp improvement in profitability.”
Tata Steel reported steel production of 31.67 million tonnes and deliveries of 31.97 million tonnes in FY26 on a consolidated basis.
The steelmaker reported a 12.5% increase in revenue for the quarter ending March 2026. ₹63,270.13 crore compared to the same quarter of the previous year. Net profit more than doubled ₹2,925.74 crore compared to ₹ 2,925.74 crore in Q2FY26 ₹1,300.81 crore in Q25.
“In the last quarter, developments in West Asia began to put pressure on supply chains and input costs, and these pressures continue in fiscal 2027. In this context, we are maintaining calibrated actions to reduce risks,” Narendran said in a statement.
