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Tata Steel reported a steady performance in Q1FY27

ICICIdirect Research 31 Jul 2026 DISCLAIMER

News: Tata Steel reported a steady performance in Q1FY27. On the consolidated basis, total operating income for the quarter came in at ₹60,794 crore (up 14% YoY and down 4% QoQ) with steel sales volume of 7.3 MT (up 2% YoY). Reported EBITDA for the quarter came in at ₹9,264 crore with corresponding EBITDA margins at 15.2% (down ~30 bps QoQ). EBITDA/tonne at Indian operation stood at ₹18,727 vs ₹15,952 in Q4FY26. Netherland’s EBITDA reported at €4 million in Q1FY27 (vs €58 million in Q4’26). While UK operation’s EBITDA loss declined from £48 million in Q4’26 to £27 million in Q1’27. Consolidated PAT for the quarter was at ₹2,318 crore, up 12% YoY. Moreover, the board has approved the capex of ~₹33,873 crore for steel making capacity expansion by 4.8 MTPA at Neelachal plant.

View: Tata Steel’s India operations reported a healthy 21% YoY revenue growth to ₹38,165 crore in Q1FY27, largely driven by higher blended steel realisations of ₹74,679/tonne (up 16% QoQ), the highest among domestic steel producer during the quarter. However, the benefit of higher realisation was offset by elevated raw material and other operating costs, limiting the EBITDA/tonne improvement by ~₹2,774/tonne to ~₹18,727/ton in the quarter. Meanwhile, the Netherland operations was impacted by higher raw material cost following the temporary shutdown of the Direct Sheet Plant. That said, the local environment has approved trial runs, paving the way for gradual restart of full operations. With this, we maintain a positive view on Tata Steel, supported by ongoing capacity expansions, favourable domestic steel demand, and the expected benefits from CBAM implementation and stricter import quota in Europe, which should support profitability over the medium term.

Impact: Positive

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