Tata Steel shares decline 2% after Q2 production growth update; global volumes remain under pressure

Tata Steel shares declined on 2% after the opening bell on Thursday, October 8, as equity market investors analysed the fine print of the steelmaker’s second-quarter (Q2) FY27 business and production update, while concerns remain about global volumes.

Data showed that Tata Steel shares declined around 2% to ₹172.26 apiece on Thursday's market, in comparison to ₹175.64 apiece at the previous stock market close.

Although Tata Steel’s India production and delivery volumes witnessed steady growth in the September quarter, the company’s global volumes remained subdued due to several key factors like the plant shutdown in the Netherlands and heavy rains in Thailand.

Last quarter, the muted delivery and production volumes failed to impress equity investors, and the stock declined after the Q1 business update. In the latest Q2 update, the growth company recorded an 8% sequential rise in crude steel production in India, and a 10% growth on a year-on-year basis.

The company filed its Q2 business update after the market operating hours on October 7.

NSE data showed that Tata Steel shares ended 1.71% lower at ₹175.64 apiece after Wednesday’s trading session, in comparison to ₹178.69 apiece at the previous equity market close.

India volumes

As per the NSE filing, Tata Steel India’s overall crude steel production witnessed a 10.1% growth to 6.21 million tonnes in the September quarter of FY27, in comparison to 5.64 million tonnes in the same period a year ago.

The company’s delivery volumes also jumped 7.5% on a year-on-year (YoY) basis to 5.97 million tonnes, from 5.55 million tonnes in the same period a year earlier.

Tata Steel cited higher output at Jamshedpur and Kalinganagar facilities as the reason behind the surge in the company’s India business performance in the second quarter.

On the demand front, the company highlighted that the deliveries in the period under review were supported by the enriched product mix and stable demand across market segments despite the seasonal rains.

Global volumes lag

While India volumes recorded growth, the global production and delivery volumes maintained their muted performance in the second quarter of FY27, with the Netherlands still recovering from the plant shutdown and Thailand facing the impact of heavy rainfall.

Reports earlier this year suggested that Tata Steel’s Netherlands plant, which was producing liquid steel, was shut down temporarily after emission measurements showed “Chromium-6” levels exceeding the permissible limit at one of the plant chimneys.

The company resumed its operations in August 2026 after the local environmental authority’s permission following a review.

“The Direct Sheet Plant restarted in Aug’26 and is operating at rated capacity under the agreed framework with local regulatory authorities. On a half-year basis, production was 3.07 million tons and deliveries were 2.70 million tons,” the company said.

In Thailand, Tata Steel’s saleable steel production and deliveries were marginally lower than the same period a year earlier, primarily due to heavy rains in the month of September 2026.

The company also serves its customers in the United Kingdom via downstream processing of purchased substrate, the volumes of which were impacted by the inventory buildup in the UK supply chain ahead of the implementation of new safeguard measures on July 1, 2026.

“Separately, we have fully ramped up production at Llanwern pickle line,” Tata Steel said in its official statement.

How have Tata Steel shares performed?

On a longer-term basis, Tata Steel shares have delivered nearly 35% returns to investors in the last five years, and more than 39% gains on their investment in the last three years. The company’s stock has risen 2% in the past one-year period.

However, the steelmaker’s stock has declined 3.4% on a year-to-date (YTD) basis in 2026, and was down over 4% in the last one-month period. The exchange data also showed that Tata Steel’s stock has declined 1.3% in the last five market sessions.

NSE data further showed that Tata Steel shares surged to hit their 52-week high of ₹224.40 apiece on May 15, 2026, while the 52-week low was at ₹160.06 apiece on December 9, 2025.

The steel manufacturer’s market capitalisation (m-cap) was at more than ₹2.19 lakh crore as of the stock market close on Wednesday, October 7, 2026.