Tata Steel Q3 business updates: Firm records ‘best ever quarterly’ crude steel production; shares trade lower

The Tata firm said production increased 12% on a quarterly basis as well as year-on-year (YoY), primarily aided by higher output at the Jamshedpur and Kalinganagar facilities. For the nine months ended in the December quarter of FY26, production was up 6% YoY to ~17.2 mt.

“Improved production led to ‘best-ever quarterly’ deliveries, and Tata Steel India crossed the ‘6 million tonne’ mark for the first time,” the firm said in a regulatory filing.

Tata Steel’s India deliveries rose 9% quarter-on-quarter (QoQ) and 14% YoY, largely driven by strong domestic market demand. For the first nine months of FY26, deliveries increased 6% YoY to around 16.3 mt.

At 9:45 am, Tata Steel shares were trading at ₹181.83 apiece on the National Stock Exchange, down 1.09%. The stock had opened at ₹185.45 per share on Thursday, up 1.12% from the previous close, but soon lost momentum. It has since slipped to an intraday low of ₹181.78 apiece in the early trades.

Key highlights of domestic deliveries for Q3

• Automotive & Special Products’ vertical achieved ‘best-ever’ volumes of ~0.9 mt. Q3 volumes rose 20% YoY, aided by rapid OEMs’ approvals for hi-tensile grade from downstream facilities at Kalinganagar and for speciality steel from the combi-mill at Jamshedpur. On a nine-month basis, vertical volumes were up 5% YoY.

• Branded Products & Retail vertical surpassed 2 mt for the first time. Q3 volumes were up 12% YoY, driven by the performance of well-established brands such as Tata Tiscon, Tata Astrum and Tata Steelium. On a nine-month FY26 basis, vertical volumes were up 4% YoY.

• The Industrial Products & Projects vertical achieved volumes of ~1.9 mt, aided by the performance of value-accretive segments such as engineering.

• “During the quarter, we continued to progress on value-added growth and downstream portfolio. Tubes and tinplate downstream verticals achieved double-digit YoY growth, while wires achieved ‘best-ever’ quarterly volumes,” Tata Steel said.

• Gross Merchandise Value (GMV) from our e-commerce platforms, Tata Steel Aashiyana and DigECA, was ₹2,380 crore for the quarter, up 68% on a YoY basis.

Other segment updates

• Tata Steel Netherlands' liquid steel production in Q3 FY26 was 1.68 mt, and deliveries were 1.40 mt. Seasonal factors and subdued market dynamics led to lower deliveries on a QoQ basis.

• Tata Steel UK is serving its customers via downstream processing of purchased substrate. Deliveries for the quarter stood at 0.52 mt. “Enabling works for the EAF project have advanced, and the site landscape is being reshaped for the next phase of construction,” the firm said.

• During the quarter, Tata Steel Thailand's saleable steel production was 0.31 mt, and deliveries were 0.29 mt. Deliveries improved by 5% YoY, primarily driven by strong domestic rebar sales.

Tata Steel Q2 earnings

Tata Steel had reported a nearly fourfold YoY surge in its consolidated net profit to ₹3,101.75 crore for the September quarter of Q2 FY26. It had logged a profit of ₹833.45 crore in the same period of the previous fiscal year.

During the quarter under review, the steel manufacturer witnessed an 8.9% YoY jump in its total revenue from operations to ₹58,689.29 crore, compared to ₹53,904.71 crore in the second quarter of the 2024-25 financial year (Q2FY25).

Sequentially, its revenue increased by 10% from ₹53,178 crore in the previous quarter, primarily driven by higher deliveries in India and the Netherlands despite a drop in realisations.