Tata Steel shares slip over 1% even as Q2 PAT grows over fourfold to ₹3,183 crore; here is why

The stock witnessed selling pressure after T. V. Narendran, CEO & MD of Tata Steel, as reported by CNBC-TV18 on Thursday, said it was difficult for the company to say if UK EBITDA will turn positive by Q4 and that the UK remains a vulnerable market for the company.

The scrip settled at ₹176.55 on the NSE, down 1.15%.

Tata Steel Q2 Results: Key numbers

The steel major on Wednesday reported an over fourfold jump in consolidated net profit to ₹3,183.09 crore in the September quarter, mainly supported by revenues from the India business.

It had clocked a net profit of ₹758.84 crore in the July-September period of FY25, the company said in an exchange filing.

Tata Steel increased its total income to ₹59,052.84 crore against ₹54,503.30 crore in the second quarter a year ago, posting a rise of over 8% year-on-year.

The company earned a revenue of around ₹38,592 crore from India operations, which includes Neelachal Ispat and Nigam Ltd (NINL).

At an operational level, its EBITDA (earnings before interest, tax, depreciation, and amortisation), also known as operating profit, stood at ₹9,106 crore, marking a 46% annual increase from ₹6,224 crore in the year-ago period. Its EBITDA margin improved by 145 basis points (bps) QoQ to 16% in Q2FY26.

Tata Steel Q2 Results: What management said

In a statement, Tata Steel CEO & MD T V Narendran said, "The global operating environment remained challenging with a persistent overhang of tariffs, geopolitical tensions and elevated steel exports. Despite this, Tata Steel delivered a resilient performance, with the EBITDA margin improving for the second consecutive quarter."

On offshore decarbonisation projects, the CEO said that the company remains focused on transitioning its UK and Netherlands businesses to economically and environmentally viable operations.

"In September 2025, we signed a non-binding Joint Letter of Intent with the Government of the Netherlands and the Province of North Holland on an integrated health measures and decarbonisation project," Narendran said.

Tata Steel ED and CFO Koushik Chatterjee said, "We are closely monitoring policy developments in the EU and the UK and will look to prioritise, optimise and sequence the decarbonisation capex spend such that it is affordable to all stakeholders."

In line with efforts to optimise the debt portfolio, Chatterjee said that the company reduced TSUK (Tata Steel UK) debt by 540 million pounds during the quarter, and "our consolidated gross debt has decreased by around ₹3,300 crore quarter-on-quarter (QoQ) to ₹95,643 crore."

Tata Steel Q2 earnings: Other key highlights

In India, crude steel production was up 8% QoQ to 5.65 million tonnes, and deliveries were up 17% QoQ to 5.55 million tonnes, aided by a rise in domestic deliveries.

From the Netherlands, the revenues were 1,551 million euros, and EBITDA was 92 million euros. Liquid steel production was 1.67 million tonnes, and deliveries were 1.54 million tonnes.

UK revenues were at 505 million pounds, and EBITDA loss stood at 66 million pounds. Deliveries stood at 0.57 million tonnes and were marginally lower due to subdued demand.

The company has spent ₹3,250 crore on capital expenditure during the quarter and ₹7,079 crore for the half-year. Net debt stands at ₹87,040 crore.

As part of growing the India downstream portfolio, Tata Steel has executed a share purchase agreement with BlueScope Steel to acquire the remaining 50% stake in Tata BlueScope Steel Private Limited.

The sale is subject to regulatory approvals. Earlier, Tata Steel Limited signed an Asset Transfer Agreement with Indian Metals & Ferro Alloys Ltd (IMFA) for the sale of the Ferro Alloy Plant at Jajpur, Odisha, for a base consideration of ₹610 crore.