Tata Steel’s Q1 profit rises 12%, misses estimates on Europe woes

Published 30 July 2026 · local

Mumbai: Tata Steel Ltd reported a modest increase in April-June profit and missed Street estimates as disruptions at its European operations and higher input costs

Mumbai: Tata Steel Ltd reported a modest increase in April-June profit and missed Street estimates as disruptions at its European operations and higher input costs offset the gains from stronger steel prices in India. The Mumbai-headquartered steelmaker reported a 12% year-on-year (y-o-y) increase in consolidated net profit to ₹2,318.35 crore in the first quarter, according to an exchange filing on Thursday. The company missed Bloomberg’s consensus estimate of ₹2,501 crore based on a poll of 22 analysts. “The global operating environment remained complex, with the impact of developments in West Asia on supply chains and input costs being more pronounced in the quarter. Our overseas operations also had to navigate operational disruptions,” T.V. Narendran, chief executive officer and managing director of Tata Steel, said in a media release, adding that “India continued to be the backbone” of the company’s performance. Consolidated revenue from operations rose 14% y-o-y to ₹60,794 crore, while earnings before interest, tax, depreciation and amortization (Ebitda) increased 25% to ₹9,370 crore. Rival JSW Steel, India’s largest steelmaker by capacity, reported a stronger quarter earlier this month, with consolidated net profit doubling y-o-y to ₹4,651 crore as higher steel prices boosted margins, and revenue from operations rising 10% to ₹47,364 crore.

According to Suman Kumar, metals and mining analyst at brokerage firm Philip Capital, the India business benefited from higher steel prices and a favourable product mix, but persistent challenges in Europe remained a concern. “Strong profitability in India helped offset the impact of higher input costs stemming from the Iran-West Asia conflict and weakness in Europe,” Kumar said. “Despite maintenance-related volume losses during the quarter, the company capitalised on favourable steel prices, supporting margins and limiting the impact on overall earnings.” Also Read | Tata Steel aims to repay overseas debt in two years; cuts FX borrowings Tata Steel’s domestic crude steel production and sales fell to 5.76 million tonnes per annum (mtpa) and 5.17 mtpa, respectively, from 6.22 mtpa and 6.19 million mtpa, due to maintenance shutdowns in its Meramandali and Kalinganagar plants. While maintenance shutdowns reduced volumes, higher domestic steel prices and a richer product mix helped preserve profitability. Production and deliveries are expected to normalise in the coming quarters, the company said in a statement. Tata Steel’s board has approved a capital expenditure of ₹33,873 crore towards the core project of steelmaking capacity expansion by 4.8 mtpa at Neelachal Ispat Nigam Limited, which will expand the plant’s total capacity to 6.2 mtpa.