Tata Steel Q2 Results: Profit Up 18.2%; Vice-Chairman Noel Tata to Retire

Tata Steel Q2 results showed an 18.2% rise in consolidated net profit attributable to owners to ₹3,666.41 crore, as strong Indian volumes offset continued weakness at its UK business.

The steelmaker had posted a profit of ₹3,101.75 crore in the same quarter last year, and earnings were 58.1% higher than in the June quarter. Revenue from operations rose 11.5% year on year to ₹65,436.24 crore and was up 7.6% sequentially, according to Business Standard.

Alongside the numbers, Tata Steel said Noel Tata will retire as non-executive, non-independent director and vice-chairman of the company at the close of business on 11 November 2026, in line with the Tata Group Governance Guidelines. He joined the Tata Steel board in March 2022, when he was appointed vice-chairman. The move is part of his exit from six Tata Group company boards as he turns 70 on 12 November, the retirement age for non-executive directors under the group’s policy. Besides Tata Steel, he is stepping down as vice-chairman of Titan Company and from the boards of Trent, Voltas, Tata Investment Corporation and Tata International.

Tata Steel Q2 results: the key numbers

Consolidated EBITDA came in at ₹10,665 crore, up 14% from the previous quarter, while EBITDA per tonne stayed above ₹13,000. Deliveries for the quarter rose 9% sequentially to 7.92 million tonnes.

Total consolidated profit, which includes the share of minority interests, stood at ₹3,699.59 crore against ₹3,183.09 crore a year earlier, BusinessWorld reported. That is why some reports put the growth in Tata Steel net profit at about 16% rather than 18.2%.

Net debt stood at ₹91,423 crore, taking the net debt-to-EBITDA ratio to 2.4 times. The company spent about ₹3,280 crore on capital expenditure during the quarter and ₹6,860 crore in the first half of FY27.

India business carries the quarter

The India operations reported revenue of ₹42,653 crore, 22.6% higher than a year ago, and profit after tax of ₹5,055 crore, up 19.9%. EBITDA in India was ₹17,790 per tonne, with an EBITDA margin of 25%.

T V Narendran, CEO and Managing Director, said “India continued to be the cornerstone of our performance”, pointing to strong deliveries and earnings despite geoeconomic uncertainty and higher raw material costs.

In the Netherlands, revenue was ₹15,330 crore compared with ₹15,719 crore in the year-ago period. EBITDA slipped to ₹790 crore from ₹916 crore a year earlier.

According to Business Standard, higher India volumes and the normalisation of operations in the Netherlands helped offset elevated input costs during the quarter.

The UK unit remained a drag on the group. Its deliveries fell 22% from the previous quarter and revenue declined to ₹5,275 crore from ₹5,927 crore a year ago. The EBITDA loss narrowed to ₹719 crore from ₹765 crore a year earlier.

On the UK, Narendran said, “The prices are good, the spreads are good, but the volumes are not good,” Mint reported, adding that UK steel inventories stood at about 865,000 tonnes in September, nearly 60% above normal levels. The result shows how far the European turnaround still has to go even as the Dutch operations return to steadier production.

Why it matters for investors

Tata Steel is among India’s largest steel producers and also runs plants in the Netherlands and the UK, so its quarterly results are closely tracked as a gauge of domestic steel demand. This quarter, the Indian business clearly did most of the heavy lifting for the group.

The gap between a profitable India operation and a loss-making UK unit remains the central question for shareholders. Leverage of 2.4 times EBITDA will be watched as the company continues to invest, including the 4.8 MTPA expansion at Neelachal Ispat Nigam Ltd (NINL), which has entered the execution phase.

The steelmaker’s numbers add to a busy Q2 FY27 earnings season for India Inc, in which Reliance Industries posted a 40.6% jump in Q2 profit on its oil-to-chemicals business.

Also Read: Coal India Q2 Results: Profit Up 53% at ₹6,516 Crore | Tata Consumer Q2 Results: Profit Rises 16% to ₹470 Crore

What happens next

Investors got their first chance to react to the Tata Steel Q2 results in Sunday’s special Diwali Muhurat trading session, when the stock rose 2.09% to ₹190.20 even as the Sensex ended marginally lower, The Federal reported. Shareholders will look for signs that the Netherlands recovery can be sustained and that UK volumes can stabilise after a weak quarter.

Noel Tata’s retirement from the Tata Steel board takes effect at the close of business on 11 November. Detailed results are available on the Tata Steel investor relations page, and more corporate updates are in our business news section.