Скачать или смотреть Tata Steel's Soaring Profits: 116% Net Profit Surge & Strategic Margin Expansion

Tata Steel delivered a strong consolidated financial performance in Q1 FY26, marked by a soaring Net Profit of Rupees 2,007 crore (up 116.5% YoY) and an 11% QoQ increase in EBITDA to Rupees 7,480 crore. This profitability surge was largely driven by robust cost efficiencies and the initial impact of its targeted cost transformation program, aiming for Rupees 11,500 crores in savings across geographies.
While revenue declined due to planned maintenance shutdowns like the G blast furnace relining, the company's Net Debt remained manageable at Rupees 84,835 crore, with a stable Net Debt/EBITDA ratio. Management actively focuses on optimizing capital structure, onshoring debt, and ensuring adequate liquidity.
Key strategic initiatives underpin long-term growth and profitability. These include the transition of UK operations to Electric Arc Furnaces (EAF) for decarbonization and improved profitability, alongside significant capacity expansion in India at Kalinganagar and upcoming facilities.
The outlook for Q2 FY26 expects Indian realizations to decline, but this may be cushioned by post-monsoon demand recovery and falling coking coal prices. The stock's valuation is considered "quite good", trading at 13 times FY27E earnings and 6.6 times EV/EBITDA. Overall, Tata Steel is effectively navigating the steel environment through strategic initiatives and operational efficiency