India: Tata Steel achieves highest-ever production, deliveries in FY’25

• FY’25 sees capex of INR 15,671 crore
• EBITDA drops by 5% y-o-y in FY’25

Tata Steel Limited, one of India’s leading private steelmakers, posted its highest-ever crude steel production of 21.68 million tonnes (mnt) in FY’25. It also achieved a record peak in deliveries, which totalled 20.94 mnt in the same period. Notably, Tata Tiscon achieved its best-ever sales volumes with 19% y-o-y growth to 2.4 mnt.

Tata Steel has invested over INR 1,600 crore in R&D over five years, enabling end-to-end hydrogen transport capabilities and localisation of CP780 grade steel. It has also entered India’s commercial ship-building segment.

Project updates

• Efforts to ramp up 5-mtpa blast furnace at Kalinganagar are underway.
• Phased commissioning of the 2.2 mtpa cold rolling mill (CRM) complex is underway, with continuous galvanising lines expected to be commissioned in the coming months.
• Construction of the electric arc furnace (EAF) in Ludhiana is in progress.
• Capital expenditure (capex) stood at INR 3,220 crore for the quarter and INR 15,671 crore for FY’25.
• The company expects to enhance its product mix with the upcoming 0.5 mnt combi mill in Jamshedpur, which will utilise steel produced at the former Usha Martin plant, now known as Tata Steel Gamharia.

Highlights

Production rises y-o-y: Tata Steel’s crude steel production rose 4% y-o-y to 21.68 mnt in FY’25 against 20.78 mnt in the same period last year. During Q4FY’25, production edged up 1% y-o-y to 5.44 mnt as compared with 5.40 mnt in Q4FY’24. This was supported by the smooth ramp-up of the new blast furnace at Kalinganagar and near-100% capacity utilisation across other operations.

A blast furnace at Jamshedpur has been shut down for relining. Work is expected to be completed by July 2025.

Sales up y-o-y: The company’s sales increased by 5% to 20.94 mnt in FY’25 from 19.91 mnt in FY’24. Likewise, sales increased to 5.6 mnt during the final quarter of FY’25 as against 5.42 mnt in the Q4FY’24. Export volumes increased 20% y-o-y to 1.2 mnt in FY’25 from 1 mnt in FY’24.

EBITDA declines y-o-y: Tata Steel’s EBITDA declined 5% y-o-y to INR 29,172 crore in FY’25 as compared with INR 30,786 crore in the preceding year. Similarly, there was a drop of 10% y-o-y to INR 7,426 crore in Q4FY’25 as against INR 7,820 crore in Q4FY’24.

Notably, EBITDA declined despite a 5% increase in sales volumes, lower raw material and operating costs, and strategic initiatives. Overall, total costs increased by over INR 5,700/t.

Raw material costs: Coking coal was about $10/t lower on a consumption basis in Europe and India, though prices increased in the last few weeks.

Iron ore costs are relevant only for Europe, specifically the Netherlands, as UK blast furnaces are shut. Consumption cost in the Netherlands is expected to be $10/t higher.

Note: All figures mentioned are for India (India includes Tata Steel Standalone and Neelachal Ispat Nigam Limited).