India: Tata Steel reports q-o-q increase in production, deliveries in Q2FY’26

• Revenue rises 12% q-o-q on strong domestic sales
• EBITDA jumps by 16% q-o-q, 25% y-o-y in Q2FY’26

India’s leading private steelmaker, Tata Steel, increased its crude steel production and sales volumes q-o-q in Q2FY’26. Moreover, EBITDA and revenue also increased on a q-o-q basis. This rise in revenue was due to a rise in domestic deliveries.

Highlights

Production climbs up q-o-q: Tata Steel’s crude steel production climbed up by 7% q-o-q to 5.4 mnt in Q2FY’26 from 5.07 mnt in the previous quarter. Similarly, on a y-o-y basis, the same increased by 7% as compared with 5.06 mnt in Q2FY’25.

Sales increase q-o-q: Sales volumes surged by 17% to 5.55 mnt in Q2FY’26 as against 4.75 mnt in the last quarter. The same went up by 9% from 5.11 mnt in Q2FY’25.

EBITDA rises q-o-q: The company’s EBITDA jumped by 16% to INR 8,394 crore in Q2FY’26 from INR 7,263 crore in Q1FY’26. On a y-o-y basis, the same increased by 25% from INR 6,734 crore in Q2FY’25.

Revenue from operations rises: Revenue increased by 12% q-o-q to INR 34,680 crore in Q2FY’26 from INR 31,014 crore as seen in the previous quarter. This was aided by a 20% rise in domestic deliveries, which was partly offset by a drop in steel realisations.

Raw material costs: Raw material costs rose by 10% q-o-q to INR 12,961 crore in Q2FY’26 against INR 11,822 crore in the last quarter, primarily due to improved production and higher purchases of rebars from NINL.

Expansion projects: Tata Steel is boosting its production capacity, with a 5 mnt/year expansion underway at Kalinganagar and a 0.75 mnt/year electric arc furnace project at Ludhiana, which is 90% complete. The 2.2 mnt/year cold rolled medium complex with Continuous Galvanising Line (CGL) #1 has gained OEM approvals, while CGL #2 is expected to be commissioned in Q3FY’26. Additionally, tinplate capacity is being increased from 0.4 mnt/year to 0.7 mnt/year.