India: Tata Steel Q4FY'26 crude steel output rises 14% y-o-y, deliveries up 11%

• Cost transformation savings near target achievement
  
  
• Downstream expansion and retail network strengthen
  
  

Steel manufacturer Tata Steel reported a 14% rise in crue steel production and improved operational performance during Q4FY'26, supported by higher steel realisations, stronger deliveries, downstream expansion, and continued cost optimisation initiatives. The company also highlighted progress in sustainability, digital transformation, and capacity expansion projects during the quarter.

Highlights

Production, deliveries and revenue improve: Tata Steel's India crude steel production stood at 6.22 million tonnes (mnt) in Q4FY'26, marginally down by 2% q-o-q from 6.34 mnt in Q3FY'26, but higher by 14% y-o-y compared with 5.44 mnt in Q4FY'25. On a consolidated basis, production stood at 8.23 mnt in Q4FY'26, compared with 8.38 mnt in Q3FY'26 down 2% q-o-q and 7.45 mnt in Q4FY'25 up 10% y-o-y. For the full year FY2026, consolidated production stood at 31.67 mnt, up from 30.92 mnt in FY2025. India deliveries increased by 2% q-o-q to 6.19 mnt from 6.04 mnt in Q3FY'26 and rose 11% y-o-y from 5.60 mnt in Q4FY'25, supported by strong domestic demand and downstream growth. Annual India deliveries touched a record 22.5 mnt in FY2026. Consolidated revenue from operations also increased by 11% q-o-q to INR 63,270 crore from INR 57,002 crore in Q3FY'26, aided by improved steel realisations in India and higher volumes in India and the Netherlands. Revenue was up 13% y-o-y from INR 56,218 crore.

EBITDA rises despite higher raw material costs: India EBITDA increased by 19% q-o-q to INR 9,841 crore in Q4FY'26 from INR 8,291 crore in Q3FY'26 and rose 33% y-o-y from INR 7,418 crore in Q4FY'25. Consolidated EBITDA improved by 20% q-o-q and 47% y-o-y to INR 9,953 crore. However, consolidated raw material costs also moved higher to INR 24,218 crore from INR 22,987 crore in Q3FY'26, mainly due to increased coking coal consumption costs in India and higher substrate purchases in the UK. Tata Steel stated that its FY2026 cost transformation programme delivered savings of around INR 10,868 crore, achieving nearly 95% of the targeted savings, while an additional savings target of INR 7,140 crore has been set for FY2027.

Expansion and downstream growth continue: During the quarter, Tata Steel commissioned its 0.75 mnt scrap-based Electric Arc Furnace (EAF) at Ludhiana with an investment of around INR 3,200 crore. The company also continued ramp-up of the 2.2 mnt CRM complex at Kalinganagar and reiterated plans for the proposed 4.8 mnt expansion at NINL. Strong growth was reported across downstream businesses including tubes, tinplate, wires, and colour-coated products. Tata Steel also highlighted faster approvals for advanced automotive grades from Kalinganagar's CAL and CGL lines, with downstream products contributing 53% of auto sales during FY2026.

Digital, retail and sustainability initiatives gain momentum: Tata Steel's digital platforms achieved sales worth around US$1 billion during FY2026, while its retail network expanded to nearly 97% of districts across India. The Aashiyana platform also recorded strong GMV growth during the year. On the sustainability front, the company reiterated its net-zero target for 2045 and highlighted initiatives including low-carbon zinc usage, biochar adoption, renewable energy integration, and the commissioning of the Ludhiana EAF facility.

Balance sheet remains healthy amid global volatility: Net debt declined by around INR 2,285 crore y-o-y to INR 80,144 crore as of March 2026, while group liquidity remained strong at INR 45,237 crore. The board also recommended a dividend of INR 4/share for FY2026. Tata Steel noted that global steel markets remained volatile amid trade protectionism, supply chain disruptions, and rising energy costs linked to the West Asia conflict. However, tighter safeguard measures in Europe and the UK are expected to support regional steel pricing trends going forward.