Tata Steel's India Steel Manufacturing Drives Q2 Growth

Tata Steel's India steel manufacturing operations played a major role in its financial performance during the second quarter of FY27.

The company reported a 14 percent sequential increase in consolidated EBITDA to Rs 10,665 crore.

India's operations contributed Rs 10,634 crore in EBITDA, supported by higher crude steel production and stronger deliveries.

The company also reported a 25 percent EBITDA margin in its domestic business, highlighting the strength of its Indian operations.

Alongside the improvement in production volumes, growth in specialized steel products and ongoing investments in manufacturing capacity are shaping Tata Steel's domestic business.

The company's latest results offer a closer look at how its Indian operations are supporting its overall performance.

How Did Tata Steel's Indian Operations Drive Q2 FY27 Performance?

India remained the main contributor to Tata Steel's quarterly performance, with revenue reaching Rs 42,653 crore compared with Rs 36,989 crore in the previous quarter. EBITDA also increased to Rs 10,634 crore from Rs 9,908 crore in Q1 FY27.

The improvement was supported by higher production and deliveries across its domestic manufacturing facilities.

Key operational figures for Q2 FY27 include:

• Crude steel production: 6.18 million tons, up 7 percent sequentially from 5.76 million tons.
• Steel deliveries: 5.98 million tons, compared with 5.17 million tons in the previous quarter.
• EBITDA per ton: Rs 17,790, reflecting the profitability of its Indian operations.
• EBITDA margin: 25 percent for the quarter.

The company's focus on steel manufacturing efficiency has helped improve production volumes and deliveries across its domestic facilities.

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Which Steel Segments Contributed to Tata Steel's Domestic Growth?

Beyond overall production, Tata Steel recorded strong performance in specialized and branded steel products. Its Automotive and Special Products business achieved its best-ever second-quarter volumes of approximately 1.1 million tons.

The company's high-end product sales grew 26 percent, supported by demand for specialized steel grades and improved production capabilities.

T V Narendran, Chief Executive Officer and Managing Director of Tata Steel, attributed the growth to stronger customer engagement, supply-chain resilience and the company's focus on expanding its product portfolio.

He also highlighted the contribution of automotive and special products to domestic volumes.

How Is Tata Steel Strengthening Its Indian Manufacturing Footprint?

Alongside improving production, Tata Steel is investing in additional capacity and downstream manufacturing facilities. The company spent Rs 3,280 crore on capital expenditure during Q2 FY27.

Some of its major ongoing projects include:

• Neelachal Ispat Nigam Limited (NINL): A 4.8 MTPA capacity expansion that has entered the execution phase.
• Hot Rolled Pickling and Galvanising Line: A 0.7 MTPA downstream project aimed at strengthening its value-added steel portfolio.
• Tinplate expansion: An additional 300 kt capacity project to support its tinplate business.

According to Narendran, construction is progressing on the downstream projects, while the NINL expansion is moving ahead as part of the company's volume and value growth plans.

Tata Steel's steel manufacturing operations in India continue to play a central role in strengthening its consolidated financial performance.

With higher domestic production, growing specialized steel sales and capacity expansion projects underway, the company is continuing to build on its Indian manufacturing presence.