Tata Steel ended FY26 on a strong note, aided by higher volumes and firm steel prices

India’s second-largest steelmaker, Tata Steel, saw its revenue for the 2026 fiscal year beat street expectations, driven by strong volumes and higher steel prices.

Consolidated revenue from operations rose 6% to ₹2.32 trillion in FY2026, beating the ₹2.31 trillion projection of 37 analysts polled by Bloomberg.

The Mumbai-based company also reported a threefold jump in consolidated net profit, attributable to the owners, of ₹10,793.87 crore in FY26 compared to FY25, as per the exchange filings.

Earnings before interest, tax, depreciation and amortization (Ebitda) grew 36% to ₹34,352.44 crore in FY26 from ₹25,298.45 crore in FY25.

“FY2026 was characterised by elevated geoeconomic uncertainty, with supply-chain and tariff-led trade disruptions impacting global steel markets. Against this backdrop, our sustained focus on operational discipline and cost transformation continued to deliver performance across our global businesses," said T.V. Narendran, chief executive officer & managing director of Tata Steel, in a statement.

Tata Steel also flagged rising concerns around the ongoing West Asia conflict, saying disruptions in energy, oil, freight and currency markets had started impacting supply chains and input costs during the March quarter, and the pressure was expected to continue into FY27.

“The global business environment has again become very challenging with the impact of the West Asia conflict on energy, oil, trade and currency markets,” Koushik Chatterjee, executive director and chief financial officer of Tata Steel, said in a statement. The steelmaker is “alert and actively monitoring performance triggers across geographies”.

Netherlands revenues stood at €6,028 million with Ebitda of €267 million, nearly tripling year-on-year, while UK revenues were £1,978 million and Ebitda losses almost halved to £217 million, according to the company statement.

Uncertainty in Netherlands

However, Tata Steel warned that its Netherlands business continued to face a difficult regulatory environment. The company said local authorities had indicated plans to revoke operating permits and initiate early closure of coke and gas plants at the IJmuiden site over environmental concerns. Tata Steel Netherlands has already paid more than €20 million in penalties during FY26 for emissions from its facilities.

The steelmaker also flagged that these developments create a ‘material uncertainty’ around the financial stability and ongoing operations of the Netherlands subsidiary as an entity.

Tata Steel Netherlands “is facing multiple uncertainties with relation to the environmental footprint of its assets in a complex and evolving regulatory landscape, and this in turn is impacting the operating rhythm of the business,” Chatterjee said in the statement.

“Tata Steel reported a strong set of numbers driven by healthy volume growth, cost rationalisation measures and higher steel prices.” said Suman Kumar, metals and mining analyst at Philip Capital. “With the UK overheads now largely behind it following the shutdown of the loss-making blast furnaces and legacy cost clean-up, the company’s losses have narrowed significantly, supporting a sharp improvement in profitability.”

On a consolidated basis, Tata Steel reported FY26 steel production of 31.67 million tonnes and deliveries of 31.97 million tonnes.

For the quarter ended March 2026, the steelmaker reported a 12.5% jump in revenue to ₹63,270.13 crore compared to the same quarter a year ago. Net profit more than doubled to ₹2,925.74 crore in Q4FY26 compared to ₹1,300.81 crore in Q4FY25.

“In the last quarter, developments in West Asia began to exert pressure on supply chains and input costs, and these pressures are continuing into FY2027. We are pursuing calibrated actions to mitigate risks in this regard,” Narendran said in the statement.