Tata Steel Q3 Results 2026 Highlights: PAT surges 825% YoY to ₹2730 crore

Looking ahead, the proposed 4.8 MTPA expansion at NINL and the 0.75 MTPA EAF at Ludhiana will significantly enhance our long products portfolio. At the same time, our strategic partnership in Maharashtra will fortify raw material needs beyond 2030 and help cater to the growing demand in western and southern India. In our overseas operations, deliveries stood at 0.52 million tons in the UK and 1.40 million tons in the Netherlands. Supportive policy frameworks are vital to transition to a more sustainable operating model. While the recent progress in Europe has supported sentiment, the UK market continues to be depressed, and the quota framework needs to be revised to reflect underlying market conditions.

— T V Narendran, Chief Executive Officer & Managing Director

T V Narendran, Chief Executive Officer & Managing Director said: Our global operating environment continues to be shaped by tariffs, geopolitical shifts and policy divergence.

Steel markets were impacted by elevated finished steel exports from China, which at 119 million tons surpassed the 2015 peak. Against this backdrop, Tata Steel delivered a strong performance in this quarter, with India crude steel production rising 12% while deliveries grew faster at 14% YoY, surpassing the 6 million tons mark in a quarter forthe first time.

We continued to strengthen our market leadership across chosen segments, supported by capacity expansion and a focused downstream strategy. Automotive volumes grew 20% YoY, while our retail vertical gained further momentum.

In Dec’25, Tata Steel Board affirmed the long-term growth strategy for India business. Tata Steel will prioritize investments for a) volume growth, b) value added downstream portfolio, c) identified mining assets and infrastructure to serve the needs of the India business, and d) new to the world low carbon & low capital intensity process technologies for sustainable steel making of the future.

As part of the above stated objective, Tata Steel has consolidated its stake in color-coated business, Tata Steel Colors Pvt Ltd. The company also completed the acquisition of 50.01% stake in Thriveni Pellets Private Limited, which in turn holds 100% equity stake in Brahmani River Pellets Private Limited.

Consolidated Revenues for the first nine months of the financial year were ₹1,68,870 crore and EBITDA was ₹24,894 crore. EBITDA improved 31% YoY despite the challenging operating environment.

India revenues were ₹1,01,648 crore and EBITDA was ₹24,431 crore, which translates to an EBITDA margin of 24%. EBITDA improved by 12% YoY.

Netherlands revenues were €4,424 million and EBITDA was €210 million. EBITDA nearly tripled YoY.

UK revenues were £1,509 million and EBITDA loss was £170 million. EBITDA improved by 44% YoY.

The company has spent ₹3,291 crores on capital expenditure during the quarter and ₹10,370 crores in 9MFY26. Net debt declined by ₹5,206 crores QoQ to ₹81,834 crores.

Crude steel production was up 12% YoY to 6.34 million tons. Improved production led to ‘best-ever quarterly’ deliveries to the tune of 6.04 million tons, up 14% YoY.

India revenue for Tata Steel came in at ₹35,725 crore and EBITDA was ₹8,291 crore, which translates to a margin of 23%. Meanwhile, Netherlands revenues were €1,354 million and EBITDA was €55 million. UK revenues were £468 million and EBITDA loss stood at £63 million.

Consolidated EBITDA for Q3 FY26 was ₹8,309 crore with a margin of around 15%. EBITDA improved by 39% YoY.

The revenue from operations came in at ₹57,002 crore, recording a growth of 6% as against ₹53,648 crore in the same period a year ago.

Tata Steel posted a massive 825% YoY rise in its net profit to ₹2730 crore for the quarter ended December 2025. Meanwhile, the figure stood at ₹295.49 crore in the same period a year ago.

Nuvama sees 36% fall in adjusted net profit to ₹792 crore while revenue could fall 7% to ₹54364 crore.

Tata Steel Europe EBITDA/t is likely to turn negative at USD12/t compared with +USD8/t in Q2FY26. UK EBITDA loss shall stay flat QoQ, but Netherlands EBITDA to decrease to INR5.6bn (Q2: INR9.2bn) and EBITDA/t of USD45 (Q2: USD68/t) amid lower steel prices. Consolidated adjusted EBITDA to decline 10% QoQ to INR81bn.

— Nuvama Research

Standalone adjusted EBITDA/t is likely to decrease by INR1,679 QoQ to INR13,195 owing to a fall in blended steel realisation/t (down INR1,700/t QoQ) and increase in coking coal cost by USD6/t QoQ. The sales volume is likely to increase 9% QoQ to 6.04mt.

— Nuvama Research

Commentary on Europe operations – CABM, import quota cut will be critical, said Motilal Oswal. It also said that the management guidance on volume/ASP/cost and capex is among other key monitorables for investors.

Domestic brokerage Motilal Oswal Financial Services sees a 255.5% YoY growth in PAT to ₹2410 crore while the figure is expected to declined 26% QoQ. It further estimates net sales at ₹58,770 crore, a growth of 9.5% YoY and 0.1% QoQ.

KIE estimates Europe to report EBITDA loss of US$12/ton (+US$8/ton in 2QFY26), with a decline in Dutch EBITDA of US$43/ton (+US$68/ton in 2QFY26) and higher UK losses at US$166/ton ((-)US$154/ton in 2QFY26).

KIE expects standalone volumes to increase by 14.4% YoY (+9% QoQ) to 6.0 mn tons. India EBITDA/ton to decrease by 9.7% QoQ (+15% YoY) to Rs13,033/ton, led by lower realisations and higher coal cost.

Domestic brokerage Kotak Institutional Equities (KIE) estimates standalone steel realisations to decrease by 3.1% QoQ (-2.2% YoY) on account of price weakness, followed by back-ended price hikes during the quarter.

Tata Steel share price declined 1.59% to ₹194.50 ahead of the Q3 results announcement later today. Analysts see 200-600% YoY growth in its PAT during the quarter ended review.

Motilal Oswal said that it has introduced Tata Steel into the portfolio and booked profits in Jindal Stainless.

Tata Steel is one of the largest players in India's steel sector and is set to benefit from improving steel price realizations, operating efficiencies, and the strong domestic demand outlook.

While near-term challenges persist due to global uncertainty around tariff escalations, the long-term outlook for Tata Steel remains strong.

The Indian business is expected to continue its strong performance, and an improvement in the European business performance is likely to support overall earnings.

Tata Steel will announce the financial results for the third quarter ended December 2025 today.

“A meeting of the Board of Directors of Tata Steel Limited (‘Company’) will be held on Friday, February 6, 2026, inter alia, to consider and take on record the audited Standalone and unaudited Consolidated financial results of the Company for the quarter and nine months ended December 31, 2025,” the company announced in January.