Tata Steel Reports Strong Performance at 119th Annual General Meeting

Addressing shareholders at its 119th Annual General Meeting, Tata Steel outlined a year marked by significant operational achievements despite volatile global market conditions.

The fiscal year 2026 began on an optimistic note, with global markets anticipating steady expansion, moderating inflation, and improved credit conditions. Positive momentum came from trade developments including the India-EU trade agreement and an interim India-US trade deal. However, the geopolitical tensions in West Asia starting in March disrupted this trajectory, triggering stagflation, output contraction, and inflationary pressures. India's economy, nonetheless, demonstrated resilience by expanding 7.6% during the fiscal year, underpinned by robust domestic consumption and manufacturing activity.

The international steel sector faced headwinds during fiscal 2026, with global production declining 2% to 1.85 billion tonnes in calendar year 2025, primarily reflecting China's economic deceleration and subdued demand from Western markets, compounded by fluctuating input costs and regulatory challenges. India's steel sector, by contrast, exhibited strength, expanding production by 10.7% to 168.4 million tonnes and demand by 7.6% to 163.7 million tonnes, sustained by consistent consumption across infrastructure, construction, automotive, and industrial applications.

Tata Steel's financial performance reflected this mixed environment. Consolidated revenue increased 6% to ₹2,32,140 crore, bolstered by record crude steel production of approximately 23.4 million tonnes and deliveries reaching around 22.5 million tonnes domestically. Consolidated EBITDA surged 35% to ₹34,848 crore, while profit after tax climbed 243% to ₹10,886 crore.

The company's European operations showed marked improvement through structural reforms. In the Netherlands, EBITDA tripled to Euro 267 million, while the UK operations reduced EBITDA losses by half. Within India, revenues reached ₹1,40,302 crore with EBITDA of ₹34,272 crore, up 17%, as EBITDA margins expanded to 24% through cost optimization, superior product composition, and increased output volumes. The company's consolidated net debt decreased to ₹80,144 crore, reinforcing balance sheet strength.

Directors have recommended a dividend of ₹4 per equity share for fiscal 2026.

A significant achievement came with the commissioning of Phase II expansion at Kalinganagar, elevating total capacity to 26.1 million tonnes per annum (MTPA) and increasing site capacity from 3 to 8 MTPA. The facility now houses India's largest blast furnace and cutting-edge cold rolling equipment, positioning the company competitively in premium segments including automotive and defence manufacturing. This expansion represents progress toward the company's objective of reaching 40 MTPA capacity.

The company accelerated its focus on high-margin products and digital platforms, recording robust expansion in defence and shipbuilding sectors. Downstream operations expanded through investments in tubes, tinplate, and wire production. Strategic moves included consolidating ownership in Tata Steel Colors and acquiring a controlling interest in Thriveni Pellets, both deemed essential for sustained competitiveness. The newly operational 0.75 MTPA Electric Arc Furnace in Ludhiana and planned expansion of NINL are expected to strengthen the company's long products segment. The Board approved the amalgamation of NINL into Tata Steel to unlock operational efficiencies and streamline organizational structure.

European transformation accelerated with groundbreaking ceremonies for the GBP 1.25 billion EAF Project at Port Talbot, representing the UK's most ambitious low-carbon steelmaking conversion, executed collaboratively with the UK Government. Engineering design and construction activities are underway.

Tata Steel Netherlands confronts a challenging regulatory landscape, as certain environmental standards now surpass European Union requirements. Emission regulations have tightened to levels where some legacy assets lack viable compliance pathways within regulatory timelines. The company is collaborating with Dutch authorities and stakeholders to chart a course that meets environmental standards while remaining financially sustainable and long-term viable. During the year, Tata Steel Netherlands acquired Vattenfall's power generation facilities to reinforce energy independence and facilitate its transition objectives.