Tata Steel shares in focus as Q3 net profit soars 723% to Rs 2,689 crore

Shares of Tata Steel, one of India’s largest steelmakers, are likely to be in focus on Monday, February 9, after the company reported a sharp surge in its December quarter earnings. Consolidated net profit attributable to owners of the company jumped 723% YoY to Rs 2,689 crore from Rs 327 crore a year ago.

Revenue from operations rose 6% YoY to Rs 57,002 crore in Q3FY26 compared with Rs 53,648 crore in the corresponding quarter last year. On a sequential basis, however, profit after tax declined 13% from Rs 3,102 crore in Q2FY26, while revenue fell 3% from Rs 58,689 crore in the July–September quarter.

EBITDA stood at Rs 8,309 crore, up 39% YoY, with margins around 15%. In India, revenue came in at Rs 35,725 crore and EBITDA at Rs 8,291 crore, translating into a margin of 23%. Crude steel production in India increased 12% YoY to 6.34 million tons, while deliveries rose 14% YoY to a record 6.04 million tons, the company’s highest-ever quarterly deliveries.

In the Netherlands, revenue was €1,354 million with EBITDA of €55 million. Liquid steel production stood at 1.68 million tons and deliveries at 1.40 million tons. In the UK, revenue was £468 million, while EBITDA loss widened to £63 million amid weak demand and continued imports. Deliveries were 0.52 million tons.

Capital expenditure during the quarter was Rs 3,291 crore, taking total capex for 9MFY26 to Rs 10,370 crore. Net debt declined by Rs 5,206 crore QoQ to Rs 81,834 crore.

In December 2025, Tata Steel reaffirmed its long-term India growth strategy, prioritising investments in volume expansion, value-added downstream products, mining assets and infrastructure. As part of this strategy, the company consolidated its stake in Tata Steel Colors Pvt Ltd and completed the acquisition of a 50.01% stake in Thriveni Pellets Pvt Ltd, which holds 100% equity in Brahmani River Pellets Pvt Ltd.

Commenting on the results, CEO and MD T V Narendran said the global operating environment continues to be shaped by tariffs, geopolitical shifts and policy divergence. He noted that steel markets were impacted by elevated Chinese exports, which reached 119 million tons and exceeded the 2015 peak. Despite this, Tata Steel reported strong performance, with India crude steel production up 12% and deliveries rising 14% YoY, crossing 6 million tons in a quarter for the first time.

Automotive volumes grew 20% YoY, while the retail segment also strengthened. Narendran added that overseas deliveries were 0.52 million tons in the UK and 1.40 million tons in the Netherlands. He emphasised the need for supportive policy frameworks to enable a sustainable operating model, noting that while sentiment in Europe has improved recently, the UK market remains weak and requires revisions to the quota framework to reflect prevailing conditions.

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