Tata Steel Surpasses Expectations with 112% Surge in Profit to ₹1,301 Crore

Tata Steel reported a consolidated net profit of ₹1,301 crore for the January–March 2025 quarter, marking a 112.7% year-on-year (YoY) jump. This figure surpassed Bloomberg’s consensus estimate of ₹1,160 crore. The impressive performance was primarily driven by lower input costs and enhanced operational efficiency.

However, the company’s consolidated revenue fell short of expectations, coming in at ₹56,218 crore, slightly below the estimated ₹57,295 crore. This represented a 4.2% decline compared to the same quarter last year.

EBITDA Declines Marginally

The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) for the quarter stood at ₹6,559 crore, just under Bloomberg's projection of ₹6,612 crore. This marked a 0.6% decline YoY. Additionally, EBITDA per tonne dropped to ₹7,810 from ₹8,735 in the year-ago quarter.

Despite this, Tata Steel's CFO Koushik Chatterjee emphasized that the full-year EBITDA improved by 10%, largely due to higher volumes and cost optimizations, even though realizations were under pressure.

Operational Highlights in India

Tata Steel India delivered a strong operational performance, reporting revenue of ₹34,661 crore and EBITDA of ₹7,418 crore, resulting in an EBITDA margin of 21%. Crude steel production stood at 5.44 million tonnes, slightly lower than the previous quarter due to a planned blast furnace reline at the Jamshedpur plant. Deliveries reached 5.60 million tonnes.

The company achieved record volumes for its Tata Tiscon brand, registering a 19% YoY growth to 2.4 million tonnes. CEO & MD T.V. Narendran highlighted that FY25 was a transformative year, noting milestones such as commissioning India’s largest blast furnace at Kalinganagar and near full capacity utilization across Indian operations.

UK and Netherlands Operations

Tata Steel UK posted revenues of £551 million for the quarter, with EBITDA rising to £80 million from £34 million in Q4 FY24. Deliveries grew 12% sequentially to 0.63 million tonnes. Despite reducing fixed costs by £230 million, increased steel imports into the UK market offset these savings.

In the Netherlands, Tata Steel recorded revenue of €1,624 million and EBITDA of €14 million. Deliveries surged 14% quarter-on-quarter to 1.75 million tonnes. A major transformation program aimed at improving long-term competitiveness was also launched in April 2025.

Production and Deliveries Overview

Total steel deliveries during Q4 stood at 8.33 million tonnes, up from 7.98 million tonnes in Q4 FY24 and 7.72 million tonnes in Q3 FY25. Production was recorded at 7.45 million tonnes. The growth in deliveries reflects Tata Steel’s operational ramp-up in India and improved efficiency abroad.

Full-Year Financial Performance

For the full financial year (FY25), Tata Steel reported:

• Revenue: ₹2,18,543 crore

• EBITDA: ₹25,802 crore

• Net Profit: ₹3,421 crore

Capital expenditure for the March quarter was ₹3,220 crore, bringing the annual capex to ₹15,671 crore. The company’s net debt stood at ₹82,579 crore, with cash and cash equivalents amounting to ₹12,222 crore.

Focus on High-Value Segments and R&D

Tata Steel has increasingly focused on high-value steel applications, including automotive-grade steel and shipbuilding. Over ₹1,600 crore has been invested in R&D over the last five years to support innovation and competitiveness in these segments.