Tata Steel said on Saturday, Nov. 7, that its consolidated net profit for the July to September quarter rose 16.2% from a year earlier to INR 36.996 billion, as higher volumes and margins at home more than made up for weak results in Britain and the Netherlands. Revenue from operations rose 11.5% to INR 654.36 billion, according to figures reported by PSU Connect.

The result matters beyond Mumbai. Tata Steel is the Tata group's main listed bet on Indian infrastructure demand, and it is one of the few Asian steelmakers that also runs large plants in Europe, where carbon rules and energy costs are rewriting the economics of the industry. The quarter showed the two halves of the company moving in opposite directions, and the gap is what investors are pricing.

Overall results beat most market estimates, The Week reported, although the consolidated EBITDA margin of 16.1% came in slightly below forecasts. Consolidated EBITDA rose 17% to INR 106.65 billion, Upstox reported, citing the company's figures. Earnings per share rose to INR 2.94 from INR 2.49.

India business carries Tata Steel

The Indian operations generated revenue of INR 426.53 billion and EBITDA of INR 106.34 billion, a margin of 25%, according to Upstox. Crude steel output in India rose 7% from the June quarter to 6.18 million tonnes, and deliveries rose 16% to 5.98 million tonnes.

That works out to EBITDA of INR 17,790 a tonne in India, The Week reported, in what is usually a seasonally softer quarter. The automotive and special products unit had its best second quarter for volumes, at about 1.1 million tonnes, with sales of higher-end products up 26%.

Chief Executive T.V. Narendran said the company "delivered strong growth in deliveries and earnings this quarter." Chief Financial Officer Koushik Chatterjee said the rise in profitability came mainly from the strength of the India business, according to The Week.

Domestic rival JSW Steel did better on growth: its second-quarter net profit jumped 225% to INR 52.79 billion, The Week reported. Engineering group Larsen & Toubro also reported record order inflows this season.

Europe and the Netherlands audit flag

The picture in Europe was weaker. The Netherlands business posted EBITDA of INR 7.9 billion, down from INR 9.16 billion a year earlier, The Week said. In euro terms, Upstox put Dutch revenue at 1.395 billion euros and EBITDA at 72 million euros, helped by the restart of a sheet plant in early August.

The U.K. unit lost money again at the EBITDA level, with a loss of 56 million pounds on revenue of 411 million pounds and deliveries of 0.38 million tonnes, according to Upstox. In rupee terms the loss narrowed to INR 7.19 billion from INR 7.65 billion a year earlier, The Week reported. At Port Talbot in Britain, Tata Steel is replacing its blast furnaces with an electric arc furnace with financial support from the British government.

The auditors raised a sharper issue. In the standalone accounts, they gave a qualified opinion on Tata Steel's investment in subsidiary T Steel Holdings Pte. Ltd., carried at INR 590.78 billion, PSU Connect reported. The auditors cited significant uncertainties and said a probable material further fall in the investment's fair value had not been recognized. In the consolidated review, they pointed to signs of impairment at Tata Steel Nederland, which carries INR 332.73 billion of property, plant and equipment and INR 54.2 billion of goodwill. The reasons given were uncertainty over a tailor-made agreement with the Dutch government, higher decarbonization costs and rising interest rates. Management had not booked any adjustment as of Sept. 30.

Tata Steel, the Dutch government and the Province of North Holland have extended their joint letter of intent by five months to March 2027, The Week reported. It covers the closure of coke and gas plants, energy costs and the investment framework for the Dutch operations.

Debt rises as spending continues

Net debt rose to INR 914.23 billion at the end of September from INR 801.44 billion at the end of fiscal 2026. Group liquidity stood at INR 400.76 billion, including INR 103 billion of cash, and capital spending was about INR 32.8 billion in the quarter, according to Upstox. In India, the 4.8 million-tonne-a-year expansion at Neelachal Ispat Nigam has entered execution.

The board also said Noel Tata will retire as vice chairman and non-executive director at the close of business on Nov. 11 under the Tata group's governance guidelines, according to PSU Connect.

Investors welcomed the numbers. In a special Muhurat trading session on Sunday, Nov. 8, the shares rose as much as 3% and closed up 2.09% at INR 190.20 on the National Stock Exchange, giving the company a market value of about INR 2.38 trillion, Upstox reported. The stock remains about 15% below its 52-week high of INR 224.40, set on May 15.

The company expects higher volumes and margins in the second half of the fiscal year, The Week said. The next test for the Dutch business is the March 2027 deadline for a deal with the Netherlands government.