Tata Steel

“It may be pushed by one quarter and may not be in 2Q but 3Q or 4Q. In the second half, we should be able to be closer to breakeven.”

“But we expect volumes and EBITDA to be better in 2Q than 1Q, lower than what we would like it to be, but certainly starting to move in the right direction.”

“But I think we mentioned before, while there will be some margin compression in India, because there will be additional volumes in 2Q compared to 1Q, we expect the rupees crore to be better in 2Q than in 1Q in India.”

“Yeah, NINL is 48 months is what we have committed and within 48 months, we'll have the plant up.”

“We have done a fair bit of almost all of the engineering studies, so we know now exactly what needs to be done but we will not move till we have clarity on many of these things.”

“But if I were to talk about the expansion of mines, it's not covered in the capex that I talked about. It is in addition to that.”

“Close to half of the equipment has already been manufactured and is being readied in parts for delivery.”

“The point that you mentioned on NINL, NINL you should actually look at it as a greenfield project. Phase two of Kalinganagar was a bolt-on from phase one.”

“The 0.3 MTPA capacity expansion in tinplate and the hot roll pickling and galvanising project of 0.74 MTPA are both on track for completion within the next 30 months.”

“The 0.5 MTPA combi mill in Jamshedpur has been commissioned and is midway through its ramp up.”

“We plan to add about 0.42 million tons of tube capacity also during FY2027 through an asset light model.”

“These currently produces less than 5 million tons. Over the next few years, we expect to take this to about 30 – 35 million tons.”

“So, there is a roadmap from 45 – 50 MTPA already available with existing assets.”

“The automotive & speciality business delivered best-ever 1Q volumes. It had a 21% YoY growth in high-end sales.”

“As you know, we have a market share of about 50% in the auto sector.”

“Our well-established brands, Tata Tiscon, grew volumes 33% YoY, supported by our extensive distribution network which today covers 97% of India's districts.”

“Our digital platforms, Aashiyana and DigECA, continue to scale and combined GMV was around Rs 2,200 crores for the quarter, which is up 61% YoY.”

“We hope to ensure that by 3Q, 4Q, we should be on normal levels.”

“However, the near-term market momentum remains a bit subdued, in part because of the more than average inventory levels and subdued demand on underlying basis.”

“So, I think there is still fairly a long runway as far as price increases are concerned in the European market.”

“We welcome the recent revisions to safeguard measures, including a 51% reduction in tariff-free quotas and higher duties.”

“reduced tariff free import quotas by about 3.3 to 3.4 million tons, effective 01 July, and applied a 50% tariff on imports beyond quota levels.”

“We see that as we move deeper into the year, there is an uptick, especially when the contract renegotiation season starts in November, due to the CBAM impact as well as the quota impact.”

“We were able to offset the impact of the lower volumes because of an increase in the realisations to the tune of about Rs. 6,000 per ton, or Rs. 5,990 per ton to be more precise over 4Q.”

“So, this has helped us deliver an EBITDA margin of 27%, which is higher than the 10-year average.”

“On per ton basis, 1Q EBITDA improved by about Rs. 2,400 per ton YoY and by about Rs. 1,490 per ton on QoQ basis and is presently tracking close to about Rs 13,000 per ton consolidated levels, which is effectively a 15% margin.”

“EBITDA per ton improved significantly from about Rs. 15,907 per ton in 4Q to about Rs. 19,162 per ton in 1Q.”

“However, this was partly offset by the rise in cost by about Rs. 6,700 per ton due to lower volumes during the quarter, due to annual shutdowns and operational snags, which are now mostly resolved.”

“On the balance sheet, net debt stands at about Rs. 84,000 crores and the net debt to EBITDA is comfortably at 2.3x, which is within our stated range of 2.5 to 3x through the cycle.”

“Our group liquidity remains strong at about Rs. 45,950 crores, which includes about Rs. 13,221 crores of cash and cash equivalents.”

“In 4Q, the strong deliveries also led to an inventory drawdown, and so some of the production went into building up the inventory to optimal levels across the supply chain.”

“The stated range of net debt to EBITDA factors in the funding requirements for all the ongoing and recently announced expansion projects.”

“The merger process of NINL with Tata Steel is also progressing as per plan and is expected to be completed by the end of the current financial year.”

“So therefore, we don't intend to participate. We will be focused only on our asset in Port Talbot, where we are building the EAF.”

“It is important to emphasise that this is after the unplanned cost increases of about Rs. 1,200 crores on a consolidated basis due to the West Asia war.”

“In 1Q, the volume impact on account of the fire was about 10,000 tons, with EBITDA impact of about £5 million.”

“We are preparing for the insurance recovery process to recover some of the damages due to the fire.”

“The temporary shutdown of our Direct Sheet Plant has weighed on the operational performance because the Direct Sheet Plant, or DSP as we refer to it, is about 20% of our production in Netherlands, and that has been closed since the first week of April.”

“With alternative sources and mitigation plans, we expect the impact to taper down in the coming quarters.”

“In July 2026, the European Commission reviewed the EU ETS and opted for a slower phase-out of the CO2 emission allowances.”

“We have previously said that there will be some delay in the delivery of the new high voltage connection by National Grid, and we are continuing to work very closely with them and the other authorities to mitigate the delay.”

“The plant is expected to start for an extended four-week trial early next week after the completion of the remediation process in close coordination with the regulators.”

“Hence, you saw the deliveries were about 5.17 million tons in India in 1Q.”

“In Netherlands, the liquid steel production was 1.55 million tons, while deliveries were 1.4 million tons.”

“Consolidated revenues for the quarter stood at about Rs. 60,794 crores and EBITDA was Rs. 9,370 crores.”

“In 1QFY27, India EBITDA was higher by 32% YoY to about Rs. 9,900 crores.”

“Tata Steel standalone revenues for the quarter stood at Rs. 36,897 crores and EBITDA was Rs. 9,409 crores, which translates to a 26 - 27% EBITDA margin reflecting a margin improvement of about 95 basis points on QoQ basis.”