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Tata Steel Posts Q1 FY27 Results: Net Profit Reaches ₹2,385 Crore as Consolidated Revenue Hits ₹60,794 Crore

Posted On : 2026-07-31 16:02:30( TIMEZONE : IST )

Global steelmaker Tata Steel Limited announced its unaudited consolidated financial results for the first quarter ended June 30, 2026 (Q1 FY27). The company reported a steady financial performance, driven by strong domestic operations in India, expanding its consolidated revenue past the ₹60,000 crore mark for the quarter.

Consolidated Revenue and Profitability

Tata Steel's total revenue from operations for Q1 FY27 reached ₹60,794.29 crore, registering a robust 14.32% year-on-year growth compared to ₹53,178.12 crore recorded in Q1 FY26. Sequentially, total operational revenue adjusted slightly by 3.91% from ₹63,270.13 crore in Q4 FY26. Total income for the quarter came in at ₹61,026.97 crore, supported by ₹232.68 crore in other income.

The company achieved a Consolidated Net Profit of ₹2,385.24 crore for Q1 FY27, representing a 18.82% surge year-on-year over ₹2,007.36 crore reported in the corresponding quarter of the previous fiscal. Net profit attributable to the owners of the company stood at ₹2,318.35 crore, up from ₹2,077.68 crore in Q1 FY26.

Net profit margin for the quarter was recorded at 3.92%, expanding from 3.77% in Q1 FY26, while the Operating EBITDA margin improved to 15.41% compared to 14.07% in the same period last year.

Operational Expenditure Highlights

Total expenses for the quarter stood at ₹56,940.11 crore, compared to ₹50,347.31 crore in Q1 FY26 and ₹58,502.25 crore in Q4 FY26. Major expense components included:

Cost of Materials Consumed: ₹20,185.68 crore (vs ₹18,028.08 crore in Q1 FY26).

Employee Benefits Expense: ₹7,225.80 crore (vs ₹6,598.57 crore in Q1 FY26).

Other Expenses: ₹21,349.68 crore (vs ₹18,573.35 crore in Q1 FY26).

Finance Costs: Reduced to ₹1,770.51 crore (vs ₹1,852.43 crore in Q1 FY26).

Depreciation and Amortisation Expense: ₹3,639.65 crore (vs ₹2,744.30 crore in Q1 FY26).

Total tax expense for Q1 FY27 stood at ₹1,452.29 crore, comprising current tax of ₹1,504.78 crore, tax adjustments for earlier years of ₹(505.05) crore, and deferred tax of ₹452.56 crore.

Exceptional Items Breakdown

Tata Steel recorded a net exceptional loss of ₹345.48 crore during the quarter. Key exceptional adjustments included:

Profit on sale of non-current investments, business undertakings, and non-current assets of ₹322.08 crore.

Provision for impairment of non-current assets of ₹(37.25) crore.

Statutory impact of new labor codes of ₹(3.58) crore.

Restructuring, redundancy, and other net provisions of ₹(317.86) crore.

Fair value gain on non-current investments (net) of ₹9.63 crore.

After accounting for exceptional items and joint venture/associate profits of ₹96.15 crore, Profit Before Tax (PBT) came in at ₹3,837.53 crore, up 25.12% YoY from ₹3,067.08 crore in Q1 FY26.

Segment-Wise Performance Summary

Indian Operations Lead Top-Line and Earnings

Tata Steel India: Generated segment revenue of ₹36,896.55 crore in Q1 FY27, up 18.97% YoY from ₹31,014.36 crore. Segment result before exceptional items, interest, tax, and depreciation (EBITDA) reached ₹9,409.17 crore, compared to ₹7,262.68 crore in Q1 FY26.

Neelachal Ispat Nigam Limited (NINL): Revenue rose significantly by 84.75% YoY to ₹1,712.24 crore, with segment EBITDA jumping to ₹498.48 crore (vs ₹223.55 crore in Q1 FY26).

Other Indian Operations: Produced segment revenue of ₹4,395.03 crore and segment EBITDA of ₹438.55 crore.

European & Overseas Operations

Tata Steel Netherlands Operations: Posted revenue of ₹15,802.71 crore (vs ₹14,618.69 crore in Q1 FY26), delivering a segment EBITDA of ₹39.12 crore.

Tata Steel UK Operations: Reported revenue of ₹6,115.30 crore (vs ₹6,095.61 crore in Q1 FY26). The unit recorded a segment loss before interest, tax, and depreciation of ₹(340.72) crore, narrowing from a loss of ₹(471.22) crore in Q1 FY26.

South East Asian Operations: Recorded revenue of ₹2,346.41 crore and segment EBITDA of ₹193.89 crore (vs ₹155.93 crore in Q1 FY26).

Other Trade Related Operations: Delivered revenue of ₹12,688.61 crore with a segment loss of ₹(126.63) crore.

Financial Position and Key Ratios

Net Worth: Consolidated net worth rose to ₹1,01,054.51 crore as of June 30, 2026, crossing the ₹1 lakh crore landmark (up from ₹98,768.46 crore as of March 31, 2026).

Total Assets & Liabilities: Total consolidated assets expanded to ₹3,08,662.33 crore, while total segment liabilities stood at ₹2,02,546.77 crore.

Debt to Equity Ratio: Net debt to equity ratio improved to 0.80x as of June 30, 2026, compared to 0.91x in Q1 FY26.

Interest Service Coverage Ratio (ISCR): Stood strong at 4.53x for the quarter.

Debt Service Coverage Ratio (DSCR): Stood at 1.03x.

Current Ratio: Measured at 0.88x, up from 0.80x at FY26 end.

Earnings Per Share (EPS): Basic and Diluted EPS for the quarter (not annualised, face value ₹1 per share) stood at ₹1.86, compared to ₹1.67 in Q1 FY26 and ₹2.34 in Q4 FY26.