Tata Steel’s consolidated Ebitda grew 18% year-on-year (y-o-y) to ₹10,500 crore in the September quarter (Q2FY27), supported by improved realization and higher volumes in the domestic business.
Revenue from the domestic and overseas business increased 11% to ₹65,450 crore even as sales volume was flat at 7.92 million tonnes. European operations reported strong realization growth, but profit declined as lower volumes hurt operating leverage.
With this, H1FY27 revenue and Ebitda growth stand at 13% and 21%, respectively. The second half of FY27 could be better, with the management expecting volumes to pick up and prices to remain at higher levels.
Domestic realizations in Q3 are expected to be about ₹3,500 per tonne higher than ₹70,400 reported in Q2, which was flattish sequentially, but up 14% y-o-y. This would be partly offset by an about $15 per tonne sequential rise in the cost of coking coal. Ongoing annual contract negotiations in Europe, amid the firm pricing environment, should reflect from Q4 or Q1FY28.
Tata Steel’s standalone Ebitda, which includes its domestic operations, grew 23% y-o-y to ₹10,315 crore. The overseas businesses were subdued as lower sales volumes offset the benefit of 33% and 16% y-o-y growth in realizations in the UK and the Netherlands, respectively.