Tata Steel Shares In Focus After Steelmaker Reports 116% YoY Jump in Q1 Profit

Tata Steel shares will remain in focus on Thursday's trading session after the Indian steelmaker reported a 116% annual jump in its net profit in the quarter ended in June. Despite increased consolidated profit, the Tata Group subsidiary reported a decline in its net revenue to Rs 53,178.12 crore.

Tata Steel shares closed 0.61% lower at Rs 161.35 per share on BSE on Wednesday with a market capitalisation of Rs 2,01,420.35 crore. The stock had touched an intraday high mark of Rs 170.20 and an intraday low mark of Rs 122.60.

The stock is likely to react after the announcement of Q1 results on Wednesday.

Tata Steel Q1 Result

The company had reported a net revenue of Rs 31,137 crore for the June quarter with an EBITDA of Rs 7,486 crores. The company's India EBITDA per ton improved by Rs 2,510 per ton on a sequential basis. Its crude steel production was around 5.24 million tons, and deliveries stood at 4.75 million tons.

Tata Steel, in its press release, notified that its operations were affected by maintenance shutdowns in Jamshedpur and Neelachal Ispat Nigam Limited. Production and deliveries are expected to normalise in the coming quarters.

Tata Steel UK Revenue

The company's UK revenues stood at £536 million for the June quarter, and EBITDA loss stood at £41 million vs. loss of £80 million in 4QFY25. The company's deliveries stood at 0.60 million tons and were marginally lower due to subdued demand.

Netherlands revenue for the June quarter stood at €1,519 million, and EBITDA stood at €64 million against €14 million reported in the June quarter of financial year 2024-25. The liquid steel production in the plant was 1.7 million tons, and deliveries were 1.5 million tons.

The impressive growth in profitability comes despite a decline in overall revenue, supported by the central government's safeguard duty on certain grades of imported steel. The favourable domestic price realisations, due to safeguard duty helped Tata Steel in boosting its profitability for the quarter.

A key factor contributing to the profit spike was the Indian government's recent safeguard duty imposed on certain steel imports. The move, aimed at protecting domestic steel manufacturers from unfairly priced foreign steel, particularly from countries like China and Vietnam, allowed Tata Steel to maintain pricing power in the domestic market, despite muted global demand. This regulatory support helped cushion margins and offset the decline in both volumes and revenue.