Tata Steel Aims at Increasing Production Capacity, Reducing Emissions in FY 26

Mumbai, July 2 – Tata Steel Ltd (NSE: TATASTEEL, BSE: 500470) presented an ambitious long-term plan for FY26 at the 118th Annual General Meeting held today via web conferencing and has focus​ed on expanding capacity in India, pursuing decarbonisation in Europe and taking steps to embrace digital innovation to strengthen competitive advantages and ultimately, shareholder value.

Tata Steel Ltd closed the day, today, 2nd July, up by 3.68% at Rs 165.95.

The company, which delivered a resilient FY25, is now transitioning to a growth-driven transformation focused on improving volumes, embarking on greener steel making and continuing to maintain cost leadership across global markets.

India: Scaling Up to Tap Domestic Demand

Tata Steel is actively progressing toward its strategic milestone of achieving 40 MTPA capacity, banking on India’s rising per capita steel consumption and infrastructure tailwinds.

FY26 Operational Focus:

• Ramp-up at Tata Steel Kalinganagar (TSK) Phase 2 to rated capacity of 5 MTPA, featuring India’s largest blast furnace.
• 2.2 MTPA Cold Rolling Mill Complex at Kalinganagar to be further optimised for value-added product output.
• 0.75 MTPA Electric Arc Furnace (EAF) at Ludhiana, commissioned to advance low-emission steel production.

This expansion pipeline reinforces Tata Steel’s confidence in India’s cyclical upturn and builds optionality across multiple brownfield sites for accelerated scaling.

Europe: Transitioning to Green Steel by 2027

Tata Steel is fast-tracking the overhaul of its legacy European operations, with the UK and Netherlands businesses set to become global case studies in decarbonised manufacturing.

United Kingdom

• Both blast furnaces have been decommissioned, and planning permission has been secured for a 3 MTPA EAF.
• Site construction is scheduled to begin in July 2025, with commissioning expected by FY28.
• UK government support confirmed through a signed Grant Funding Agreement (GFA).

Netherlands

• Targeting 40% CO₂ reduction, with phased shutdown of existing furnaces.
• DRP–EAF route with hydrogen adoption and carbon capture under development.
• Focus on remaining cost-competitive within the EU while becoming “green and clean”.

Decarbonisation & Net Zero Vision

Tata Steel reaffirmed its commitment to achieving Net Zero by 2045, with FY26 positioned as a critical year for execution. The company aims to cut 50 million tons of CO₂e over the next decade, driven by:

• Carbon direct avoidance technologies
• Circular economy initiatives
• Carbon capture and utilisation pilots
• Continued collaboration with governments, including the Netherlands.

Digital & AI-Led Operational Excellence

With 550+ AI models already deployed, FY26 will see Tata Steel doubling down on:

• Predictive maintenance to reduce downtime
• Real-time process optimisation
• DigECA platform adoption for MSME steel buyers
• Integrated management systems across mining and production.

Talent & Culture Transformation for FY26 and Beyond

To support its 40 MTPA vision and transition to sustainable operations, Tata Steel is investing heavily in workforce capability:

• Post-merger talent integration
• Upskilling across digital and decarbonisation roles
• Restructuring for cost competitiveness
• Instilling a ‘One Tata Steel’ safety-driven culture.

Shareholder Value & FY26 Expectations

Tata Steel aims to maintain its legacy of shareholder returns while funding growth and sustainability initiatives. With ₹3.60 dividend maintained for FY25, the company signalled steady capital discipline ahead of its capex-heavy FY26.

Citing superior TSR performance over 5, 10, and 25 years, Tata Steel continues to outperform benchmarks like Nifty 50 and Sensex, and expects FY26 to build on this long-term trend.

Global Recognition Adds Momentum

In the run-up to FY26, Tata Steel received accolades that reflect its strategic execution:

• Sustainability Champion by World Steel (8th year)
• Golden Peacock Award for Corporate Governance
• National IP Award and Legal Team of the Year in India
• Princess Royal Award for UK training excellence

About the Company

Tata Steel Ltd, part of the Tata Group, is one of the world’s most geographically diversified steel producers. It is listed on the BSE and NSE and operates across India, the UK, the Netherlands, and Southeast Asia. With a strategic focus on green steel, digitalisation, and value-added growth, Tata Steel is poised to lead the next wave of industrial transformation in FY26.

REF: https://nsearchives.nseindia.com/corporate/SAKSHIKAPUR_02072025143204_Tata_Steel_-_Announcement.pdf

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