Tata Steel Q1 FY26 Deliveries Drop in India Due to Planned Shutdowns; Overseas Operations Remain Stable

Mumbai, 9 July 2025: Tata Steel Ltd (NSE: TATASTEEL, BSE: 500470) reported a sequential decline in its India delivery volumes for Q1 FY26, citing scheduled maintenance shutdowns at key facilities. Despite the domestic dip, the company’s international operations, including the Netherlands, UK, and Thailand, recorded stable or marginally improved output, demonstrating resilience across its global portfolio.

Tata Steel Ltd shares opened at ₹161.95 but declined to ₹160.25 by 9:55 AM, down ₹1.72 or 1.06%, following the release of its Q1 FY26 operational update. The subdued response appears to reflect investor caution amid a 15.2% sequential fall in domestic deliveries due to scheduled maintenance shutdowns. The stock traded within a narrow range of ₹160.10 to ₹161.95 in the early hours. Despite stable overseas performance, the dip in Indian volumes may have weighed on short-term market sentiment. Market capitalisation stood at ₹2 lakh crore.

Scheduled Downtime Impacts Domestic Output; Overseas Units Show Consistency

Tata Steel’s total production in India stood at 5.26 million tonnes in Q1 FY26, slightly lower than 5.44 million tonnes in Q4 FY25. Deliveries, however, saw a notable quarter-on-quarter drop of 15.2%, largely due to planned shutdowns at the G Blast Furnace in Jamshedpur and at Neelachal Ispat Nigam Ltd (NINL).

Production and Deliveries (mn tons):

With maintenance nearing completion, NINL operations have already resumed, and the Jamshedpur reline is expected to conclude by July.

Segment-Wise India Delivery Performance Reflects Mixed Trends

Tata Steel’s Indian business segments reported varied performance, balancing volume pressure with targeted growth in value-added segments.

• Automotive & Special Products: Delivered 0.77 million tonnes, backed by 4% YoY growth in advanced grades. New ultra-high-strength steel grades received approval at the Kalinganagar plant.
• Branded Products & Retail: Posted 1.46 million tonnes in deliveries. Tata Tiscon led with 0.48 million tonnes, while Tata Astrum and Tata Steelium contributed a combined 0.81 million tonnes.
• Industrial Products & Projects: Delivered 1.6 million tonnes, supported by growth in Engineering and SmartF@B. Engineering segment posted 5% YoY growth, with strong demand from Oil & Gas and Railways. SmartF@B grew 66% YoY and launched India’s first corrosion-resistant air-cooled bars for coastal applications.
• E-Commerce Platforms: Combined GMV from Tata Steel Aashiyana and DigECA surged 39% YoY to ₹1,350 crore, reflecting growing traction in digital channels.

European and Thai Operations Maintain Momentum

Tata Steel’s overseas subsidiaries continued steady performance in Q1 FY26:

• Tata Steel Netherlands: Production and deliveries rose slightly to 1.7 million tonnes and 1.5 million tonnes, respectively.
• Tata Steel UK: Deliveries reached 0.60 million tonnes. The Electric Arc Furnace (EAF) project at Port Talbot is progressing, with construction set to begin this month.
• Tata Steel Thailand: Delivered 0.34 million tonnes, marking a modest YoY increase.

Green Steelmaking and Project Advancements Signal Long-Term Focus

Tata Steel is advancing several major sustainability and transformation initiatives:

• The Electric Arc Furnace (EAF) at Port Talbot marks a major step in the UK’s decarbonisation roadmap.
• The Jamshedpur, Kalinganagar, and Meramandali sites are now ResponsibleSteel™ certified, covering over 90% of domestic steel production.
• The company remains committed to Net Zero by 2045, with top rankings under the Dow Jones Sustainability Index (DJSI) framework.

Tata Steel Strengthens Global Leadership in Sustainable Steelmaking

With an annual crude steel capacity of 35 million tonnes and a consolidated turnover of ~$26 billion in FY25, Tata Steel continues to lead in innovation, responsible manufacturing, and global competitiveness. With operations spanning five continents and a workforce of over 78,000, the company’s strategic investments in sustainable infrastructure and digital transformation reinforce its position as one of the world’s leading steel producers. Tata Steel remains listed on NSE and BSE and is widely recognised for its environmental and governance excellence.

REF:https://nsearchives.nseindia.com/corporate/SAKSHIKAPUR_08072025172921_BSENSECombined_signed.pdf

Disclaimer:  At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations