Tata Steel Q2 profit rises 18% as India leads

Tata Steel Limited (NSE: TATASTEEL) reported a resilient Q2 FY27 performance, with consolidated revenue increasing 11.5% YoY to ₹65,436 crore. Net profit attributable to owners rose 18.2% to ₹3,666 crore, compared with ₹3,102 crore in the corresponding quarter last year. Key Highlights • Consolidated revenue increased 11.5% to ₹65,436 crore. • EBITDA grew 17% YoY to ₹10,665 crore. • Consolidated EBITDA margin stood at approximately 16%. • India business revenue reached ₹42,653 crore, up 22.6%. • India EBITDA stood at ₹10,634 crore, with a margin of 25%. • India deliveries increased 16% QoQ to 5.98 million tonnes. • Netherlands operations returned to stronger profitability, with EBITDA rising to €72 million from €4 million in Q1. • UK operations continued to report losses, with EBITDA loss at £56 million. • Net debt stood at ₹91,423 crore, with net debt-to-EBITDA at 2.4x. My View Tata Steel delivered a strong performance, largely driven by its Indian operations. The 25% EBITDA margin in India highlights the strength of its domestic business, supported by higher deliveries and improved operational efficiency. The Netherlands business also showed sequential improvement following the restart of its Direct Sheet Plant. However, the UK business remains a concern, while consolidated net debt of over ₹91,000 crore requires continued monitoring. The company's ₹7,140 crore full-year cost-saving target is another important factor to watch. What I'm Watching Next I will monitor domestic steel demand, realisations, raw material costs, UK operations and debt reduction. The key question is whether strong Indian profitability can continue to offset weakness in overseas operations. Stance: Moderately positive. Strong Indian operations and improving EBITDA are encouraging, but overseas losses and elevated debt remain key risks. Disclosure: I do not have any holding or position in the stock mentioned above. TATASTEEL