Tata Steel India production rises 10% in Q2 FY27

Research Analyst: UJVIN NEVATIA (PROPRIETOR: NEVAT INVESTMENTS) | SEBI Registration No.: INH100009628 Tata Steel Limited (

) reported a 10% year-on-year rise in India crude steel production to 6.21 million tonnes in Q2 FY27. India deliveries rose 8% to 5.97 million tonnes. What happened? India production increased 10% year on year, while deliveries rose 8%. Automotive and Special Products volumes grew 19% to around 1.1 million tonnes. Branded Products and Retail volumes reached around 2.2 million tonnes. Construction & Solutions volumes were around 0.6 million tonnes, with ready-to-use solutions growing 32% year on year. Engineering and Packaging volumes rose 12% quarter on quarter. The overseas business remained mixed. Netherlands production was around 1.52 million tonnes, while UK deliveries stood at 0.38 million tonnes. Why does it matter? The domestic business is showing stronger volumes across automotive, branded products and construction. Growth in value-added products is also important because volume growth alone does not necessarily improve profitability. However, weaker UK volumes highlight the challenges in Tata Steel's European operations. My view The India business remains the stronger part of the operating story. Higher production, deliveries and value-added product volumes are encouraging, but the key question is whether this can offset continued pressure in the European business. What I am watching next I would track India capacity utilisation, automotive and branded product volumes and value-added products. I would also watch European production, UK safeguard measures and Netherlands operations. No Recommendations Source: NDTV Profit Disclosure: I, my entity, associates or relatives do not have any holding, position or other material interest in Tata Steel Limited.