Tata Steel Q1 Results: Net Profit Jumps 116% to Rs 2,078 Cr Despite 3% Revenue Decline; Delivery Volumes Dip

Tata Steel, one of India's leading metal producers, kicked off the financial year 2025-26 (FY26) on a strong note, posting a sharp 116% year-on-year (YoY) jump in net profit for the April-June quarter (Q1), even as overall revenues declined. The surge in profitability was largely driven by government-imposed safeguard duties on certain steel imports, which helped support domestic pricing amid muted global demand.

Tata Steel Q1 Results: Net Profit Surges 116% But Overall Revenue Falls

Tata Steel reported a sharp 116% YoY increase in consolidated net profit for the April-June quarter of FY26, with profit rising to Rs 2,078 crore, up from Rs 962 crore in the same quarter last year. The impressive growth in profitability comes despite a decline in overall revenue, thanks largely to the impact of the Union government's safeguard duty on certain grades of imported steel, which supported domestic price realisations and protected local producers from low-cost imports.

In its financial disclosures, the company noted that consolidated revenue for the quarter fell by 3% to Rs 53,178 crore, down from Rs 54,843 crore in the corresponding quarter of FY25. The decline was primarily attributed to lower steel deliveries and softer steel prices in certain markets.

Tata Steel's Indian Operations: Output Flat, Deliveries Dip

In India, Tata Steel's delivery volumes for Q1 FY26 stood at 4.75 million tonnes (MT), compared to 4.94 MT in the same period last year, and 5.60 MT in the preceding January-March quarter (Q4 FY25).

Tata Steel's production levels in India remained largely unchanged compared to the same period last year. In an official statement, the company attributed the stagnant production and lower delivery volumes to planned maintenance shutdowns at its Jamshedpur facility and the Neelachal Ispat Nigam Ltd (NINL) plant.

Tata Steel's European Operations: Mixed Performance

In Europe, Tata Steel saw mixed results. Its Netherlands operations registered a marginal increase in delivery volumes to 1.50 MT, while the UK operations continued to struggle, with volumes declining to 600,000 tonnes during the quarter. The UK business has long been under pressure due to rising energy costs, weaker demand, and legacy operational challenges.

Government Safeguard Duty Boosts Profit

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.