Tata Steel Q4: Profit More Than Doubles to ₹1,301 Cr; UK Losses Persist, ₹3.6/Share Dividend Announced

Tata Steel posted a consolidated net profit of ₹1,301 crore for the fourth quarter, marking a 113% year-on-year surge, even as revenues declined and international operations remained under pressure. The profit growth comes despite continued losses in its UK unit and muted steel prices in the domestic market.

Quarterly revenue fell 4% year-on-year to ₹56,218 crore, reflecting subdued pricing, particularly in India. Operating profit (EBITDA) was largely flat at ₹6,762 crore. The company has declared a dividend of ₹3.60 per share.

Standalone operations in India remained profitable, with Q4 net earnings of ₹3,141 crore, although down 19% from a year ago due to price softness. Domestic sales volumes, however, hit a record high of 21 million tonnes, up 5% year-on-year, driven by ramp-up at its newly commissioned blast furnace in Kalinganagar, Odisha.

The company termed FY25 as a year of strategic transitions, including commissioning India’s largest blast furnace, decommissioning two in the UK, and stabilising production in the Netherlands.

Global Performance Mixed

UK operations continued to weigh on consolidated earnings, reporting an EBITDA loss of ₹873 crore, widening from a ₹388 crore loss in the year-ago period. Tata Steel has begun supplying imported steel to customers in the UK to reduce costs as it transitions its Port Talbot facility. Construction on its new electric arc furnace (EAF) in the UK is expected to begin by July 2025.

In contrast, Dutch operations showed recovery, posting an EBITDA of ₹124 crore, bouncing back from a ₹296 crore loss a year earlier. Production at the Netherlands unit returned to rated capacity following maintenance disruptions in prior quarters. Engagements with the Dutch government and regulators on its decarbonisation roadmap remain ongoing.

The company also announced plans to infuse $2.5 billion (approx. ₹21,400 crore) into its Singapore-based subsidiary, T Steel Holdings, in FY26 to refinance debt and cover restructuring expenses in overseas businesses.

Market Reaction

Despite the headline profit jump, shares of Tata Steel opened at ₹152 and slipped intraday to ₹149.15, before recovering modestly to trade at ₹150.60, down 0.68% by 11:38 AM IST. The movement reflects investor caution amid international headwinds and muted guidance from European operations.

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