Tata Steel beats Q2 profit estimates on strong demand and cost savings

what happened

Tata Steel Ltd's net profit for the July-September quarter (Q2FY27) rose 18% year on year to Rs 3,666.41 crore, Moody's reported, citing an exchange filing. That was above the Rs 3,253.7 crore Bloomberg consensus, based on a poll of 12 analysts. Consolidated revenue climbed 12% to Rs 65,436.24 crore, and Ebitda rose 17% to Rs 10,665 crore.

Cost savings in the first half of FY27 reached only Rs 1,800 crore against a full-year target of Rs 7,000 crore. CFO Koushik Chatterjee blamed the West Asia crisis, a planned shutdown in India, a sheet mill outage in the Netherlands and a fire at Tata Steel UK. Management kept its guidance and expects most of the benefit in the second half.

European operations remain uneven. In the Netherlands, the restart of the Direct Sheet Plant helped revenue, while in the UK weak demand and high imports left steel inventories near 865,000 tonnes. For the December quarter, the company expects Indian realisations to rise by Rs 3,500-3,600 per tonne.

why it matters

Two points matter for the market: a strong quarter despite cost-cutting setbacks, and continued risk in Europe. The company expects coking coal costs to rise by about $15 per tonne in India and the Netherlands in the December quarter, which will weigh on margins, so steel prices remain the key variable.

market impact

Tata Steel shares: profit above estimates supports the stock, while cost savings lag target

• ▲Tata Steel shares pressure up — profit beat analyst expectations and revenue grew

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