Q2 2026 Tata Steel Ltd Earnings Call Transcript
Key Points
- Tata Steel Ltd (STU:HWHG) reported an 8% increase in crude steel production in India quarter-on-quarter, driven by the ramp-up in Kalinganagar and completion of the G Blast Furnace relining.
- Domestic deliveries in India increased by 20% quarter-on-quarter, showcasing strong customer relationships and an effective sales network.
- The company achieved an improvement in EBITDA margin by 80 basis points to 25%, despite a drop in hot-rolled coil spot prices.
- Tata Tiscon volumes grew by 27% quarter-on-quarter, leveraging an expanding channel network and digital platforms.
- The cost transformation program delivered tangible results, achieving around INR5,450 crore in savings in the first half of the financial year, with a compliance rate of 94% to the H1 plan.
- Tata Steel Ltd (STU:HWHG) faced challenges in the UK market, with EBITDA losses widening from GBP41 million in the first quarter to GBP66 million in the second quarter due to severe market pressure and increased imports.
- The UK market remains vulnerable due to high import quotas, which exceed the country's total consumption, leading to price declines.
- In the Netherlands, material costs increased by about EUR75 million quarter-on-quarter, partly offsetting improved volumes.
- The company is delayed on the people restructuring timeline in the Netherlands, affecting the expected benefits for the year.
- The net debt increased to INR87,040 crore, with a net debt to EBITDA ratio of about 3x, partly due to cash utilized for dividend payments.
Ladies and gentlemen, good day, and welcome to the Tata Steel analyst call. Please note that this meeting is being recorded. (Operator Instructions) I would now like to hand the conference over to Ms. Samita Shah. Thank you, and over to you, ma'am.
Thank you, Kingshuk. Good afternoon, everyone, joining us in India and from the Far East, and good morning to all of you who are joining us from the West. On behalf of Tata Steel, welcome to this call to discuss our results for the second quarter of FY26. We published our results yesterday, and there is also a detailed presentation on our website, which you can refer to if you haven't done already. As always, we will be guided -- this entire call will be governed by the disclosure clause on Page 2 of the presentation.
To help you understand the results better, we have with us Mr. TV Narendran, CEO and Managing Director, Tata Steel; and Mr. Koushik Chatterjee, Executive Director and CFO, Tata Steel. They will make
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