Tata Steel Q2 Preview: Profit may jump over 250% YoY; Europe business and margin outlook in focus

Tata Steel is expected to report a strong second quarter, with profit likely to rise sharply on better operating performance and softer raw material prices.

According to estimates from Zee Business Research, the company’s consolidated revenue may touch around Rs 54,934 crore, compared with Rs 53,904.7 crore in the same quarter last year — an increase of about 1.9 per cent.

Operating performance seen improving

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EBITDA for the July–September period is projected at Rs 8,537 crore, against Rs 6,141 crore a year earlier, up roughly 39 per cent. The margin could improve to 15.5 per cent from 11.4 per cent last year, led by cost control and better product mix.

Profit may surge over two-fold YoY

Net profit is estimated at Rs 3,059 crore, a jump of more than 260 per cent from Rs 833 crore in the previous year’s quarter. The improvement is attributed to higher domestic volumes and improved efficiency, even as weaker realisations trimmed some gains.

Key factors at play

A decline in coking coal prices is expected to ease input cost pressure, while support from the European business could partly offset weakness in the UK operations. Analysts, however, remain watchful of commentary around average selling prices (ASPs) and capital expenditure (capex) plans for the second half of FY26.

Despite softer pricing trends, analysts expect Tata Steel to post a steady performance, reflecting cost discipline and stable demand momentum in the domestic market.