Tata Steel hits all-time high India volumes in FY26; UK business under pressure

Tata Steel reported its highest-ever annual production and deliveries in India for FY26. The growth came on the back of capacity ramp-up and steady domestic demand. This helped offset a mixed performance in its European operations.

As per the company’s provisional update, Tata Steel India produced 23.48 million tonnes of crude steel in FY26. This marks an 8 per cent year-on-year rise. The increase was largely driven by the ramp-up at its Kalinganagar facility. However, production was partly impacted by a blast furnace relining shutdown at its Jamshedpur plant.

March quarter sees sharp growth

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For the March quarter, India production stood at 6.25 million tonnes. This is a 15 per cent increase compared to the same period last year. Deliveries also remained strong during the quarter.

For the full year, deliveries reached a record 22.53 million tonnes. In the fourth quarter alone, deliveries rose 10 per cent year-on-year. This makes it the company’s best-ever quarterly performance in terms of volumes.

Domestic deliveries crossed the 20 million tonnes mark for the first time. The company said this reflects strong demand across sectors and continued customer traction.

Broad-based demand across segments

Tata Steel saw growth across key business segments during FY26.

The automotive and special products division recorded annual volumes of about 3.4 million tonnes. Quarterly volumes were close to 1 million tonnes. This indicates steady demand from auto manufacturers.

Branded products and retail volumes stood at around 7.3 million tonnes. Growth was supported by strong performance of key brands such as Tata Tiscon and Tata Steelium. Tata Steelium registered a sharp 28 per cent year-on-year growth.

Industrial products and projects volumes came in at about 7.2 million tonnes. Demand was driven by engineering and infrastructure sectors. Segments like defence and shipbuilding also supported growth.

The company also reported double-digit growth in downstream businesses. These include tubes, tinplate and colour-coated products. Its wires segment also crossed previous highs.

Digital channels gain traction

The company’s digital push also showed strong results. Gross merchandise value from e-commerce platforms rose 161 per cent year-on-year. It reached Rs 9,360 crore in FY26. This highlights rising adoption of digital sales channels in the steel business.

Europe remains mixed; UK weak

In Europe, performance remained uneven.

Tata Steel Netherlands reported production of around 6.7 million tonnes for the year. Deliveries stood at about 6.1 million tonnes. In the fourth quarter, deliveries rose 21 per cent sequentially to 1.7 million tonnes. This shows some recovery in demand.

However, the UK business continued to remain under pressure. Annual deliveries declined to 2.2 million tonnes due to weak market conditions. The company said work is ongoing to set up a 3 million tonnes per annum electric arc furnace at Port Talbot. This is part of its transition strategy.

Tata Steel Thailand reported stable performance. Production stood at 1.33 million tonnes, while deliveries were at 1.32 million tonnes. Growth was fueled by robust domestic demand for rebar.

India drives growth in FY26

Tata Steel's Indian operations were the primary engine of expansion. The combination of strong domestic demand and capacity increases helped mitigate difficulties in international markets.

This performance underscores the resilience of India's steel demand landscape in FY26. It also emphasizes the company's growing reliance on its domestic operations to maintain stable growth.

Stock gains

Around 3 PM, Tata Steel stock was trading at Rs 197.62, up 0.78 per cent for the day.

The steel stock opened at Rs 195.60 and touched an intraday high of Rs 197.68. The day’s low stood at Rs 193.28. The company’s market capitalisation is at Rs 2.47 lakh crore. The stock remains below its 52-week high of Rs 216.45, while well above its 52-week low of Rs 125.30.