Tata Steel reported a consolidated EBITDA of Rs 258.02 billion for FY2025, reflecting a 10 per cent year-on-year growth despite a challenging operating environment. The company’s consolidated annual revenues stood at Rs 2.18 trillion, with an EBITDA margin of approximately 12 per cent. In India, Tata Steel achieved its highest-ever crude steel production of around 21.7 million tons and record deliveries of about 20.9 million tons, aided by the 5 MTPA expansion at Kalinganagar and full-capacity operations at Neelachal Ispat Nigam. Indian operations contributed Rs 1.33 trillion in revenue and Rs 292.85 billion in EBITDA, with a strong EBITDA margin of 22 per cent. In the UK, revenues stood at £2,321 million, but the company faced an EBITDA loss of £385 million. However, a shift to a purchased substrate-based downstream model helped reduce fixed costs by 23 per cent (£230 million). In the Netherlands, revenues reached €6,273 million with an EBITDA of €90 million, driven by operational stabilisation and a 17 per cent increase in deliveries to 6.25 million tons.

T V Narendran, Chief Executive Officer & Managing Director, said, “FY2025 has been an important transition year for Tata Steel with significant developments across operating geographies. We commissioned India’s largest blast furnace at Kalinganagar, safely decommissioned two blast furnaces in UK and achieved production levels near rated capacity in Netherlands. India deliveries were best ever at around 21 million tons and were up 5 per cent YoY aided by a smooth ramp up of the new blast furnace at Kalinganagar and capacity utilisation close to 100 per cent at the remaining operations. At the segment level, Tata Steel continues to be the preferred supplier for automotive steel, with high share of business in new model launches. Tata Tiscon achieved ‘best ever’ volumes and grew by 19 per cent YoY to around 2.4 million tons. We have invested more than Rs 16 billion on R&D in the last 5 years, enabling us to become the first Indian steel supplier to have end-to-end capabilities in hydrogen transportation and to localise CP780 automotive grade demonstrating our customer centricity. In yet another step towards growing in chosen segments in India, we have begun catering to commercial shipbuilding. Deliveries in the UK were ~2.5 million tons as we smoothly transitioned to supplying our customers on the basis of imported substrate processed at our downstream mills while fixed costs have reduced by around £230 million, the benefit was not visible due to surging imports. In Netherlands, our deliveries were ~6.25 million tons and for the quarter were 1.75 million tons, highest in the last six years. The QoQ improvement in profitability at Netherlands includes efforts to reduce controllable costs while a transformation program to restore long term competitiveness has been launched in April 2025. This year also marked landmark achievement in the form of a century of mining at Noamundi and in FY2025, we mined around 40 million tons of iron ore across our mines in India. I am also happy to share that we have been recognised by worldsteel as Sustainability champion for the eighth time in a row.”

Koushik Chatterjee, Executive Director and Chief Financial Officer, added, “Tata Steel Consolidated revenues for FY2025 were around $26 billion and EBITDA was $3.1 billion. Consolidated EBITDA improved by 10 per cent YoY aided by higher volumes and reduction in controllable costs despite the drop in realisations. Neelachal Ispat Nigam achieved annual EBITDA of around Rs 10 billion with a margin of 19 per cent and free cash flow in excess of Rs 10 billion. This demonstrates the turnaround of the company which was closed at the time of acquisition almost three years ago. Operating cash flows after interest and adjustments improved by 37 per cent or ~Rs 48 billion YoY to Rs 177 billion aided by working capital release of ~Rs 36 billion. We spent Rs 156.71 billion on capital expenditure during the year. For the quarter, Consolidated revenues stood at Rs 562.18 billion and EBITDA was Rs 67.62 billion, which translates to a margin of around 12 per cent, with India EBITDA margin being higher at 21 per cent. Consolidated EBITDA margin was 100 bps higher on QoQ basis. We are focused on cost takeouts to enhance competitiveness and have already achieved ~Rs 66 billion during the year vs. FY2024 levels, of which £230 million or Rs 26 billion was in UK, Rs 28 billion was in India and Rs 11.50 billion was in Netherlands and the cost transformation program will continue in the future. Our Electric Arc Furnace project in UK is also progressing as per plan with award of key OEM contracts, receipt of planning permissions with construction likely to begin by July 2025. Tata Steel Netherlands annual EBITDA has improved to €90 million as production returned to near rated capacity and operating cash flows after interest were around €450 million through significant cash and cost focused actions. The discussion with the Government of Netherlands on the integrated decarbonisation and environmental measures project continues to be intense and we are also engaged with the provincial and environmental authorities on the above.”