Tata Steel Q2 FY27 Results: Consolidated Net Profit ₹3,700 Crore on Total Income of ₹65,685 Crore
- Earnings
- Steel
Reviewed byKeshav SehgalBlacklitt Research
Tata Steel (NSE: TATASTEEL) reported consolidated total income of ₹65,684.52 crore and net profit of ₹3,699.59 crore for the quarter ended 30 Sep 2026, it said in a filing on 07 Nov 2026. Standalone total income was ₹43,103.55 crore and standalone net profit ₹5,053.64 crore for the same quarter.
Key highlights
Consolidated
Including its subsidiaries
- Total income: ₹65,684.52 crore, up 11.2% YoY and 7.6% QoQ
- Net profit: ₹3,699.59 crore, up 16.2% YoY and 55.1% QoQ; attributable to owners ₹3,666.41 crore
- EPS: ₹2.94 basic, up 18.1% YoY and 58.1% QoQ
- Auditor's review: Modified conclusion tied to Tata Steel Nederland carrying values
Standalone
The company on its own, without its subsidiaries
- Total income: ₹43,103.55 crore, up 22.1% YoY and 15.3% QoQ
- Net profit: ₹5,053.64 crore, up 24.5% YoY and 11.4% QoQ
- EPS: ₹4.05 basic, up 24.6% YoY and 11.3% QoQ
- Exceptional items: Net loss of ₹70.81 crore
Summary
| Particulars | Q2 FY27 | Q2 FY26 | YoY | Q1 FY27 | QoQ |
|---|---|---|---|---|---|
| 65,684.52 | 59,052.84 | +11.2% | 61,026.97 | +7.6% | |
| Revenue from operations | 65,436.24 | 58,689.29 | +11.5% | 60,794.29 | +7.6% |
| Other income | 248.28 | 363.55 | -31.7% | 232.68 | +6.7% |
| 3,699.59 | 3,183.09 | +16.2% | 2,385.24 | +55.1% | |
| Profit before tax | 5,455.15 | 4,222.47 | +29.2% | 3,837.53 | +42.2% |
| Finance costs | 2,005.32 | 1,774.96 | +13.0% | 1,770.51 | +13.3% |
| Depreciation | 3,781.83 | 2,893.00 | +30.7% | 3,639.65 | +3.9% |
| Tax expense | 1,755.56 | 1,039.38 | +68.9% | 1,452.29 | +20.9% |
| Net profit margin | 5.63% | 5.39% | +0.24 pp | 3.91% | +1.72 pp |
| EPS, basic (₹) | 2.94 | 2.49 | +18.1% | 1.86 | +58.1% |
Figures are in ₹ crore; YoY compares with Q2 FY26 and QoQ with Q1 FY27. Click Total income or Net profit to see the rows behind them.
Consolidated net profit grew faster than total income: profit rose 16.2% YoY against 11.2% for total income. Revenue from operations rose 11.5% to ₹65,436.24 crore, while other income fell 31.7% to ₹248.28 crore. Other income is now 0.4% of total income, so revenue from operations accounts for almost all of the year-on-year growth in income.
Depreciation rose 30.7% YoY to ₹3,781.83 crore and finance costs rose 13.0% to ₹2,005.32 crore. Finance costs equal 3.1% of total income this quarter. Tax expense rose 68.9% to ₹1,755.56 crore, which is 32.2% of profit before tax of ₹5,455.15 crore, and profit before tax rose 29.2% YoY. Consolidated profit before tax includes net exceptional items of ₹348.68 crore, of which a fair value gain of ₹454.74 crore on non-current investments is the largest part.
The six-month figures carry a larger exceptional item. The notes say the consolidated exceptional items include a gain of ₹3,457.49 crore on fair valuation of the pre-existing stake in TM International Logistics Limited, recorded in exceptional item 8(e) for the six months. The company acquired a 23% stake in that company on 20 Aug 2026 for ₹335 crore, after which it became a subsidiary holding 74%. Six-month attributable profit is ₹5,984.76 crore.
| Particulars | Q2 FY27 | Q2 FY26 | YoY | Q1 FY27 | QoQ |
|---|---|---|---|---|---|
| 43,103.55 | 35,290.03 | +22.1% | 37,387.56 | +15.3% | |
| Revenue from operations | 42,535.28 | 34,679.54 | +22.7% | 36,896.55 | +15.3% |
| Other income | 568.27 | 610.49 | -6.9% | 491.01 | +15.7% |
| 5,053.64 | 4,060.42 | +24.5% | 4,535.15 | +11.4% | |
| Profit before tax | 6,695.58 | 5,403.72 | +23.9% | 5,820.17 | +15.0% |
| Finance costs | 1,503.60 | 1,237.10 | +21.5% | 1,357.43 | +10.8% |
| Depreciation | 2,309.94 | 1,718.28 | +34.4% | 2,205.11 | +4.8% |
| Tax expense | 1,641.94 | 1,343.30 | +22.2% | 1,285.02 | +27.8% |
| Net profit margin | 11.72% | 11.51% | +0.22 pp | 12.13% | -0.41 pp |
| EPS, basic (₹) | 4.05 | 3.25 | +24.6% | 3.64 | +11.3% |
Figures are in ₹ crore; YoY compares with Q2 FY26 and QoQ with Q1 FY27. Click Total income or Net profit to see the rows behind them.
Standalone net profit rose 24.5% YoY, faster than total income at 22.1%, and profit before tax rose 23.9% to ₹6,695.58 crore. Revenue from operations rose 22.7% while other income fell 6.9% to ₹568.27 crore, which is 1.3% of total income and 8.5% of profit before tax.
Depreciation rose 34.4% YoY to ₹2,309.94 crore and finance costs rose 21.5% to ₹1,503.60 crore, or 3.5% of total income. Tax expense of ₹1,641.94 crore is 24.5% of profit before tax. Standalone exceptional items are a net loss of ₹70.81 crore, including a provision for impairment of non-current assets of ₹16.11 crore.
The standalone figures for prior periods are restated. The notes say the Rujuvalika Investments Limited merger became operative on 03 Nov 2026 and was accounted for under the pooling of interests method. The notes also say the Neelachal Ispat Nigam Limited amalgamation awaits NCLT sanction.
Consolidated net profit of ₹3,699.59 crore is ₹1,354.05 crore lower than standalone net profit of ₹5,053.64 crore, while consolidated total income of ₹65,684.52 crore is ₹22,580.97 crore higher than standalone total income. Consolidated net profit grew more slowly than standalone net profit on a YoY basis, at 16.2% against 24.5%.
The auditor's review of the consolidated results is qualified. Paragraph 5 of the review report identifies impairment indicators for property, plant and equipment of ₹33,272.58 crore and goodwill of ₹5,420.01 crore at Tata Steel Nederland B.V. The auditor says probable adjustments have not been recognised by management. The notes say management does not believe recognising a material impairment on the basis of the existing model would faithfully represent the company's position.
Inference
The filing reports a dividend paid of ₹4,988.74 crore in the six months to 30 Sep 2026 on a standalone basis. The consolidated net debt equity ratio is 0.86 for the quarter and the standalone ratio is 0.55 for the six months.
The notes say the Netherlands Joint Letter of Intent was extended to 01 Mar 2027, and that the timing of the closure of Coke and Gas Plant 1 and 2 remains unclear. The filing does not say whether any impairment will be recognised, what the outcome of the NCLT sanction will be, or who will fill the Vice Chairman role after Noel Naval Tata retires on 11 Nov 2026.
Filed with BSE on . Reference: Original filing (PDF)
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