Tata Steel Financial Results FY2025

Steeling the Show: Tata Steel’s FY2025 Growth Amid Global Challenges

Tata Steel Delivers Resilient FY2025 with 12% EBITDA Margin

Tata Steel financial results FY2025 has announced. This year the company reported revenue of Rs 2,18,543 crore and EBITDA of Rs 25,802 crore. Its EBITDA margin was 12%. This means the company improved its operational profits by 10% despite challenging market conditions. This performance is a clear indicator of Tata Steel’s global operations where the company focused on stabilizing its operations in India, UK and Netherlands.

Regional Performance Breakdown: Country-Wise Operational Highlights

India Segment Performance

Tata Steel financial results FY2025 India segment revenue was Rs 1,33,444 crore and EBITDA was Rs 29,285 crore, which shows a strong margin of 22%. During this period, Tata Steel achieved ‘highest ever’ crude steel production and deliveries – 21.7 million tons production and 20.9 million tons deliveries. Kalinganagar expansion and Neelachal Ispat Nigam Limited working at full capacity were the major reasons for this. Tata Tiscon volumes were also best ever, with 2.4 million tons delivered, a growth of 19%.

UK Segment Performance

The UK segment faced a slightly challenging situation. Revenue stood at £2,321 million, but EBITDA loss was £385 million. Cost cutting measures were taken in UK operations, which reduced fixed costs by £230 million, but surging imports impacted profitability. Deliveries in the UK stood at 2.51 million tons. It has noticed from Tata Steel financial results FY2025 report.

Netherlands Segment Performance

After releasing Tata Steel financial results FY2025 Revenue in the Netherlands segment was €6,273 million and EBITDA reached €90 million. Production in the Netherlands reached 6.75 million tons and deliveries jumped 17%. The company focused more on cost control in the Netherlands, which improved profitability. A transformation program has also been launched from April 2025 which will focus on restoring long-term competitiveness.

Quarterly Comparison

If we compare quarterly, the company’s revenue in the January-March 2025 quarter was Rs 56,218 crore, which was 5% more than the previous quarter. The India segment reported revenue of Rs 34,661 crore and EBITDA of Rs 7,418 crore. Production declined slightly due to blast furnace relining in Jamshedpur but deliveries grew by 6% QoQ.

UK and Netherlands segments also showed slight improvement in deliveries, but UK is still in loss. Netherlands increased EBITDA to €14 million with operational improvements and deliveries stood at 1.75 million tons, the highest in last 6 years.

Capital Expenditure and Liquidity

The company spent Rs 3,220 crore on capex in the quarter and Rs 15,671 crore for the full year. Group liquidity stood at Rs 38,791 crore, including cash & cash equivalents of Rs 12,222 crore. Tata Steel has changed its accounting policy which measures equity investments at fair value. Its impact has been on exceptional items and profit after tax.

Dividend Announcement

Talking about dividend, the board has recommended a dividend of Rs 3.60 per share which is a good news for shareholders.

Management Comments

CEO’s Statement

CEO T V Narendran said that FY2025 has been a transition year for Tata Steel where record numbers were achieved in production and deliveries in India. The company maintained market leadership in the automotive steel segment and Tata Tiscon also showed 19% growth in its volumes. Apart from this, the company has also entered the commercial shipbuilding sector.

CFO’s Statement

CFO Koushik Chatterjee said that the company focused more on cost control and achieved cost savings of Rs 6,600 crore. Apart from this, Neelachal Ispat Nigam Limited generated Rs 1,000 crore EBITDA and became cash flow positive. The Netherlands segment generated €450 million cash flow and the UK segment achieved cost savings of £230 million.

Project Updates

The company also updated on its EAF (Electric Arc Furnace) projects in Ludhiana and UK. Construction in UK will start from July 2025 and commissioning work is going on in Ludhiana. Discussions are going on with the government on decarbonisation plans in Netherlands.

Sustainability and Achievements

The Company achieved the 100-year mining milestone at Noamundi mines and will mine 40 million tons of iron ore in FY2025. Tata Steel has won the Sustainability Champion award from Worldsteel for the 8th consecutive time with a strong focus on sustainability.

Conclusion

This year has been significant for Tata Steel for strategic expansion and cost control initiatives. The Company has focused on improving its global presence and profitability and plans to build this momentum in the coming times as well.