Tata Steel Targets Capacity Expansion in India Amidst Global Cost Optimization and Demand Growth
Tata Steel is poised for growth, capitalizing on India's projected 8-10% steel demand increase (FY26-30) and expanding its capacity from 26.5 MTPA to 40 MTPA by FY31. The company's cost transformation program has achieved Rs 8,600 crore in savings, with a target of Rs 11,500 crore for FY26. Favorable global trade policies are also aiding its European operations. The consolidated net debt decreased to Rs 81,834 crore, with a net debt-to-operating-profit ratio of 2.59 times. The company is transitioning its UK operations to electric arc furnaces to enhance competitiveness.
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Tata Steel aims to expand its India capacity from 26.5 MTPA to 40 MTPA by FY31, supported by projected steel demand growth of 8-10% from FY26-30. The firm reported consolidated revenue of Rs 57,002 crore in Q3FY26, with a net profit of Rs 2,730 crore.
The cost transformation initiative yielded Rs 8,600 crore in savings, nearing its FY26 goal of Rs 11,500 crore. The consolidated net debt was reduced to Rs 81,834 crore, maintaining a favorable net debt-to-operating-profit ratio of 2.59. The company is also converting its UK Port Talbot plant to an electric arc furnace to eliminate long-term cost disadvantages.
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