Tata Steel Limited Earnings Summary — Q4 FY2026
Tata Steel Achieves Significant Bottom-Line Recovery in Q4 as Operating Margins Expand to 16%
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 3.9% sequentially in Q1 FY2027.
- Revenue of ₹60,794 Cr is 14.3% higher year-on-year.
- Revenue has compounded at 1.6% annualised over the last 10 quarters.
- Net profit of ₹2,318 Cr is 11.6% above the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at 80.8% annualised across the period.
- Operating margin stands at 15.2% in Q1 FY2027.
- Operating margin expanded by 127 bps year-on-year.
- Over the last two years operating margin has expanded by 302 bps.
- PBT margin is 6.3%.
- Expense growth of 12.6% remained below revenue growth of 14.3%.
- Operating profit of ₹9,264 Cr is 24.7% higher year-on-year.
- Operating leverage continues to improve.
- 4 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 62/100 (Healthy) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 60,794 | 63,270 | 57,002 | 58,689 | 53,178 | 56,218 | 53,648 | 53,905 | 54,771 | 58,687 |
| Expenses | Stable | 51,530 | 53,441 | 48,803 | 49,793 | 45,751 | 49,659 | 47,745 | 47,789 | 48,077 | 52,087 |
| Operating Profit | Improving | 9,264 | 9,829 | 8,200 | 8,897 | 7,428 | 6,559 | 5,903 | 6,116 | 6,694 | 6,601 |
| Operating Margin | Improving | 15.2% | 15.5% | 14.4% | 15.2% | 14.0% | 11.7% | 11.0% | 11.3% | 12.2% | 11.3% |
| Other Income | Accelerating | -17 | 42 | 465 | -6 | 236 | 149 | 142 | 617 | -6 | -382 |
| Interest | Stable | 1,771 | 1,792 | 1,747 | 1,775 | 1,852 | 1,789 | 1,804 | 1,971 | 1,777 | 1,842 |
| Depreciation | Improving | 3,640 | 3,268 | 3,049 | 2,893 | 2,744 | 2,720 | 2,569 | 2,597 | 2,535 | 2,568 |
| Profit Before Tax | Improving | 3,838 | 4,810 | 3,869 | 4,222 | 3,067 | 2,200 | 1,672 | 2,164 | 2,377 | 1,809 |
| Tax | Accelerating | 1,452 | 1,845 | 1,138 | 1,039 | 1,060 | 999 | 1,377 | 1,405 | 1,458 | 1,254 |
| Net Profit | Volatile | 2,318 | 2,926 | 2,689 | 3,102 | 2,078 | 1,301 | 327 | 833 | 960 | 611 |
| Net Margin | Volatile | 3.8% | 4.6% | 4.7% | 5.3% | 3.9% | 2.3% | 0.6% | 1.6% | 1.8% | 1.0% |
Key Takeaways
- Net Profit surged nearly 147% year-over-year to 2,965 Cr, driven by strong domestic demand and operational efficiencies.
- Operating Profit Margin (OPM) reached a multi-quarter high of 16% in Q4 FY2026.
- Quarterly revenue grew to 63,270 Cr, marking the strongest top-line performance in the last three fiscal years.
- Depreciation costs have risen steadily to 3,268 Cr, reflecting the company's continuous capital expenditure in Indian capacity.
- Tax expenses remained high at 38% for the quarter, impacting the final bottom-line conversion.
- Standalone India business continues to be the primary engine of profitability while European restructuring progresses.
Management Guidance
Management remains committed to achieving 30 MnTPA domestic capacity by 2025 and transitioning toward higher-margin branded products.
Sentiment Shift
Improving
The consistent quarterly improvement in OPM from 11% to 16% over the year signals a recovery from legacy operational hurdles.
Outlook
The outlook is positive for the domestic India business with aggressive capacity targets, though global volatility and European restructuring remains a monitorable.
From the Annual Report (Key Quotes)
“The core narrative is the structural shift in earnings power as high-margin Indian capacity replaces lower-margin units.”
“Institutional trust remains high, reflected in stable promoter holdings and significant DII interest.”
“Recent quarterly trends suggest the worst of the cost pressures and European restructuring may be behind the firm.”
Official Quarterly Documents
This summary is AI-generated from Tata Steel Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.