Chandrasekaran charts Tata Steel’s road to 40 MTPA

Chairman highlights strong results, expansion at 119^th AGM

Mumbai/Jamshedpur, July 3: Tata Steel Chairman Natarajan Chandrasekaran said the company is moving through a major transformation and is becoming a larger, greener, smarter and more resilient steel producer, while addressing shareholders at the company’s 119th Annual General Meeting.

Speaking at the AGM held on Thursday, Chandrasekaran highlighted the company’s strong financial performance for the financial year 2025-26 and outlined its expansion plans in India and Europe.

“Tata Steel is in a transformative phase towards being a larger, greener, smarter and resilient company,” Chandrasekaran said, adding that the management remains focused on technology, digital transformation and sustainable growth.

Global challenges, India remains resilient

The Chairman said the year began with optimism in global markets due to expectations of steady economic growth and easing inflation. However, the situation changed after the West Asia crisis intensified in March, resulting in stagflation, lower output and rising inflation across several regions.

Despite global uncertainty, India’s economy remained resilient and recorded 7.6% growth in fiscal 2026, driven mainly by domestic demand and manufacturing activity.

Chandrasekaran noted that global steel production declined by about 2% to 1.85 billion tonnes in calendar year 2025 because of China’s slowdown, weak demand in Western markets, cost volatility and regulatory pressures.

In contrast, the Indian steel industry performed strongly, with production rising 10.7% to 168.4 million tonnes and demand increasing 7.6% to 163.7 million tonnes, supported by infrastructure, construction, automotive and industrial sectors.

The company achieved record annual crude steel production of around 23.4 million tonnes and deliveries of about 22.5 million tonnes in India.

“The consolidated EBITDA rose 35% to ₹34,848 crore and Profit After Tax rose 243% to ₹10,886 crore, reflecting improved operational performance,” Chandrasekaran said.

In India, Tata Steel reported revenue of ₹1,40,302 crore and EBITDA of ₹34,272 crore, with EBITDA margins improving to 24% due to cost efficiencies, better product mix and higher volumes.

The Board has recommended a dividend of ₹4 per equity share for fiscal 2026.

Kalinganagar expansion completed

One of the major achievements during the year was the commissioning of Phase II expansion at Kalinganagar.

The expansion increased Tata Steel’s total capacity to 26.1 million tonnes per annum and expanded the Kalinganagar site capacity from 3 MTPA to 8 MTPA.

“With India’s largest blast furnace and a state-of-the-art Cold Rolling Mill, we have strategically enhanced our flat products portfolio and strengthened our presence in high-value, technology-intensive segments such as automotive and defence,” Chandrasekaran said.

He described the project as a decisive step toward the company’s long-term target of achieving 40 MTPA capacity.

Focus on value-added products

The Chairman said Tata Steel continued to strengthen its position in value-added products and downstream businesses, including tubes, tinplate and wires.

During the year, the company consolidated its ownership in Tata Steel Colors and acquired a majority stake in Thriveni Pellets, which he described as important for long-term competitiveness.

Tata Steel also plans to expand NINL and recently inaugurated a 0.75 MTPA Electric Arc Furnace in Ludhiana to strengthen its long products portfolio. The Board has approved the amalgamation of NINL into Tata Steel to improve synergies and simplify the corporate structure.

European transformation

In the United Kingdom, Tata Steel has started work on the GBP 1.25 billion Electric Arc Furnace project at Port Talbot, which Chandrasekaran described as the UK’s largest low-carbon steelmaking transition.

The project is being developed in partnership with the UK Government and is progressing through engineering and construction phases.

In the Netherlands, however, the company is facing a challenging regulatory environment.

“The operating environment has become challenging with certain environmental regulations now exceeding European Union standards, and we are actively engaging with the Dutch Government and other stakeholders to develop a viable long-term pathway,” he said.

During the year, Tata Steel Netherlands acquired Vattenfall’s co-generation power plants to strengthen energy security and support its transition plans.

Technology and digital push

Chandrasekaran said Tata Steel has deployed more than 860 AI models across its value chain to improve yield, safety and energy efficiency.

The company’s digital platforms, Aashiyana and DigECA, achieved a combined gross merchandise value of ₹9,360 crore, representing 161% growth over the previous year.

“We aim to leverage technology and advancements in manufacturing to enhance the company’s competitive position and maintain market leadership,” he said.

Safety and CSR remain priorities

The Chairman reiterated that safety remains the company’s top priority, with Tata Steel continuing to strengthen processes, deploy technology and build awareness to achieve a zero-harm workplace.

He also highlighted the company’s social initiatives, stating that Tata Steel spent ₹473 crore on CSR programmes during the year, impacting more than 6.9 million lives across India.

Looking ahead

Concluding his address, Chandrasekaran thanked shareholders for their continued trust and support.

“Tata Steel is in a transformative phase towards being a larger, greener, smarter and resilient company. I thank all of you for your continued trust in the Board and the Management and look forward to your support for the coming years,” he said.