Tata Steel Q4 Profit Up 123% to Rs 13 billion Beats Estimates as Input Cost Declines

India’s second-largest steelmaker by market capitalization, reported a better-than-expected rise in its fourth-quarter profit, driven by a sharp drop in input costs despite muted revenues and operational challenges.
The company’s consolidated net profit more than doubled to ₹13.01 billion ($153 million) for the quarter ended March 31, beating analysts’ expectations of ₹10.63 billion, according to data compiled by LSEG. This marks a strong recovery compared to the same period last year, when Tata Steel took an exceptional charge of ₹6.49 billion related to the shutdown of a block in Odisha and its European operations.

Tata Steel benefited from a decline in prices of key raw materials such as coking coal and iron ore, which helped ease cost pressures. Total expenses fell 4.1% to ₹541.68 billion, with the cost of materials consumed — which accounts for over 30% of total costs — dropping by 18.5%.

However, revenue from operations slipped 4.2% year-on-year to ₹562.18 billion, missing analyst estimates of ₹567.17 billion. The drop was attributed in part to a blast furnace relining at Tata Steel’s flagship plant in Jamshedpur, which impacted production volumes during the quarter.

The earnings come just weeks after the Indian government imposed a temporary 12% safeguard duty on select steel imports. The move aims to protect domestic steelmakers from a surge in cheaper imports from China, South Korea, and Japan — a trend that had earlier forced several mills to cut output and consider job cuts.

Analysts say the safeguard duty, coupled with a marginal recovery in domestic steel prices, has helped improve realisations for Indian steelmakers, although demand remains tepid. Tata Steel’s latest results reflect the sector's ongoing efforts to navigate global headwinds while capitalising on policy support and cost optimization strategies.

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