Tata Steel sees breakeven in UK delayed by another year

Rising costs by West Asia war may offset gains from recovering steel prices, policy support

- Dipali Banka & Abhishek Law

Tata Steel chief executive T.V. Narendran highlighted that while Indian Steel consumption continues to grow at a robust 8-10%.

(PT)

Tata Steel expects its UK business to take another 12 months to breakeven, as rising costs driven by the West Asia war may offset gains from recovering steel prices and policy support aimed at reviving its loss-making operations in the UK, chief executive T.V. Narendran told Mint.

This is the second time India’s second-largest steelmaker revised its Ebitda (Earnings Before Interest, Taxes, Depreciation, and Amortization) breakeven guidance. It had originally targeted September 2025 and later deferred it to March 2026.

“We had previously said that if steel prices go up by about 100 pounds, it will break even... It is already up by about 100 pounds now...But costs have also gone up. So I don’t want to say the price point at which we will break even. But we will break even this fiscal year,” Narendran said on the sidelines of an All India Management Association conference in New Delhi on Thursday.

The comments underscore Tata Steel’s delicate balancing act in the UK, where it has struggled with structurally higher costs, including energy and logistics, even as market conditions begin to improve.