Cautiously optimistic

Domestic prices turn soft in Q2FY2026

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Aggregate net sales of 112 steel producers rose 10% to Rs 213988 crore in Q2FY 2025 as compared with Q2 FY 2025 due to stronger infrastructure and auto demand, increased exports, and higher volumes.

The operating profit margins (OPM) increased 140 basis points (bps) to 13.4%, resulting in a 23% rise in operating profit (OP) to Rs 28651 crore. Interest cost fell 3% to Rs 6310 crore, while depreciation increased 13% to Rs 9786 crore. PBT increased 44% to Rs 14246 crore. Tax expenses rose 3% to Rs 3608 crore, leading to a 66% rise in profit to Rs 10638 crore.

Tata Steel's consolidated sales increase 9% to Rs 58689.29 crore in Q2 FY 2026 over Q2 FY 2025, aided by a rise in domestic deliveries. Consolidated crude steel production increased 0.5% to 7.73 mt and deliveries rose 5.2% to 7.91 mt. The OPM improved 380 bps to 15.2%, leading to a 45% increase in OP to Rs 8896.54 crore. Profit after tax (Pat) was 272% higher at Rs 3101.75 crore. The company incurred capital expenditure of Rs 3,250 crore Q2 and Rs 7079 crore in H1 of FY 2026. The company is targeting around 40 mt capacity by 2030, supported by brownfield expansions at key sites, including Neelachal (1.1 mt to 6.2 mt), Kalinganagar (eight mt to 13 mt), and Meramandali (five mt to 6.5 mt).