Tata Steel reported robust operational performance in Q2 FY27 with India crude steel production rising 10% year-on-year to 6.21 million tons, while deliveries increased 7.6% YoY to 5.97 million tons. Production was also up 8% quarter-on-quarter, driven by higher output at Jamshedpur and Kalinganagar facilities. On a half-year basis, production rose 10% YoY to 11.97 million tons with deliveries increasing 8% to 11.14 million tons. However, shares ended at ₹171.5, down 2.3% on Thursday following broader selling pressure on Dalal Street, compared to ₹178.69 at the previous close. The company filed its Q2 business update after market operating hours on October 7, 2026.
The Automotive & Special Products vertical achieved its best-ever second-quarter volumes of around 1.1 million tons, up 19% YoY and 9% QoQ, driven by the ramp-up of Continuous Annealing and Galvanising lines at Kalinganagar and Combi mill at Jamshedpur. Branded Products & Retail posted best-ever quarterly volumes of around 2.2 million tons, with Tata Tiscon volumes growing 7% QoQ while Tata Kosh climbed 25% QoQ. The Construction & Solutions vertical recorded volumes of around 0.6 million tons, with ready-to-use solutions growing 32% YoY. Engineering and Packaging vertical achieved volumes of 0.4 million tons, up 12% QoQ driven by higher sales to Oil & Gas. Colors segment posted best-ever quarterly volumes, rising 34% QoQ, while gross merchandise value from Tata Steel Aashiyana and DigECA increased 30% QoQ to ₹2,860 crore.
While India volumes recorded strong growth, global production and delivery volumes maintained muted performance in Q2 FY27. Tata Steel Netherlands reported deliveries of 1.3 million tonnes, down 15.6% YoY from 1.54 million tonnes a year earlier, with the Direct Sheet Plant restarting in August 2026 after environmental authority permission following a temporary shutdown due to chromium-6 emission concerns. Tata Steel UK delivered 0.38 million tons during the quarter, down 33.3% YoY from 0.57 million tonnes, with volumes impacted by inventory buildup ahead of new safeguard measures implementation on July 1, 2026. The company is working on a £1.25 billion (₹16,000 crore) electric arc furnace at Port Talbot with 3 million tonnes capacity, expected to be commissioned in end 2027 and cut emissions by nearly 90%. Tata Steel Thailand achieved saleable steel production of 0.32 million tons and deliveries of 0.31 million tons, with deliveries marginally lower QoQ due to heavy rains in September 2026.
According to Nuvama Institutional Equities' Q2 FY27 preview, steel companies are expected to report 10-13% sequential EBITDA growth supported by volume recovery after Q1 maintenance shutdowns. However, EBITDA per tonne is projected to decline by ₹600-2,200 per tonne across steel companies due to higher costs and lower realizations. Steel volumes are anticipated to recover by 6-25% quarter-on-quarter, with average flat steel prices remaining firm while long steel prices declined by around ₹3,500 per tonne sequentially. The strong performance of Tata Steel's local operations helped the company's total delivery volumes reach nearly 8 million tonnes in Q2 FY27, broadly flat on a year-on-year basis.
On a longer-term basis, Tata Steel shares have delivered nearly 35% returns to investors in the last five years and more than 39% gains in the last three years. The stock trades at a consolidated P/E of 18.1 times, with the stock having traded at a P/E between 2.6 times and 183.2 times over the past 5 years. Tata Steel has a Return on Equity (RoE) of 11.7%, outpacing JSW Steel's 10.2% and SAIL's 6.6%. The company's market capitalisation stood at more than ₹2.19 lakh crore as of the stock market close on Wednesday, October 7, 2026. NSE data showed that Tata Steel shares surged to hit their 52-week high of ₹224.40 apiece on May 15, 2026, while the 52-week low was at ₹160.06 apiece on December 9, 2025.
