Synopsis:
The shares of this Tata Group company are in focus after the company announced its Q2 results, which highlighted a robust 319 per cent growth in profit, along with their acquisition of Tata BlueScope Steel Private Limited.
The shares of this company, which was Asia’s first integrated private steel company, set up in 1907, and which has a presence across the entire value chain of steel manufacturing, from mining and processing iron ore and coal to producing and distributing finished products, were in focus due to the company’s robust results and its acquisition of another steel-based company.
With the market cap of Rs 2,27,136 crore, the shares of Tata Steel Ltd jumped 3 per cent and reached a high of Rs 184.20 compared to its previous day close of Rs 178.65. The shares are trading at a PE of 30.8, whereas its median PE is at 34.2
Q2 FY26 Result highlights
The revenue from operations for the company stood at Rs 58,216.04 crore when compared to Rs 53,489.73 crore in Q2 FY25, growing by about 9 per cent YoY and increasing 10 per cent QoQ from Rs 52,744.07 crore in Q1 FY26.
The PAT grew by about 319 per cent YoY when you compare Q2 FY26 profit at Rs 3,183.09 crore with Q2 FY25 at Rs 758.84 crore, and QoQ has increased 59 per cent from Rs 2,007.36 crore in Q1 FY26.
Tata Steel has decided to fully bring Tata BlueScope Steel Private Limited under its wing. The company has decided to buy the remaining 50 per cent stake from its joint venture partner, BlueScope Steel Asia Holdings, for up to Rs 1,100 crore.
This move will turn TBSPL’s earlier 50:50 partnership into a business completely owned by Tata Steel. By doing so, Tata Steel aims to simplify its structure, strengthen its downstream steel operations, and create a more integrated and efficient business going forward.
Business Highlights
Stronger activity in all of its major markets contributed to the company’s robust growth this quarter. Despite a decline in realisations, revenue increased by 10 percent as deliveries improved in the Netherlands and India.
Higher purchases did result in a 7 per cent increase in raw material costs, although the impact was somewhat mitigated by a decline in coking coal prices. Reducing inventory levels also helped the company by facilitating more efficient operations. As the corporation continued to transfer some of its foreign debt back to India, financing costs gradually decreased.
There were a few one-time items related to employee restructuring and asset value adjustments, but these didn’t affect the underlying performance. Overall, these combined factors helped drive a noticeable improvement in quarterly growth.
Tata Steel ltd is a global steelmaker with a strong presence across India, the Netherlands, and the UK, and the company manufactures flat products like HR coils, CR coils, and galvanised steel, and long products like wire rods, rebars, ferro alloys, tubes, bearings, wires, etc. Its products are sold under diverse brands, including Tata Astrum, Tata Tiscon, Galvano, Tata Steelium, Tata Structura, Tata Agrico, Tata Wiron, Tata Pravish, etc.
Written by Leon Mendonca
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