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Informist, Thursday, Jun. 4, 2026

 

MUMBAI/NEW DELHI – Tata Steel Ltd. will focus on downstream operations by shifting the product mix to high-margin, value-added products such as coated steel, tubes, tinplate, and wires, from commodity hot-rolled coils, the company said in its annual report for the financial year 2025-26 (Apr-Mar). The company also plans to be the supplier of choice in new client segments such as shipbuilding, data centres, and oil and gas, while aiming to maintain its hold in the segments of automotive, high-margin retail, micro, small and medium enterprises, and infrastructure or construction, according to the annual report. 

 

"Rising demand for high-strength, lightweight and specialised steels is creating opportunities for margin expansion across automotive, energy, engineering and infrastructure sectors. Tata Steel is investing in research and development, and advanced product development to strengthen its value-added steel portfolio," the annual report said. 

 

Among key targets, the company plans to expand its production capacity for tubes business to 4 million tonnes per annum from the current 1.7 million tonnes per annum. In FY26, the company added 300,000 tonnes per annum in the tubes segment, including a 100,000 tonnes per annum direct forming technology line in its Jamshedpur unit, the annual report said. 

 

The company plans to expand the wire business capacity to 1 million tonnes per annum from the existing 600,000 tonnes per annum. In FY26, the company commissioned a 42,000 tonnes per annum low relaxation and prestressed concrete line in the wires segment, as per the annual report. 

 

The company is targeting capacity expansion of tinplate phase-1 to 700,000 tonnes per annum from 400,000 tonnes per annum. For the long term, Tata Steel is planning capacity of 1 million tonnes per annum for tinplate phase 1.

 

The company also aims to scale up commodity steel production through organic expansions, and integrate the assets of recent acquisitions of Bhushan Steel Ltd., steel business of Usha Martin Ltd., and Neelachal Ispat Nigam Ltd. This will make the company cross the 40 million tonnes per annum capacity threshold, the annual report said. Neelachal Ispat Nigam supports long product manufacturing, with ongoing capacity enhancement of 4.8 million tonnes per annum. The current production capacity at Neelachal Ispat is around 1 million tonnes per annum, the annual report said. 

 

At Tata Steel Meramandali, the company's objective is to operate a 2.5 million tonnes per annum thin slab caster and rolling facility. Tata Steel Meramandali, which is a major flat steel manufacturing hub, had a capacity of 5.6 million tonnes per annum at the end of FY26. Tata Steel also plans to have a new iron ore hub in Gadchiroli in Maharashtra, and a 6 million tonnes per annum greenfield plant in Maharashtra through a partnership with Lloyds Metals & Energy Ltd. 

 

Tata Steel Kalinganagar is ramping up to its combined Phase I and II capacity of 8 million tonnes per annum, while Tata Steel Gamharia contributes to the long products portfolio with about 1 million tonnes per annum capacity in speciality steels, according to the annual report. "We have also inaugurated the 750,000 tonnes per annum scrap-based electric arc furnace steelmaking unit in Ludhiana, Punjab," the company said. 

 

In FY27, the company plans to save INR 71 billion under the next phase of targeted cost reduction initiatives, according to the annual report. The company said it is shifting debt onshore to optimise working capital and maintain disciplined capital allocation.

 

MITIGATING GEOPOLITICAL RISKS

Amid the uncertainties due to geopolitical tensions, Tata Steel is running organisation-wide efficiency programmes targeting raw materials, power, fuel, and supply chain logistics to cushion margins across volatile commodity cycles, according to the annual report. 

 

"Tata Steel manages one of the industry's most complex value chains, moving more than 100 million tonnes of raw materials and approximately 32 million tonnes of finished goods. This vast supply chain is exposed to the rising geopolitical conflict, particularly in the Middle East, leading to logistical disruptions that increase transit times, costs and reliability risks," the company said. 

 

As part of the mitigation measures, the company has strengthened import resilience through long-term port partnerships, new flux routes, alternative sourcing, and freight-cost hedging, as per the annual report. It has also enhanced inland logistics through upgraded rail infrastructure, new links, and dedicated rakes boost capacity and reliability. 

 

The company said the West Asia crisis introduced significant market volatility and supply disruptions in critical shipping routes like the Strait of Hormuz. As a mitigation measure the company deployed measures such as smart hedging for key raw materials, price forecasting tools, reverse auctions, and reliance on captive resources, according to the annual report. 

 

The high dependency on few geographies such as Australia and South Africa and logistics disruptions pose risks to supply chain reliability, the company said. Steps such as diversifying coal sourcing, securing long-term contracts, coal blend optimisation, evaluation of additional domestic sources, and improving rail transportation enhance supply chain resilience, it added.  

 

For the March quarter, the company reported a consolidated net profit of INR 29.26 billion on revenue of INR 632.70 billion. On Thursday, shares of Tata Steel closed 0.6% lower at INR 210.57 on the National Stock Exchange.  End

 

Reported by Astha Oriel

Edited by Avishek Dutta

 

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