Tata Steel’s UK operations, which have largely been a struggle since the acquisition, are expected to turn earnings before interest, tax, depreciation, and amortisation (Ebitda)-positive this financial year (2025–26/FY26) and possibly profitable by the next.
Responding to shareholder queries at Tata Steel’s annual general meeting, Tata group chairman N Chandrasekaran said, “We expect the UK to perform much better this year compared to last year — it will definitely be Ebitda-positive.”
He added that the company was working towards making it profit after tax (PAT)-positive.
“Losses in the UK will be wiped out. And going forward, this year or the next, it will become PAT-positive,” he said.
Tata Steel is transitioning to green steelmaking by shifting to electric arc furnace (EAF)-based production from the blast furnace at Port Talbot in Wales, which is scheduled for completion by 2027–28.
The total investment in the project is £1.25 billion, which includes £500 million in support from the UK government.
Groundbreaking for the project is expected in the first half of July.
The blast furnaces have already been decommissioned, and the company is currently supporting downstream client businesses by sending slabs from India, the Netherlands, and even the open market.
In the Netherlands, Tata Steel is in discussions with the Dutch government for financial and policy-level support on its decarbonisation plan, Chandrasekaran said.
Tata Steel and Tata group chairman also outlined the company’s capital expenditure (capex) plans going forward.
“Broadly, Tata Steel has been spending around Rs 15,000 crore on capex last year and this year,” said Chandrasekaran, adding that the spend is expected to continue in the same range “for quite some time”.
He said the capex would broadly cover maintenance and expansion in India over the next seven to eight years.
The EAF in Ludhiana will be completed by the end of this year.
“We will replicate similar 0.5 million tonne (mt) projects across India,” he said.
Investment in the UK will begin, and once the decarbonisation plan in the Netherlands is approved, there will be capex there as well.
Tata Steel has set a target of achieving 40 mt of capacity in India.
On the timeline for this, Chandrasekaran said, “There is no doubt in our mind that we have to expand capacity.”
However, he added, “We also need to see how many projects can be executed at any point in time.
"We need to ensure that our investment matches the cash flow.”
Tata Steel will also invest in acquiring mining assets.
“Our iron ore mine capacity in India will come up for renewal and be auctioned again in 2029–30.
"With our increased footprint, we will need to increase our capacity.
"So we will always look for opportunities.”
Responding to questions on the market environment, Chandrasekaran said that China continues to export about 100 mt of steel.
“That is definitely affecting the overall steel price, not only in global markets but also in India,” he said, adding that despite the safeguard duty, steel prices remain soft.
Still, based on overall performance, increased capacity, and current spread levels, Tata Steel is expected to post better revenues, Ebitda, profits, and cash flow in FY26 than in 2024–25.
Tata Steel eyes 90-day grievance resolution
Responding to shareholder queries on grievances, sexual harassment cases, and customer complaints, Chandrasekaran said Tata Steel aims to resolve any issue raised within a maximum of 90 days.
“The fact that complaints are coming is something we want to encourage, because we want a culture where people are able to speak up with the hope that their complaints will be taken up and resolved.
"That is one reason the number is going up,” he said.
On customer complaints, he noted that Tata Steel has forayed into the retail business, where individual complaints tend to be higher than in the business-to-business segment.
Chandrasekaran also said safety was a priority for the company and that the goal remains to be a no-fatality organisation.
