Tata Steel breaks records in India while UK blast furnaces go cold in FY2025 steel shakeup

Tata Steel Limited has released its provisional production and delivery volumes for the fourth quarter and full fiscal year 2025, revealing contrasting trajectories across its global operations. The company reported record performance in its Indian operations, underpinned by expanded capacity and robust domestic demand, while the United Kingdom operations showed continued contraction following strategic shutdowns. These figures, disclosed on April 7, 2025, underscore Tata Steel’s evolving footprint in the global steel industry amid macroeconomic pressures and its internal pivot toward high-efficiency, high-yield assets.

How did Tata Steel India achieve record deliveries and a 5% annual rise in production?

Tata Steel India posted a 5% year-on-year rise in crude steel production to 21.75 million tonnes for FY2025, up from 20.78 million tonnes in the previous fiscal year. This growth was largely credited to two key developments: the commissioning of India’s largest blast furnace at its Kalinganagar facility and increased output at Neelachal Ispat Nigam Limited, which Tata Steel had acquired in 2022.

The fourth quarter (4QFY2025) alone saw production of 5.51 million tonnes, slightly down from 5.69 million tonnes in Q3FY2025 due to scheduled relining of the “G” blast furnace in Jamshedpur. However, the company more than compensated for this slight sequential dip by posting its best-ever quarterly delivery volumes in India, hitting 5.6 million tonnes—up 6% quarter-on-quarter and 3% year-on-year.

These figures illustrate Tata Steel’s strategic alignment with the growing Indian infrastructure and automotive sectors, which are driving sustained steel demand. The company appears to be capitalising on domestic tailwinds to offset challenges in its European operations, signalling a broader reorientation toward high-growth regions.

What segments drove Tata Steel India’s delivery volume success?

Tata Steel’s India-based delivery volumes hit a new record of 20.94 million tonnes in FY2025, a 5.2% increase from FY2024. This was led by strong performance across its three major verticals: Automotive & Special Products (A&SP), Branded Products & Retail (BPR), and Industrial Products & Projects (IPP).

The A&SP segment saw relatively stable annual volumes of around 3.1 million tonnes, but quarterly growth was notable. In Q4FY2025, deliveries jumped 10% quarter-on-quarter. This was marked by a major technical milestone—Tata Steel became the first Indian steelmaker to localise high-strength hot rolled CP780 grade steel for automotive use, enhancing its strategic relevance in the auto supply chain.

BPR deliveries rose 7% year-on-year to approximately 7 million tonnes, driven by strong consumer demand and brand performance. Tata Tiscon, the retail arm, recorded its best-ever annual deliveries at 2.4 million tonnes. Likewise, Tata Astrum and Tata Steelium—brands focused on small and medium enterprises (SMEs)—jointly delivered a record 3.8 million tonnes.

The IPP segment delivered 7.3 million tonnes, steady on an annual basis, but Q4 volumes rose 14% quarter-on-quarter. Engineering solutions and ready-to-use steel products contributed heavily to this surge, reflecting the market’s tilt toward value-added applications.

The company’s e-commerce platform, Tata Steel Aashiyana, which caters to individual home builders, also showed robust growth. Revenues grew 60% year-on-year to ₹3,550 crore, highlighting increasing digital adoption and consumer-driven steel demand.

What do the European operations indicate about Tata Steel’s restructuring?

While Indian operations surged, Tata Steel’s European assets presented a more subdued picture. In the Netherlands, Tata Steel Netherlands posted a recovery with FY2025 liquid steel production rising to 6.75 million tonnes from 4.81 million tonnes in FY2024. Deliveries also rose from 5.33 million tonnes to 6.22 million tonnes over the same period.

This rebound follows the completion of blast furnace #6 relining in February 2024, which had previously curtailed production. These figures suggest the Dutch operations are stabilising, albeit still operating below pre-pandemic peak levels, which stood closer to 7 million tonnes annually.

In stark contrast, Tata Steel UK has largely wound down primary steelmaking. After both blast furnaces were shut by the end of Q2FY2025, the UK unit’s crude steel output plummeted to just 1.07 million tonnes for the year—down from 2.99 million tonnes in FY2024. Deliveries also dropped to 2.51 million tonnes, reflecting the shift from primary steelmaking to processing purchased steel substrates.

This reflects Tata Steel’s broader strategic decision to rationalise its legacy UK operations, which have long been cost-intensive and vulnerable to global commodity price volatility. The exit from primary steelmaking in the UK aligns with its sustainability roadmap and attempts to optimise capital deployment.

What is the latest investor sentiment on Tata Steel stock?

Despite its operational achievements in India, Tata Steel’s stock has recently come under pressure. On April 7, 2025, shares of Tata Steel Limited closed at ₹129.60 on the National Stock Exchange, representing a sharp 7.73% decline for the day. The downturn was part of a broader correction in Indian metal stocks, spurred by investor concerns over potential U.S. tariffs on Indian steel exports.

Over the past month, the stock has declined nearly 14.6%, approaching its 52-week low of ₹122.60. This is significantly below its 52-week high of ₹184.60, signalling bearish momentum in the near term. Technical indicators support this trend, with a bearish weekly MACD crossover recorded on April 4, historically linked to further downside risk of nearly 10% on average over a seven-week window.

While market sentiment is currently cautious, some analysts continue to see value in the long-term fundamentals of Tata Steel. Axis Securities has assigned a target price of ₹155, implying potential upside from current levels. The firm points to Tata Steel’s domestic market strength, cost optimisation efforts, and diversification across geographies as positive drivers.

Investors may consider holding their positions while monitoring trade policy shifts and global steel price trends. For those looking to enter, current levels may offer value, but only with a long-term horizon and tolerance for short-term volatility. Those with existing exposure should track domestic demand momentum and margin trends to inform a hold-or-rebalance strategy.

Is Tata Steel well-positioned for the next decade of steelmaking?

Tata Steel’s FY2025 operational results reinforce its broader transformation journey, built around digital integration, decarbonisation, and regional focus. The company has committed to achieving net-zero emissions by 2045 and is progressively shifting its portfolio toward more efficient and greener facilities.

In recent years, Tata Steel has received multiple accolades reflecting its transformation efforts. It was awarded Global Lighthouse recognition by the World Economic Forum for its Jamshedpur, Kalinganagar, and IJmuiden (Netherlands) facilities—highlighting advanced digital practices in manufacturing. It has also received ResponsibleSteel™ certification for over 90% of its India-based production sites, further cementing its ESG credentials.

Financially, Tata Steel reported consolidated revenue of approximately $27.7 billion for FY2024 and maintains an annual crude steel capacity of 35 million tonnes. This geographic and product diversification supports its resilience, but the company continues to grapple with volatile pricing in global steel markets and evolving regulatory environments, especially in Europe.

In the global steel industry, Tata Steel remains one of the few producers with a significant footprint across Asia and Europe. Its pivot toward strengthening Indian operations while recalibrating its European footprint reflects an increasingly bifurcated strategy: expanding capacity and product depth in high-growth markets while retreating from low-margin, high-carbon assets.

This strategy may position the company well to navigate global shifts in steel demand, which are increasingly influenced by energy transition policies, trade barriers, and regional infrastructure investments. In India, government-led capital expenditure and housing incentives continue to buoy steel consumption, offering Tata Steel sustained tailwinds.

However, challenges remain. Steel prices have shown volatility amid slower global growth, and energy costs—particularly in Europe—continue to pressure margins. Tata Steel’s ability to offset these challenges through operational efficiency, product innovation, and digital enablement will be critical in the coming quarters.

As provisional figures show, Tata Steel is poised for continued leadership in the Indian market, even as it strategically withdraws from high-cost legacy operations in the UK. The fourth quarter performance, particularly in the branded and retail verticals, signals strong consumer alignment. With a digital-first approach and ambitious decarbonisation goals, the company is clearly focused on building a future-ready steelmaking business.