Tata Steel records best-ever third-quarter performance amid operational advancements

Tata Steel Limited announced record-breaking production and delivery volumes for the third quarter of FY2025, reinforcing its position as a global leader in steel manufacturing. The company’s operational advancements, particularly in India and the Netherlands, played a pivotal role in achieving these unprecedented milestones.

A Record-Breaking Quarter for Tata Steel India

Tata Steel India achieved its highest-ever third-quarter crude steel production at 5.68 million tons, an 8% increase quarter-on-quarter (QoQ) and a 6% rise year-on-year (YoY). This growth was driven by the commissioning of a 5 million tons per annum (MTPA) blast furnace at the Kalinganagar plant, which became operational in September 2024. The facility is currently scaling up operations to its rated capacity of approximately 8,000 tons per day, contributing significantly to the company’s output.

Delivery volumes in India also set a new record, reaching 5.29 million tons, an 8% YoY increase. Domestic demand remained robust, bolstered by strong sales in the automotive, construction, and retail sectors. Strategic export initiatives further complemented domestic growth, enhancing the company’s market share.

Strengthening Market Presence Through Innovative Solutions

Tata Steel has made considerable strides in the automotive and special products sector, with deliveries reaching 2.3 million tons during the nine months of FY2025, reflecting a 3% YoY growth. The Continuous Annealing Line at Kalinganagar, launched in December 2024, secured key approvals from major original equipment manufacturers (OEMs), further cementing the company’s position as a trusted supplier of high-end products.

Branded product deliveries, including Tata Tiscon and Tata Steelium, witnessed remarkable YoY growth of 20% and 7%, respectively. These brands have become integral to the company’s strategy of catering to diverse market segments, from large-scale industrial projects to small and medium enterprises (SMEs).

European Operations Deliver Strong Results

In Europe, Tata Steel Netherlands demonstrated a strong performance, with liquid steel production climbing to 1.76 million tons in Q3 FY2025. This marks a significant YoY improvement, attributed to enhanced operational efficiencies. Delivery volumes also grew 16% YoY for the nine months, reflecting a well-executed production strategy.

Conversely, Tata Steel UK faced challenges following the closure of its blast furnaces. Despite this setback, the company restructured its supply chain to ensure uninterrupted service to customers. Delivery volumes for the nine months stood at 1.87 million tons, reflecting subdued demand conditions.

Digital and Sustainability-Driven Growth

Tata Steel’s e-commerce platform, Tata Steel Aashiyana, emerged as a key growth driver, reporting a 37% YoY increase in revenue to ₹2,154 crores. This surge was attributed to customer-centric enhancements and strategic initiatives aimed at individual home builders.

The company also underscored its commitment to sustainability, with over 90% of its Indian steel production now sourced from ResponsibleSteel certified sites. Tata Steel has set an ambitious target of achieving net-zero emissions by 2045, positioning itself as a leader in sustainable steel production.

Looking Ahead

Tata Steel’s record-breaking performance in Q3 FY2025 underscores its ability to adapt to dynamic market conditions while advancing its sustainability and digital transformation goals. By leveraging innovative technologies, expanding its branded offerings, and optimizing global operations, the company is poised to maintain its trajectory of growth and leadership in the global steel industry.