Tata Steel Ltd (FRA:HWHG) Q4 2025 Earnings Call Highlights: Record Production and Strategic ...

In This Article:

  • Crude Steel Production: 21.7 million tons for the full year.

  • Deliveries: 20.9 million tons for the full year.

  • India Capacity Utilization: Close to 100% excluding Kalinganagar.

  • Automotive Segment Deliveries: Enhanced by new product development and continuous annealing line at Kalinganagar.

  • Branded Products and Retail Volumes: 7 million tonnes, with Tata Tiscon volumes growing by 19% year-on-year.

  • Consolidated Revenue (Q4 FY25): INR 56,218 crores, up 5% quarter-on-quarter.

  • Consolidated EBITDA (Q4 FY25): INR 6,762 crores, margin of 12%.

  • India EBITDA Margin: 21%, translating to INR 7,418 crores.

  • Netherlands EBITDA (Q4 FY25): EUR 14 million.

  • UK EBITDA Loss (Q4 FY25): GBP 80 million.

  • Operating Cash Flow (Q4 FY25): INR 7,700 crores.

  • Full Year Consolidated EBITDA (FY25): INR 25,802 crores, a 10% growth from FY24.

  • Net Debt: INR 82,579 crores, reduced by INR 6,200 crores in the last six months.

  • Capital Expenditure (FY25): INR 15,671 crores.

  • Planned Capital Expenditure (FY26): INR 15,000 crores.

  • Structural Cost Takeout (FY25): INR 6,600 crores.

  • Targeted Cost Takeout (FY26): INR 11,500 crores.

  • Stand-alone Net Worth (March '25): INR 1,23,544 crores.

  • Consolidated Net Worth (March '25): INR 87,770 crores.

Release Date: May 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Tata Steel Ltd (FRA:HWHG) achieved the highest ever crude steel production of 21.7 million tons and deliveries of 20.9 million tons for the full year.

  • The company has successfully commissioned India's largest blast furnace at Kalinganagar, enhancing cost competitiveness and product mix.

  • Tata Steel Ltd (FRA:HWHG) has been recognized by World Steel as a Sustainability Champion for the eighth consecutive year.

  • The company reported a consolidated EBITDA of INR 25,802 crores for FY25, reflecting a 10% growth compared to the previous year.

  • Tata Tiscon volumes grew by about 19% year-on-year, marking the second consecutive year of double-digit growth.

Negative Points

  • UK operations faced challenges with steel prices still 8% below last year's levels due to import pressures and subdued demand.

  • Tata Steel UK reported an EBITDA loss of GBP 80 million in the fourth quarter due to higher substrate prices and reduced revenue per tonne.

  • The company is facing increased costs in Europe due to the reduction in carbon allowances and CO2 levies, impacting profitability.

  • Despite cost transformation efforts, external factors such as fluctuating steel prices and high regulatory costs continue to affect performance.

  • The company has significant debt, with a net debt standing at INR 82,579 crores, although it has been reduced from previous levels.