Tata Steel looking beyond 40 MTPA; planning next phase of growth, says Chandrasekaran

Tata Steel is progressing steadily towards its long-term target of 40 million tonnes per annum (MTPA) capacity and has already begun planning for the next phase of growth, Chairman N Chandrasekaran said here on Thursday at the company’s 119th Annual General Meeting (AGM) conducted through videoconferencing, from its Bombay House headquarters.

Speaking at the AGM, Chandrasekaran highlighted Tata Steel’s expansion strategy, saying that the recent commissioning of Phase II at the Kalinganagar plant has increased Tata Steel’s total capacity to 26.1 MTPA.

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“During the year, the Company has taken various initiatives for expansion in India. We achieved a major milestone with the commissioning of Phase II expansion at Kalinganagar, taking our total capacity to 26.1 MTPA and expanding the site capacity from 3 MTPA to 8 MTPA. With India’s largest blast furnace and state-of-the-art cold rolling mill, we have strategically enhanced our flat products portfolio and strengthened our presence in high-value, technology-intensive segments such as automotive and defence. This is a decisive step towards our long-term vision of achieving 40 MTPA capacity,” Chandrasekaran said.

Chandrasekaran reviewed the company’s FY26 performance and said that Tata Steel delivered a consolidated revenue of Rs 2,32,140 crore, supported by record crude steel production of around 23.4 million tonnes. Consolidated EBITDA rose 35% to Rs 34,848 crore, while Profit After Tax (PAT) increased by 243% to Rs 10,886 crore, he said, adding that the board has recommended a dividend of Rs 4 per equity share.

“The company continues to focus on value-added products and digital engagements, achieving strong growth, supported by expansion into defence and shipbuilding. The company is also expanding its downstream capacity through tubes, tinplate and wires. During the year, the company undertook important strategic initiatives, including the consolidation of ownership in Tata Steel Colors and acquisition of a majority stake in Thriveni Pellets -– both of which are critical to its long-term competitiveness,” Chandrasekaran said.

He stated that Tata Steel’s position in India will be further reinforced through the planned expansion of Neelachal Ispat Nigam Limited (NINL), along with the recently inaugurated 0.75 MTPA electric arc furnace in Ludhiana, Punjab, which will significantly strengthen the company’s long products portfolio. The Tata Steel board has also approved the amalgamation of NINL into Tata Steel, which will enhance synergies and simplify the corporate structure, Chandrasekaran said.

“In Europe, we have entered into a decisive transformation phase. In the UK, we broke ground on the GBP 1.25 billion electric arc furnace (EAF) project at Port Talbot, marking the commencement of the UK’s largest low-carbon steelmaking transition, in partnership with the UK government. The project is progressing in terms of engineering, design and construction,” Chandrasekaran said.

Chandrasekaran said that in the Netherlands, the operating environment has become challenging after the adoption of certain environmental regulations now exceeding European Union standards.

“Emission norms have tightened to levels where, for some of Tata Steel Netherland’s legacy assets, viable solutions are not currently feasible within regulatory accepted timelines. The company is actively engaging with the Dutch government and relevant stakeholders to develop a forward pathway for Tata Steel Netherland (TSN) which is environmentally compliant, financially affordable and viable over the long-term. During the year, Tata Steel Netherlands also acquired Vattenfall’s cogeneration power plants to strengthen its energy security and support transition objectives,” Chandrasekaran said.

Chandrasekaran stated that as Tata Steel continues its transformative journey, the focus of the management would be on technology and digital transformation.

“We have deployed over 860 artificial intelligence (AI) models across the value chain, driving real-time improvements in yield, safety, and energy efficiency. This year, our digital platforms Aashiyana and DigECA, achieved a combined Gross Merchandise Value of Rs 9,360 crore, growing by 161% from the previous year. We aim to leverage technology and advancement in manufacturing to enhance the company’s competitive position and maintain market leadership,” Chandrasekaran said.