Tata Steel misses quarterly profit view on increased raw materials costs, one-time charges
15/05/2026 14:04
May 15 (Reuters) - Tata Steel TISC.NS, India's second-largest maker of steel by market capitalisation, posted a smaller-than-expected fourth quarter profit on Friday, hurt by increased raw materials costs and one-off charge related to restructuring at its Netherlands unit. Consolidated net profit more-than-doubled to 29.26 billion rupees ($304.9 million) for the quarter ended March 31, but missed the average analysts estimate of 30.8 billion rupees, per data compiled by LSEG. Prices of coking coal, a key raw material for steelmakers, increased for a second straight quarter amid ongoing gas shortages linked to the U.S.-Israeli war against Iran, which lifted coal consumption. The steelmaker's cost of materials consumed rose 16.7%, and total expenses climbed 8% to 585.02 billion rupees. The firm incurred a net one-time charge of 3.4 billion rupees in the reported quarter, which included a 5.95 billion-rupee charge tied to its restructuring and redundancy provisions for its Netherlands unit. Indian steel producers saw a recovery in domestic steel prices during the January–March quarter, aided by safeguard duties and improved demand, following two straight quarters of sequential price declines, analysts said. Tata Steel's domestic steel production rose more than 14% on-year to 6.22 million tonnes, while deliveries rose 10.5% to 6.19 million tonnes in the fourth quarter. The firm's consolidated total revenue from operations rose by 12.5% to 632.70 billion rupees, beating analysts' expectation of 624.21 billion rupees. The firm approved a dividend of four rupees per share for fiscal 2026. ($1 = 95.9650 Indian rupees) (Reporting by Anuran Sadhu in Bengaluru; Editing by Ronojoy Mazumdar) ((Anuran.Sadhu@thomsonreuters.com; +91 8697274436;))