Tata Steel Shares Under Pressure Despite Strong Operational Performance in Q3FY26

On January 8, 2025, Tata Steel shares came under pressure, slipping nearly 1 % and hitting an intraday low of ₹182.10 by 9:40 am on the BSE, after opening at ₹185.95. The decline in Tata Steel share price followed the release of its Q3FY26 business update, which triggered cautious investor sentiment despite strong operational performance.

Operational Performance Remains Robust in Q3FY26

During Q3FY26, Tata Steel India reported its highest-ever quarterly crude steel production at 6.34 million tonnes, marking a 12% increase both quarter-on-quarter and year-on-year. The growth was largely driven by higher output from the Jamshedpur and Kalinganagar plants. For the 9MFY26, crude steel production rose 6% year-on-year to ~17.2 million tonnes.

Higher production translated into record deliveries during the quarter, with Tata Steel India crossing the 6 million tonne delivery milestone for the first time. Domestic deliveries increased 9% sequentially and 14% year-on-year, supported by strong demand in the Indian market. On a nine-month basis, deliveries climbed 6% year-on-year to around 16.3 million tonnes.

Segment-Wise Highlights

Automotive & Special Products

The segment posted its best-ever quarterly volumes of about 0.9 million tonnes, registering a 20 % year-on-year increase. Growth was supported by faster OEM approvals for high-tensile grades from downstream facilities at Kalinganagar and specialty steel produced at the Jamshedpur combi-mill. For 9MFY26, volumes in this vertical grew 5 % year-on-year.

Branded Products & Retail

This vertical crossed the 2 million tonne mark for the first time in a quarter. Volumes rose 12% year-on-year, driven by strong performance from established brands such as Tata Tiscon, Tata Astrum, and Tata Steelium. On a nine-month basis, volumes increased 4 % year-on-year.

Industrial Products & Projects

Volumes stood at around 1.9 million tonnes, supported by value-added segments, particularly Engineering. The Engineering division achieved its highest-ever volumes for the first nine months, aided by critical international certifications for specialised applications in Oil & Gas and Shipbuilding. On a 9MFY26 basis, volumes in this vertical were up 3 % year-on-year.

Also Read: Tata Group Stocks Lose ₹5 Lakh Crore in a Year As TCS, Tata Motors, PV And Trent Drag Market Cap

Downstream and digital momentum

During the quarter, Tata Steel continued to strengthen its value-added and downstream portfolio. The Tubes and Tinplate businesses recorded double-digit year-on-year growth, while the Wires segment achieved its highest-ever quarterly volumes.

Meanwhile, the company’s e-commerce platforms, Tata Steel Aashiyana and DigECA reported a gross merchandise value (GMV) of ₹2,380 crore in Q3FY26, reflecting a sharp 68% year-on-year increase, underscoring growing digital adoption across customer segments.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.