Tata Steel Allocates ₹15,000 Crore Capex for FY26, Prioritises Indian Operations

Tata Steel, one of the world’s leading steel producers, has announced a substantial capital expenditure of ₹15,000 crore for the current FY26, spanning its operations in India, the UK, and the Netherlands. Company officials shared details about the investment and ongoing transition strategies aimed at boosting production efficiency and reducing emissions.

Major Investment Focus on Indian Operations

T V Narendran, CEO & MD of Tata Steel, stated, "For FY26, we are looking to have a capex of ₹15,000 crore." Of this, about 80% will be invested in India, reflecting the company’s continued emphasis on domestic expansion and modernisation. Executive Director and Chief Financial Officer Koushik Chatterjee added that ₹11,000 crore is earmarked for India, ₹1,900 crore for the UK, with the remaining directed to the Netherlands.

In India, Tata Steel is enhancing its production capacity with the ramp-up of a 5 MTPA blast furnace at Kalinganagar and the construction of an electric arc furnace (EAF) in Ludhiana. The company’s capital expenditure in Q4 FY25 stood at ₹3,220 crore, contributing to a total capex of ₹15,671 crore for the full FY25 period.

Green Transition and Strategic Moves in Europe

Tata Steel’s UK operations include a 3 MTPA facility at Port Talbot, South Wales. The company is transitioning from the traditional blast furnace route to a low-emission EAF process using locally sourced scrap. It has received planning permission for the EAF project at Port Talbot, with site activity set to begin in July 2025.

In the Netherlands, the IJmuiden plant produced an estimated 6.75 MTPA of liquid steel in FY25. The company is pursuing a transformation programme to maximise production efficiency, reduce fixed costs, and optimise margins. Discussions continue with the Dutch government and local authorities on an integrated decarbonisation and environmental project. Addressing concerns from workers regarding these transitions, Chatterjee said, "We are in talks with them for amicable solutions."

Tata Steel recently reported a consolidated net profit of ₹1,200.88 crore for the March quarter, more than doubling from the previous period, despite a 3.7% decline in total income to ₹56,679.11 crore. India generated ₹34,661 crore in revenue and an EBITDA of ₹7,418 crore in FY25. UK revenues were £551 million, with an EBITDA loss of £80 million, while the Netherlands posted €624 million in revenue and €14 million in EBITDA.

Read More: Tata Steel vs Jindal Stainless: Which Steel Manufacturer Delivered Highest Earnings in Q4FY25

Tata Steel Share Performance 

As of May 14, 2025, at 1:10 PM, Tata Steel share price is trading at ₹155.07 per share, a surge of 3.77% from the previous closing price. Over the past month, the stock has surged by 13.68%

Conclusion

Tata Steel’s capex allocation for FY26 reflects its strategic focus on expanding Indian operations and transitioning towards cleaner, more sustainable steel production in Europe. As the company engages with stakeholders and governments, it aims to balance growth with environmental responsibility and operational efficiency.

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