Tata Steel Share Price Falls for 4th Straight Session; Q1 FY26 Production Stays Flat Amid Shutdowns

Tata Steel share price traded lower for the 4th consecutive session on July 9, at ₹161.90 on the NSE, down 0.31%. The stock has been reeling under pressure amid US tariff woes. 

The stock price extended fall on July 9, after the company released its provisional production and delivery figures for Q1FY26 post-market hours, revealing flat crude steel output and lower delivery volumes in India.

Tata Steel’s Maintenance Shutdowns Impact Volumes

In the April–June quarter of FY26, Tata Steel India reported flat crude steel production year-on-year at 5.26 million tons. However, delivery volumes dropped nearly 4% YoY to 4.75 million tons, compared to 4.94 million tons in Q1FY25.

This decline was primarily attributed to planned maintenance at:

• Jamshedpur: Reline of the G Blast Furnace
• Neelachal Ispat Nigam Limited (NINL)

While operations have resumed at NINL, the Jamshedpur reline is expected to conclude by July 2025.

International Operations: Mixed Performance Across Regions

• Tata Steel Netherlands: Production held steady at 1.70 million tons; deliveries rose slightly by 2% YoY to 1.50 million tons.
• Tata Steel Thailand: Posted a 6% YoY increase in production to 0.33 million tons.
• Tata Steel UK: Delivery volumes dropped sharply by 12% YoY to 0.60 million tons, as the company managed operations through downstream processing of purchased substrates. Meanwhile, construction work for the Electric Arc Furnace (EAF) project at Port Talbot is on track to begin this month.

Tata Steel’s Segment Highlights: India Deliveries

Despite the production challenges, several verticals showed resilience in their domestic performance:

1. Automotive & Special Products

• Deliveries stood at 0.77 million tons
• Supported by 4% YoY growth in high-end product segments
• Received grade approvals for ultra-high strength steel from the new continuous annealing facility at Kalinganagar, enabling Tata Steel to serve advanced mobility and light weighting demands

2. Branded Products & Retail

• Total deliveries: 1.46 million tons
• Tata Tiscon: 0.48 million tons
• Tata Astrum & Tata Steelium: Combined 0.81 million tons

3. Industrial Products & Projects

• Deliveries: 1.6 million tons
• Growth driven by Engineering and Ready-to-Use Solutions
• Engineering segment saw 5% YoY growth, driven by demand from Oil & Gas and Railways
• Smart solutions rose 66% YoY, indicating robust traction in value-added segments

Read More: Steel Ministry’s New Import Rule Deepens MSME Woes: GTRI Flags Risk of Losses.

Conclusion

While Tata Steel’s Q1FY26 production remained stable, the planned maintenance activities led to a dip in delivery volumes. The company, however, demonstrated operational resilience across its key business segments, particularly in branded and value-added products.

With international projects like the Port Talbot EAF underway and domestic operations returning to normal, the company’s focus remains on long-term capacity enhancement and value creation. Investors now await detailed financial results in the upcoming earnings release.

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