Tata Steel Invests ₹33,873 Cr for NINL Expansion to 6.2 MTPA

Tata Steel’s board has officially sanctioned a substantial investment of ₹33,873 crore for the expansion of Neelachal Ispat Nigam Limited (NINL). This strategic move aims to increase NINL’s steelmaking capacity by 4.8 million tonnes per annum (MTPA), bringing its total capacity to 6.2 MTPA.

This initial growth phase for NINL is designed to reinforce Tata Steel’s position in the long products segment, specifically targeting the expanding retail market where demand for branded products continues to rise. The company announced these plans alongside its robust financial and operational results for the first quarter of FY27.

First Quarter Financial Highlights

Tata Steel reported consolidated revenue of ₹60,794 crore for the quarter, with an EBITDA of ₹9,370 crore, representing a 25% increase compared to the previous year. This performance reflects higher domestic deliveries, improved profitability, and a sustained focus on value-added offerings.

• India’s domestic deliveries surged 11% year-on-year, reaching 4.85 million tonnes.
• Net steel realizations saw a quarter-on-quarter increase of ₹5,991 per tonne, driven by strong market demand and an optimized product mix.
• The Automotive & Special Products division achieved its best-ever first-quarter performance, with high-end steel product sales up 21%.
• Branded portfolios like Tata Tiscon and Tata Steelium posted healthy growth exceeding 30% year-on-year.
• Digital commerce platforms, Aashiyana and DigECA, generated gross merchandise value of nearly ₹2,200 crore, a 61% increase from the prior year.

NINL itself delivered a strong quarterly performance, reporting an EBITDA of ₹498 crore with an EBITDA margin of 29%, which bolsters confidence in the recently approved expansion project. India emerged as the strongest growth market for Tata Steel, contributing significantly to these positive outcomes.

Leadership Outlook and Investment

TV Narendran, CEO and Managing Director, noted the sustained strong performance despite global uncertainties, emphasizing India’s pivotal role in Tata Steel’s business. He stated that robust domestic demand, an improved product mix, and growing branded product sales were key drivers, with the NINL expansion set to solidify the company’s position in high-margin long products and support future growth.

CFO Koushik Chatterjee highlighted a significant improvement in India’s EBITDA, which reached ₹19,162 per tonne during the quarter. He also pointed to signs of improvement in overseas operations, with Tata Steel UK reducing its EBITDA loss and the Netherlands business working to restart its Direct Sheet Plant.

During the quarter, Tata Steel invested approximately ₹3,579 crore in capital expenditure. The company’s net debt stood at ₹84,173 crore.