Tepid steel prices in the domestic market dragged down Tata Steel’s standalone revenue and profit for the fourth fiscal quarter, even as volumes saw a marginal uptick. A weak show in its European operations further weighed on the profitability of Asia’s oldest steelmaker.

The steelmaker will infuse $2.5 billion (about ₹21,411 crore) in its Singapore unit T Steel Holdings Pte. Ltd over the course of FY26 for repayment of debt and restructuring costs in subsidiaries, the company said Monday.

The company declared a dividend of ₹3.6 per share.

The company reported a consolidated profit of ₹1,201 crore in January-March, more than doubling from the same period last year. This was after losses in the Netherlands and the UK offset the company’s profitable operations in India.

Tata Steel’s standalone operations in India logged a net profit of ₹3,141 crore during the quarter, 19% less than the same period a year ago due to lower steel prices.

Consolidated revenue for the quarter was 4% lower year-on-year at ₹56,218 crore. Earnings before interest, tax, depreciation and amortization (Ebitda) remained flattish at ₹6,762 crore.

“FY2025 has been an important transition year for Tata Steel with significant developments across operating geographies,” said T.V. Narendran, chief executive officer and managing director, Tata Steel. During the year, the company commissioned India’s largest blast furnace at Kalinganagar, Odisha, decommissioned two blast furnaces in the UK and achieved production levels near rated capacity in the Netherlands, he said.

Quarterly sales in India were best-ever at around 21 million tonnes, up 5% year-on-year, aided by a ramp-up of the new blast furnace at Kalinganagar and capacity utilization close to 100% at the remaining operations, he said.

UK operations

In the UK, the company has transitioned to supplying its customers imported steel, which is processed at its downstream mills at Port Talbot. This has reduced its costs and losses.

The company reported an Ebitda loss of ₹873 crore in the UK during the quarter compared to a loss of ₹388 crore a year ago.

“Our Electric Arc Furnace project in UK is also progressing as per plan with award of key OEM contracts, receipt of planning permissions with construction likely to begin by July 2025,” said Koushik Chatterjee, executive director and chief financial officer, Tata Steel.

In the Netherlands, the company managed to resume production at full capacity after several quarters of reduced production due to maintenance-related shutdown of a blast furnace. The Dutch operations reported an Ebitda of ₹124 crore compared to a ₹296 crore loss a year ago.

“The discussion with the Government of Netherlands on the integrated decarbonization and environmental measures project continues to be intense and we are also engaged with the provincial and environmental authorities on the above,” Chatterjee said.

Tata Steel stock gained 6.16% to close at ₹151.55 on Monday on the BSE. The benchmark Sensex gained 3.74% during the session after tensions between India and Pakistan eased and amid progress in trade negotiations between the US and China.