#1QWithCNBCTV18 | Tata Steel Up 2% After An In-Line Q1FY27
TV Narendran, CEO & MD, Tata Steel tells CNBC-TV18
EBITDA/tonne will dip in Q2FY27 but volume will be higher in India QoQ
Fire in Port Talbot will result in a hit of £5-10 m, insurance is looking into claim
UK EBITDA/tonne will move towards break-even by end of FY27
#tatasteel #2026results #2026earnings #earningsgrowth #revenuegrowth #margingrowth #profitgrowth #orderbookgrowth #ebitdamargingrowth #2026growth #cnbctv18 #cnbctv18market #businessnews #businessnewstoday #businessnewsinenglish #sharemarkettoday
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What T. Narendran said
Written from the verified transcript and checked against it. Every figure links to the moment it was said.
Tata Steel's Q1FY27 was good despite some shutdowns, with coking coal prices up $15 per ton last quarter and expected to rise $5 per ton next quarter. Realizations for Q2 are forecast to be 1,500 rupees per ton lower than Q1 due to softer long product prices. EBITDA per ton may fall, but higher volumes in Q2 should keep rupee crore EBITDA stable. The Netherlands operations should improve in Q2 with permission to run the DSP after a 4-week shutdown from August 5th. The UK business is nearing breakeven and expected to achieve positive EBITDA by end of year. The fire at Port Talbot's pickling line had limited impact, with production shifted to Llanwern and minimal bottom-line effect. NINL expansion is underway with board approval, aiming for 48 months, targeting 5 million tons of long products. No inorganic growth plans currently; focus on consolidating existing subsidiaries.
Key takeaways
Q2FY27 realizations forecast 1,500 rupees per ton lower than Q1 due to softer prices, especially long products
Netherlands DSP restart expected August 5th; Q2 volumes and margins to improve, Europe to be positive EBITDA
UK business expected to reach positive EBITDA by end of the year, close to breakeven in Q2
NINL expansion timeline set at 48 months; will add 5 million tons of long products capacity
No inorganic growth plans; consolidating holdings in subsidiaries like Tata BlueScope and TMILL
1:12So, effectively, your EBITDA per ton for the India business could be ballpark around 1,500 to 2,000 rupees lower in quarter two if we compare it to quarter one?
1:35Do you see things get back to profitability, and by when does it get to its normal run rate?
2:48And if you have a number that you want to quantify because of this particular fire, what will the potential loss that comes in your books?
4:06Since Netherlands is going to improve and the UK business you're not seeing any big impact, do you think it returns back to the green in this quarter itself?
But, now on to our first earnings conversation on the show. Tata Steel reported a rather good set of numbers for the first quarter, particularly driven by the India business. Our colleague Nigel spoke to T. V. Narendran, who is the CEO and MD at Tata Steel, and began by asking about how he expects to see realizations for the company pan out from here on, and the rising cost of coking coal on the way ahead.
It's been a good quarter for India. We could have done better in terms of volumes. We had some shutdowns planned, and the recovery from some of those shutdowns took longer than we had thought. But, overall, it's been a good quarter. We were helped, of course, last quarter by the markets at least in April and May. Coking coal prices went up last quarter. It went up about $15 per ton compared to the quarter before that. Going forward, we expect coking coal prices to be about $5 higher per ton next quarter compared to this quarter. Realizations for Q2, we are forecasting 1,500 rupees per ton lower than Q1. Because some of the prices have settled a bit lower, long products particularly. Flats are still holding out a bit, but 1,500 rupees per ton lower than Q1 is what we are forecasting for Q2.
So, effectively, your EBITDA per ton for the India business could be ballpark around 1,500 to 2,000 rupees lower in quarter two if we compare it to quarter one?
Possibly, yes. EBITDA per ton could be lower, but we'll have higher volumes in Q2 compared to Q1. So, EBITDA rupees crore need not be lower. The rupees per ton can be lower, but not rupees crore.
Got it. All right, let's talk about the Netherlands operations then. It obviously had a one-off in the past quarter, which was the shutdown. Do you see things get back to profitability, and by when does it get to its normal run rate?
So, I think we'll certainly see a better Q2 than Q1 both in terms of production volumes and in terms of margins. Because in Q1 you had the DSP impact and some one-off impacts also because of the Middle Eastern crisis. But what we're positive about is the prices are still holding out in Europe. So, we'll see that accruing to the margins. We'll see better volumes because we've got the permission now to run the DSP which was shut down for 4 weeks starting August 5th. So, that'll allow us some run time and hopefully get the clearance to run it regularly after that. So, we are expecting Q2 to be better than Q1 for Netherlands.
Got it. All right. So, things start moving up. So, that pollution issue is basically getting more or less resolved since the plant will be up and running.
One part of it, the DSP which is 20% of our production was shut down. So, hopefully that should start running from August and if you're able to deliver good numbers for the 4 weeks that we have then we will have the permission to run beyond that. So, I think we are hopeful that the worst is behind us.
Got it. Let's talk about UK then. UK, the losses have been coming down, which is good to see. There was a fire though, in the last 45 days to around 2 months or thereabouts. So, how does that impact numbers in the coming quarter? Is that plant insured? And if you have a number that you want to quantify because of this particular fire, what will the potential loss that comes in your books?
Yeah. So, it was a big fire in the pickling line in the cold rolling mill in Port Talbot. But the good thing is our teams responded very quickly, very well. So, we had no injury. Equipment and the plant was damaged but no one was hurt. We had another similar line in Clan won which is about an hour away from Port Talbot and which we had mothballed earlier. So, we restarted that line. So, most of the volumes that were being produced in Port Talbot we are producing in Clan won now. So, the impact to the bottom line is not significant, maybe about 5 to 10 million pounds. And going forward, of course insurance is looking at it and I don't want to comment on that. But going forward this line anyway was to be replaced by a new line end of next year. That was part of our transformation plan. So, I think for now we are okay. We'll use our Clan One line till we get started with a new line which is coming up in Port Talbot by the end of next year.
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Narendran, T. (2026, July 31). An In-Line Q1FY27 For Tata Steel | Will Look At Organic Growth To Increase Capacity, Says Company [Interview transcript]. CNBC-TV18. CEOInterviews.AI. https://ceointerviews.ai/interview/1146595/
MLA
T. Narendran. "An In-Line Q1FY27 For Tata Steel | Will Look At Organic Growth To Increase Capacity, Says Company." CNBC-TV18, 31 Jul. 2026. Transcript, CEOInterviews.AI, https://ceointerviews.ai/interview/1146595/.
BibTeX
@misc{narendran2026_1146595,
author = {T. Narendran},
title = {An In-Line Q1FY27 For Tata Steel | Will Look At Organic Growth To Increase Capacity, Says Company},
howpublished = {Interview transcript, CNBC-TV18. CEOInterviews.AI},
year = {2026},
month = {jul},
url = {https://ceointerviews.ai/interview/1146595/},
note = {Speaker-attributed transcript with timestamps}
}
