FY2025-26 was characterised by global pricing pressures through the first three quarters on the back of continuing record export levels out of China. This was coupled with disruptions in export markets for our European businesses due to US tariffs. Interventions to address excessive imports in India, Europe and the UK restored balance to the markets in the second half of the year, but the West Asia conflict in Q4 has increased uncertainty in terms of input costs and supply chain disruptions.

Despite external headwinds, our sustained focus on operational discipline and cost transformation helped us deliver a robust performance. With consolidated revenue reaching ₹2,32,140 crore, our consolidated EBITDA rose 35% y-o-y to ₹34,848 crore, representing a healthy 15% margin, a 320-bps improvement over the previous year. India operations were particularly strong, delivering an EBITDA of ₹34,272 crore, which translates to an EBITDA margin of 24%. This was on the back of a record production of 23.4 million tonnes and 'best-ever' deliveries of 22.5 million tonnes (an 8% increase y-o-y). In the Netherlands, EBITDA tripled to €267 million, while UK EBITDA losses nearly halved to £217 million. The cost transformation programme delivered about ₹10,868 crore of savings across geographies.

Our liquidity remains robust at ₹45,237 crore, providing a significant cushion against potential macroeconomic or geopolitical shocks. Operating cash flows improved by 52% to ₹35,064 crore, aided by a working capital release of ₹5,442 crore. This demonstrated resilience positions us well for our next phase of value creation and sustainable growth, even amidst temporary disruptions and structural shifts in global steel.

Reflecting our commitment to creating long-term value, the Board has recommended a dividend of ₹4.0 per equity share. This payout, consistent with our 85+ year history of uninterrupted dividends, rewards our shareholders while our resilient financial position also enables us to finance our capital-intensive investments in value-added downstream products and growth in our core markets.

In FY2025-26, we spent ₹14,559 crore on capital expenditure, and we plan to increase this to approximately ₹20,000 crore in FY2026-27, with 60% allocated to India. A major milestone was the commissioning of the 5 MTPA blast furnace at Tata Steel Kalinganagar, scaling this premier global steelmaking complex to 8 MTPA. We also inaugurated the 0.75 MTPA scrap-based EAF at Ludhiana, the first of a planned series of modular, agile, green and circular steelmaking units.

We have already commenced early site development work for the 4.8 MTPA Phase 1 expansion at NINL. Regulatory approvals are progressing steadily, and basic engineering, critical for a final capital allocation decision, is advancing well.

Our capital allocation strategy for FY2026-27 focuses on a balanced mix of sustenance projects, ongoing investments in value-added downstream and infrastructure projects, new technologies, and long-term growth projects, with a clear emphasis on India. This includes expansions in Tinplate and Wires, the HRPGL (Hot Rolled Pickling & Galvanising Line) facility at Tarapur, and the Coke Ovens project at Jamshedpur. In addition, we are continuing to invest in mining, a stronger supply chain and sustainability of operations.

Our long-term growth strategy remains anchored in expanding capacity, enhancing product mix, improving cost competitiveness, and building a more sustainable, technologically advanced manufacturing base to lead the Indian market.

Tata Steel currently has 100% iron ore supply security for our India operations through our captive mines, which produced 44 million tonnes this year. Our captive coal mines met 25% of our requirements in India, with raw coal production at ~6 million tonnes in FY2025-26.

In FY2025-26, we acquired majority stake in Brahmani River Pellets Limited to strengthen control over raw material supply and slurry pipeline logistics. We will continue to invest through this business, in infrastructure that will enable more efficient supply to our capacity expansions in future.

Tata Steel has bid for and acquired certain iron ore mining leases that we are developing. We will continue to take a balanced and structured approach to additional opportunities as they arise as part of new mining leases which are auctioned. Our mining leases in Jharkhand and Odisha approach expiry by FY2030 under the amended Mines and Minerals (Development and Regulation) Act, 1957, which requires auction-based allocation. To manage raw material supply risks through a diversified approach, our goal is to source at least 50% of our iron ore from captive mines to ensure stable operations and reduce the impact of possible supply disruptions.

Deleveraging remains a core enterprise priority. In FY2025-26, we reduced our Net Debt to ₹80,144 crore, bringing our Net Debt to EBITDA ratio down to a healthy 2.3x from 3.3x two years ago. We proactively prepaid around ₹7,556 crore of debt using internal cash flows.

For the last few years, we have been focusing on the onshoring of overseas debt to mitigate the rupee depreciation risks. As a result, the overseas debt has come down from about 50% of the total debt in FY2020-21 to 18% of the total debt in FY2025-26. Without this proactive onshoring, our gross debt would have been higher by ₹12,500 crore due to rupee depreciation alone. Our goal is to repay the remaining bonds issued by our overseas subsidiaries by FY2027-28.

These measures have helped reinforce the basis of our investment-grade credit ratings from S&P and Moody's. Our balance sheet strength also ensures that we retain financial flexibility required to fund investments in growth, value-added upstream and downstream assets and new technologies and decarbonisation through the business cycle.

In the UK, we have exited legacy heavy-end steelmaking at Port Talbot and are transitioning to a state-of-the-art 3.2 MTPA EAF facility, supported by a £500 million UK Government grant. This shift will reduce CO₂ emissions by 50 million tonnes over a decade. Major demolition work has been completed; fabrication and delivery of equipment are continuing at pace. National Grid has informed us of some potential delay versus the original planned date of the high voltage connection, but we are working closely with all stakeholders including the UK Government to mitigate the impact and develop revised schedules.

TSN had executed a non-binding Joint Letter of Intent with the Government of the Netherlands and the Province of North Holland in September 2025, based on plans for its integrated decarbonisation and environmental improvement project. At this time, we are continuing to work on various pre-conditions for the project with all stakeholders. This includes addressing the future of the coke and gas plants, and regulatory issues impacting the business including the future classification and treatment of slag. It also involves resolution of critical policy matters impacting the investment case, obtaining permits for the projects, and finalisation of the engineering, scheduling and business case for the project. Resolution of these matters is a pre-requisite for a final investment decision.

Our operating focus continues to be on reducing fixed costs and improving product mix to strengthen the profitability and sustainability of our European business.

TSN continues to engage closely and constructively with local regulators and authorities to address the evolving regulatory landscape at IJmuiden. Based on measurements by the Environment Agency indicating exceedances of certain prescribed emission limits at the coke and gas plants, TSN has received multiple notices of alleged non-compliance and has incurred penalties exceeding €20 million in FY2025-26. In April 2026, the Environment Agency and the Province formally communicated their intention to revoke certain operating permits and accelerate the closure of the coke and gas plants.

In response, TSN has undertaken a detailed technical and operational assessment and shared a comprehensive plan with the authorities, outlining a safe, responsible, and controlled timeline for closure that takes into account operational, environmental, and safety considerations. TSN is also parallelly exploring all available avenues, including legal recourse, to ensure that any transition is managed with due care and prudence, balancing environmental compliance with workforce safety and business continuity. Environmental standards in the Netherlands are among the most stringent globally. In some instances, these standards are also evolving, and currently there are limited technically and operationally feasible methods to measure, monitor, and meet the prescribed thresholds, particularly given the design and vintage of our coke oven assets.

TSN is also engaging with regulators on evolving requirements for the classification and disposal of steel slag in the Netherlands, where local standards are becoming increasingly stringent, beyond requirements in the rest of the European Union, and pose additional operational challenges.

Overall, our approach remains anchored in transparent engagement, technical rigour, and a commitment to ensuring the transition is executed in a safe, compliant, and responsible manner, while safeguarding the long-term sustainability of the business.

The turnaround of NINL has been a compelling success story. Since its acquisition, the plant has moved from being mothballed to operating at rated capacity for two years. In FY2025-26, NINL achieved a robust 23% EBITDA margin, contributing significantly to our India performance. Operationally, the plant hit record crude steel and sinter production levels, supported by sharp reductions in raw material consumption. We have also achieved full utilisation of process solid waste, reflecting our deep integration of sustainability. To further streamline governance and unlock synergies, the Board has approved the merger of NINL into Tata Steel, which is expected to be completed in FY2026-27. NINL now serves as a vital growth platform, and we have announced a 4.8 MTPA Phase-I expansion focused on long products. With a land bank capable of supporting 10 MTPA, NINL is strategically positioned near Kalinganagar to become a major hub for our value-added long products business, enhancing our overall market leadership.

During the year, Tata Steel executed a series of targeted acquisitions aimed at strengthening control across the value chain, enhancing downstream capabilities, and improving operational efficiency.

We acquired a 50.01% stake in Thriveni Pellets Private Limited for ₹635 crore, securing access to a 4 MTPA pellet plant and associated slurry pipeline through its subsidiary Brahmani River Pellets Limited. This reinforces our iron ore value chain and supply security.

We also completed the acquisition of the remaining stake in Tata BlueScope Steel, making it a wholly owned subsidiary – now rebranded as Tata Steel Colors Private Limited. This provides strategic flexibility to scale up the branded and colour-coated products segment and improve asset utilisation and product mix.

In the Netherlands, the acquisition of Vattenfall's IJmond power plants aims to secure energy integration and support TSN's transition to low carbon steel production.

More recently, the Board approved the acquisition of an additional 23% stake in TM International Logistics Limited for ₹335 crore, increasing our holding to 74%. This provides greater control over logistics operations, including rail movement and warehousing, enabling greater efficiencies in handling of over 150 million tonnes of materials annually while delivering structural cost advantages.

India remains a global bright spot, with steel demand projected to rise by 8-9% in 2026, driven by a ₹143 trillion infrastructure pipeline and rapid urbanisation^*. We expect our domestic deliveries to grow by an additional 2 million tonnes in FY2026-27 as Kalinganagar ramps up. The automotive sector remains strong, and we are consolidating our position as a preferred supplier through new grade approvals for high-strength steels. In the retail segment, Tata Tiscon now reaches 97% of India's districts.

Globally, the landscape is more complex. In the EU, policy measures, including tighter safeguards effective from July 1 and the ongoing implementation of CBAM, are improving pricing conditions while enabling a level playing field for local manufacturing. In the UK, revisions to import quotas are expected to bring a better balance to the market, which has otherwise been weak in demand terms.

However, the developments in West Asia have begun to exert pressure on supply chains and input costs, and these pressures are continuing into FY2026-27. The impacts on energy, oil, trade and currency markets will have follow on impacts on economic growth, steel consumption and profitability. We are actively monitoring performance triggers across geographies and focusing on operational resilience and cost optimisation to mitigate these impacts.

We remain committed to a Net Zero target by 2045. We are working on breakthrough technologies, including a HIsarna demonstration plant in Jamshedpur and the implementation of EASyMelt in one of our blast furnaces. In India, we inaugurated the 0.75 MTPA 100% scrap-based EAF in Ludhiana, designed for an emission intensity of <0.3 tCO₂e per tonne of steel. We have also secured 379 MW of renewable power, which will increase the renewable share to 6.4% in our power mix by FY2026-27. Our logistics decarbonisation reached a milestone with the first B24 biofuel-powered Capesize vessel shipment and the deployment of over 600 green mobility vehicles. We introduced a virtual Carbon Bank to track CO₂ reductions and have completed Life Cycle Assessments for 80% of our Indian products. Recognised as a worldsteel Sustainability Champion for the ninth consecutive year, we continue to lead the industry in environmental stewardship, balancing our natural capital commitments with disciplined financial execution and innovation.

Digitalisation is central to our operational rigour. We have deployed over 860 AI models across the value chain, driving real-time improvements in yield, safety, and energy efficiency. Our AI-driven predictive maintenance has reduced delays in super-critical equipment by 92%. On the commercial front, our e-commerce platforms, Aashiyana and DigECA, achieved $1 billion in annual sales, significantly enhancing our reach in the retail and SME segments. We are a leader in intellectual property, consistently filing over 100 patents annually and having developed over 550 new products in the last 5 years, including ultra-high-strength automotive steels and hydrogen-ready pipes. Our manufacturing facilities are increasingly sophisticated, with 78% of our steel now coming from World Economic Forum-recognised Global Manufacturing Lighthouses. By integrating Industry 4.0 principles and the DATOM framework, which has standardised 98% of KPI definition and shifted KPI reporting to system-driven models, we are improving cost transparency and operational reliability, ensuring Tata Steel remains a future-ready, technology-led enterprise in a rapidly evolving global landscape.

Through our Unified People Strategy, we continue to foster a high-performance culture centred on collaboration, agility, and continuous improvement. We are driving talent transformation through advanced learning platforms such as the Daily Management School of Excellence and Generative AI modules, helping create a future-ready workforce aligned with our strategic priorities.

Industrial relations remain strong, supported by structured engagement mechanisms and responsible workforce deployment. In India, we have further strengthened our approach to contract workforce management through improved welfare frameworks, grievance systems, and compliance monitoring.

On the safety front, we have strengthened governance through data-driven insights, AI-enabled monitoring systems, and enhanced training across all operations. While we have made steady progress in improving safety performance over the years, reducing our LTIFR by 38% over 15 years, we deeply regret the occurrence of nine fatalities across the Tata Steel Group in FY2025-26, including eight at Tata Steel India operations and one at Tata Steel UK. These incidents sharpen our resolve and reinforce our commitment to driving a stronger safety culture, accountability, and preventive systems across the organisation.

In FY2025–26, we invested ₹473 crore in CSR initiatives in India, impacting over 6.9 million lives. Over the past five years, our cumulative investment has exceeded ₹2,500 crore, reflecting our sustained commitment to creating impact at scale. Our flagship MANSI+ programme reached over 3.1 lakh women, children and adolescents, achieving a 94% resolution rate in high-risk health cases. Through education programmes, we successfully mainstreamed over 5,800 out-of-school children into formal education. We are also committed to preserving tribal identity, supporting 88 intellectual properties and engaging 167 tribes through the Samvaad initiative. Our livelihood programmes enabled over 38,000 households to adopt climate-resilient agriculture, while our participatory governance efforts helped communities unlock over ₹4,700+ crore in public funds. By aligning our social initiatives with prioritised UN SDG targets, we ensure that our growth is inclusive and delivers meaningful, scalable impact across all regions where we operate.