Tata Steel Limited Sponsored GDR

Strong consolidated profitability + cost transformation overcomes weaker realizations (Good) - 9M FY26 (ended Dec 31, 2025): Consolidated EBITDA INR 24,894 cr (+31% YoY); EBITDA margin expanded ~300 bps to 15% (from 12%). - Q3 FY26: Consolidated revenues ~INR 57,000 cr; EBITDA ~INR 8,309 cr; margin ~15%. - Management emphasized that lower steel realizations (India & Netherlands) were more than offset by cost transformation and improved volumes.

Cost transformation is the key driver; significant run-rate savings (Good / “Surprising” execution) - Cost transformation savings: INR 8,600 cr over 9M across geographies. - Quarterly run-rate: >INR 3,000 cr improvement in the quarter. - 93% compliance to the internal cost plan; deviation linked mainly to extended consultation processes in the Netherlands. - Exceptional item: employee restructuring social plan led to restructuring provision INR 737 cr (consolidated exceptional items).

India performance: volumes ramp + margins held up (Good) - Crude steel production: ~+12% QoQ; ~6.34 million tonnes YoY (as cited). - Deliveries: crossed 6 million tonnes in Q3 for the first time; sales ramped with production and outpaced domestic demand. - Q3 India EBITDA margin ~23% (management stated). - Downstream/mix improvements: - Auto & Special Products volumes: best ever quarterly and 9-month volumes; driven by rapid OEM approvals for advanced grades from Kalinganagar. - Auto downstream mix >50% at 9-month sales level. - Branded/retail momentum: Tata Tiscon best ever third quarter volumes; Tata Steelium +20% QoQ helped by cold rolling ramp-up. - Retail omnichannel: GMV ~INR 2,380 cr (+68% YoY).