Tata Steel Chairman Speech

It is my privilege to present the Integrated Annual Report
of Tata Steel Limited for FY2025-26, marking the 119^th year
of your Company''s journey, a year defined by structural
transformation and continued commitment to long-term
value creation.

The year 2026 began with expectations of steady global
growth, soft inflation and easier financial conditions. The year
witnessed positive developments including the signing of the
landmark India-EU trade agreement and the interim India-
US trade deal. However, by early March, the start of the West
Asia crisis brought rising concerns about stagflation—falling
output coupled with rising inflation.

In FY2025-26 the Indian economy remained a growth leader,
with 7.6% growth driven by robust domestic demand and
broad-based manufacturing strength. India''s macroeconomic
fundamentals remain resilient even though we face near term
challenges due to the West Asia crisis. The medium and long
term outlook presents a strong and compelling economic
thesis of growth and resilience.

During the year, global steel industry remained subdued
as production fell 2% to 1.85 billion tonnes in CY2025,
driven by China''s slowdown and weak Western demand.
Volatile costs and regulatory pressures squeezed margins.
While the Indian steel prices faced pressure for most of the
financial year reflecting the weak pricing in the sea borne
market, the Indian Steel industry displayed resilience and
continued to grow in production at 10.7% to 168.4 million
tonnes. The demand growth of steel was also strong at 7.6%
to 163.7 million tonnes fuelled by sustained demand across
infrastructure, construction, automotive, and industrial
sectors, highlighting India''s resilience.

For the FY2025-26, your Company delivered a consistent and
robust financial performance with all-round improvement
across all areas. The performance this year is a testament
to the structural strength of our domestic operations and
actions taken in our European portfolio.

Our consolidated revenue stood at ?2,32,140 crore, registering
a growth of 6% over the previous year which had revenues of
?2,18,543 crore. This growth was underpinned by our highest-
ever annual crude steel production of ~23.4 million tonnes
and deliveries of ~22.5 million tonnes in India.

The consolidated EBITDA was ?34,848 crore, a 35% increase
y-o-y. The operational performance translated into a
consolidated Profit After Tax (PAT) of ?10,886 crore for the
full year, representing a 243% increase compared to the
?3,174 crore recorded in FY2024-25. In Europe, our strategy of
structural intervention is yielding results. In the Netherlands,
EBITDA tripled to €267 million, while in the UK, we have
halved our EBITDA losses.

Our India revenues were ?1,40,302 crore and EBITDA was
?34,272 crore (a 17% increase y-o-y). We achieved a 24%
EBITDA margin in the India business on the foundation of a
transformative cost take out programme, improved product
mix and increased volumes.

Your Company has also maintained a disciplined balance
sheet, reducing the consolidated net debt to ?80,144 crore,
bringing Net Debt to EBITDA ratio to a healthy 2.3x.

In recognition of our robust performance and your continued
trust, the Board has recommended a dividend of ?4 per
equity share.

The inauguration of the Phase II expansion at Kalinganagar
is a landmark event with a ?27,000 crore investment that has
increased our domestic capacity to 26.1 MTPA, scaling the site
capacity from 3 to 8 MTPA. With India''s largest blast furnace
and a state-of-the-art Cold Rolling Mill, the Phase II expansion
has pivoted our flat products strategy towards high-value
sectors like automotive and defence, marking a decisive step
toward our 40 MTPA long term ambition.

Our focus on value-added segments and digital engagement
is yielding record results with key segments achieving peak
volumes during the year, bolstered by high-end products
and expansion into defence and shipbuilding. We are also
expanding our downstream capabilities in Tubes, Tinplate,
and Wires, ensuring we capture higher value across the steel
lifecycle.

During the year, your Company undertook a few strategic
investments including consolidation of its ownership in Tata
Steel Colors from its joint venture partner and acquisition
of majority shares in Thriveni Pellets. These are critical
interventions for the long term future of your Company.

Our leadership in India will be further strengthened in the
future by the planned capacity expansion of Neelachal
Ispat Nigam Limited (NINL), which apart from the recently
inaugurated Electric Arc Furnace in Ludhiana will strengthen
the Company''s long products portfolio. The Board has also,
during the year, approved the amalgamation of NINL into
Tata Steel.

In Europe, your Company has been working on several
levers to improve operating performance including cost take
out programmes, focused management of cash flows and
improvement of the environment management footprint in
the operating sites.

During the year, TSUK officially broke ground on the
£1.25 billion EAF Project at Port Talbot, marking the
commencement of the UK''s largest low-carbon steelmaking
transition, in partnership with the UK Government. The
project is progressing in terms of Engineering Design and
Construction.

In the Netherlands, certain environmental regulations
now exceed European Union Standards while emission
metrics have tightened to levels where no feasible solutions
are available for some of Tata Steel Nederland''s (TSN)
legacy assets within a regulatorily accepted time frame.

Your Company is engaged with the Government of the
Netherlands and all stakeholders to develop a future pathway
for TSN that is environmentally compliant, financially
affordable and viable in the future. Your Company also
completed the acquisition of Vattenfall co-generation power
plants in the Netherlands.