Tata Steel reported lower-than-expected profits in the fourth quarter of the 2025/2026 fiscal year (January–March 2026) due to rising raw material prices and one-time costs related to the restructuring of its Dutch division, Reuters reports.

Consolidated net profit for the period, according to the company’s report, more than doubled to 29.26 billion rupees ($304.9 million), but fell short of analysts’ average forecast of 30.8 billion rupees, according to data compiled by LSEG.

The cost of materials for the steelmaker rose by 16.7% during the reporting period, while total expenses increased by 8% to 585.02 billion rupees.

In particular, coking coal prices rose for two consecutive quarters amid an ongoing gas shortage in the country linked to the conflict in the Middle East.

At the same time, Indian steel producers saw a recovery in domestic steel prices in January–March, driven by protective tariffs and improved demand following two consecutive quarters of steady price declines, analysts reported.

Tata Steel’s domestic steel production in the fourth quarter of the 2025/2026 fiscal year rose by more than 14% year-over-year to 6.22 million tons, while shipments to the Indian market increased by 10.5% year-over-year to 6.19 million tons.

As noted by BigMint, the company continues to expand and grow in the scrap processing segment. During the period, Tata Steel commissioned a 0.75-million-ton electric arc furnace using this raw material in Ludhiana. The rollout of a 2.2-million-ton CRM complex in Kalinganagar is also continuing, and plans for the proposed 4.8-million-ton expansion of NINL have been confirmed.

As a reminder, Tata Steel IJmuiden and Ecocem have signed a cooperation agreement to develop new ways to use steelmaking slag in cement and concrete production. The initiative aims to reduce CO2 emissions and support the transition to a circular economy in the construction industry.