Tata Steel Profit Slips from Q4 Peak Despite Strong Annual Growth
Profit fell 19.6% sequentially from a strong Q4, though annual growth remains robust and the stock has gained 18% in a year.
Tata Steel's Q1 FY27 profit declined nearly 20% from the previous quarter, though it remains up 18.8% year-on-year. Revenue also dipped sequentially.
Tata Steel's first-quarter earnings show a sequential slowdown from a strong finish to the last fiscal year, though the company's performance remains well ahead of where it was a year ago. Profit fell 19.6% from the previous quarter, even as revenue and profit posted solid double-digit growth compared to the same period last year.
The latest quarter saw revenue of ₹60,794 crore and profit of ₹2,385 crore. While this represents a healthy 18.8% annual profit growth, it marks a step down from the ₹2,965 crore earned in Q4 FY26. The net profit margin also contracted to 3.9% from 4.7% last quarter, though it improved slightly from 3.8% a year ago.
A look at the last five quarters shows the recent peak and subsequent moderation.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 60,794YoY +14% | 63,270 | 53,178 |
| Profit (₹ Cr) | 2,385YoY +19% | 2,965 | 2,007 |
| Net Profit Margin | 3.9%YoY +2.6% | 4.7% | 3.8% |
Key Points
- The trailing-twelve-month (TTM) net profit margin stands at 4.7%, indicating the Q1 figure is below the recent average.
- The stock has delivered an 18.2% return over the past year, closing at ₹183.5 on the results date.
- Tata Steel trades at a P/E of 22.2, a slight discount to its industry's 24.2 average.
Overall, the quarter reflects a cyclical pullback in profitability from recent highs, but the underlying annual growth story for the steelmaker remains intact. The key question is whether margin pressure persists or if the company can regain its previous quarterly momentum.
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· TATASTEEL
(BSE)
ISIN: INE081A01020
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