Tata Steel Posts Strong YoY Growth Despite Sequential Dip
Tata Steel's Q1 FY27 profit rose nearly 19% year-on-year, though it declined sequentially from a strong Q4.
Tata Steel reported a 14.3% YoY rise in revenue and an 18.8% jump in profit for Q1 FY27, though both metrics softened from the previous quarter.
Tata Steel began FY27 with solid year-on-year growth, though momentum softened from the preceding quarter. Revenue for the June 2026 quarter rose 14.3% compared to the same period last year, while profit grew at an even faster clip of 18.8%. However, on a sequential basis, both revenue and profit declined from the March 2026 quarter, down 3.9% and 19.6% respectively.
This resulted in a net profit margin of 3.9% for the quarter, a slight 10 basis point improvement year-on-year but a notable drop from the 4.7% margin achieved in Q4 FY26. The company's trailing-twelve-month (TTM) performance remains healthy, with a profit of ₹11,263.7 crore on revenue of ₹2,39,756.1 crore, translating to a stronger TTM net profit margin of 4.7%.
A look at the last five quarters shows the company's earnings trajectory:
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 60,794.29YoY +14% | 63,270.13 | 53,178.12 |
| Profit (₹ Cr) | 2,385.24YoY +19% | 2,965.00 | 2,007.36 |
| Net Profit Margin (%) | 3.9YoY +2.6% | 4.7 | 3.8 |
The table highlights that Q1 FY27 profit, while up year-on-year, is the lowest in the last four quarters. The stock has delivered strong returns, gaining 20.9% over the past year and 62.2% over three years, supported by a robust balance sheet with a debt-to-equity ratio of 0.84.
With the stock trading at a slight discount to its industry peers, the focus shifts to whether the company can reverse the recent sequential margin pressure in the coming quarters.
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· TATASTEEL
(BSE)
ISIN: INE081A01020
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