How Will Tata Steel Capex Impact Margins?
Tata Steel capex of Rs 15,000 crore for FY26, announced post-Q4 FY25 results on May 14, 2025, prioritizes domestic growth, with 80% allocated to India, including Kalinganagar’s expansion to 8 MTPA, set to start commercial production by September 2025.
Domestic operations yielded Rs 12,705/tonne EBITDA, outpacing the consolidated Rs 7,810/tonne.
The company targets Rs 11,500 crore in cost savings through operational efficiencies.
Netherlands operations saw 22% volume growth, while the UK faces losses amid decarbonization challenges.
With a focus on raw materials, downstream products, and value-added steel, Tata Steel’s capex aims for a 15% return, potentially rerating its valuation, currently at 10 times FY27 earnings, compared to JSW Steel’s premium.
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