Tata Steel expects the macro-environment to remain unpredictable with trade barriers, energy transitions and shifting demand patterns continuing to challenge the industry.
N Chandrasekaran, Chairman, said though the macro-environment remains unpredictable, Tata Steel is positioned not just to endure, but to lead.
“We have the assets, the technology and most importantly, the people to transmute these challenges into enduring value,” he said in the company’s annual report.
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, he said.
“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.
The company will be expanding downstream capabilities in tubes, tinplate, and wires to capture higher value across the steel lifecycle.
The planned capacity expansion of Neelachal Ispat Nigam, which apart from the recently inaugurated Electric Arc Furnace in Ludhiana, will strengthen the company’s long products portfolio, he said
Technology and digital transformation are no longer ancillary initiatives at Tata Steel, they are core to operational DNA and our ability to drive efficiency.
“We are shaping Tata Steel into a digital-first industrial enterprise. This year, our digital platforms, Aashiyana and DigECA, achieved a combined Gross Merchandise Value of ₹9,360 crore, a 161 per cent increase y-o-y,” he said.
Tata Steel in its management discussion said the mining leases in Jharkhand and Odisha approach expiry by FY2030 under the amended Mines and Minerals (Development and Regulation) Act, 1957, which requires auction-based allocation.
To manage raw material supply risks through a diversified approach, the company has set a goal to source at least 50 per cent of iron ore from captive mines to ensure stable operations and reduce the impact of possible supply disruptions, it said.
For the last few years, Tata Steel has been focusing on the onshoring of overseas debt to mitigate rupee depreciation risks. As a result, overseas debt has come down from about 50 per cent of the total debt in FY21, to 18 per cent of the total debt in FY26.
Without this proactive onshoring, the gross debt would have been higher by ₹12,500 crore due to rupee depreciation alone. “Our goal is to repay the remaining bonds issued by our overseas subsidiaries by FY28,” it added.