Tata Steel’s Neelachal Ispat Nigam Ltd (NINL) has posted a strong operating performance for Q1 FY26, reporting an EBITDA of ₹220 crore. Riding on this momentum, the company is targeting earnings before interest, taxes, depreciation, and amortisation (EBITDA) exceeding ₹1,000 crore for the full financial year. The EBITDA margin improved to 24% in the April-June quarter, up from 23% in Q4 FY25. Tata Steel officials indicated that the proposed expansion blueprint for NINL is nearing the final stages of planning.
In FY25, NINL achieved an EBITDA of ₹1,000 crore, with a 19% margin. Managing Director and CEO of Tata Steel, TV Narendran, expressed confidence that the plant would match or exceed that performance in FY26. Once a loss-making central public sector enterprise, NINL was acquired by Tata Steel in 2022 as part of its strategy to expand domestic long steel product capacity. At the time of acquisition, the plant had limited operations and suffered from inefficiencies and an unviable cost structure.
The current production capacity of the unit stands at 1 million tonnes per annum (mtpa). As per Tata Steel’s phased development strategy, the first leg of expansion aims to increase capacity to 4.5–5.5 mtpa. One key infrastructure gap remains: the absence of a rolling mill. “At present, we convert billets into finished products elsewhere. Building a rolling mill at Neelachal will unlock more value,” said Mr Narendran. He also noted that production could have been higher if additional environmental clearances were already in place.
Tata Steel recently concluded the full acquisition of NINL, wrapping up the process that began in July 2022 with a 93.71% stake purchase. The company is now awaiting final regulatory approvals, including environmental clearances, before presenting the expansion proposal to its Board of Directors, expected around October or November.
Mr Narendran highlighted that Tata Steel has revised its project execution approach—securing regulatory approvals before Board presentation. This change is expected to reduce project timelines significantly. “For an integrated facility like NINL, the traditional project cycle is around five years, with 1–1.5 years spent on clearances. We aim to save that time,” he said. The expansion, taking the plant from 1 mtpa to 4.5 mtpa, will be implemented in an active facility, similar to Tata Steel’s Jamshedpur operations. Given the complexities involved, the completion timeline is projected at 3 to 3.5 years.
Tata Steel is one of the world’s leading steel producers, with a total crude steel production capacity of 35 million tonnes per annum. The company operates across five continents, with a diverse global presence in both production and commercial activities. For FY2025, Tata Steel reported consolidated revenues of approximately $26 billion, underscoring its position as a top-tier player in the global steel industry.
The company has long been recognized for its commitment to sustainability, with ambitious goals to achieve Net Zero emissions by 2045. It is also undergoing a digital transformation, with plants in Jamshedpur, Kalinganagar, and IJmuiden receiving recognition from the World Economic Forum as Global Lighthouse facilities. These plants exemplify Tata Steel’s leadership in advanced digital manufacturing practices and its ongoing efforts to drive innovation and efficiency across its operations.
Tata Steel’s commitment to responsible steel production is reflected in its achievements, including the first ResponsibleSteel™ certification for its Jamshedpur plant, with over 90% of its steel production in India now coming from certified sites. The company has also received numerous accolades, such as the Prime Minister’s Trophy for the best-performing integrated steel plant in 2016-17 and the 2024 Steel Sustainability Champion award from worldsteel, underscoring its leadership in both sustainability and performance within the global steel sector.
