Tata Steel delivered a mixed set of Q4FY25 operational updates, showcasing strong performance in deliveries, particularly in India, but also facing challenges in production volumes and market reaction. Despite an otherwise positive operational outlook, Tata Steel shares fell sharply on the stock exchange, reflecting global sentiment and sector-wide pressures.

Production Dips Due to Maintenance Activity in Jamshedpur

In Q4FY25, Tata Steel India’s crude steel production stood at 5.51 million tonnes, a 3.2% decline on a quarter-on-quarter (QoQ) basis, mainly due to relining work at the "G" blast furnace in Jamshedpur. However, on a year-on-year (YoY) basis, production increased by 2%, reflecting resilience despite scheduled maintenance.

For the full financial year FY25, India operations produced 21.8 million tonnes, up 5% compared to FY24. This improvement was driven by the commissioning of India’s largest blast furnace at Kalinganagar, along with enhanced output from Neelachal Ispat Nigam.

India Deliveries Hit All-Time High in Q4FY25

Despite the production dip, Tata Steel achieved its best-ever delivery volumes in India during Q4FY25. Deliveries rose 6% QoQ to 5.6 million tonnes, thanks to 9% sequential growth in domestic demand.

On an annual basis, FY25 deliveries reached 20.94 million tonnes, a 5% increase from FY24, showcasing strong demand across sectors and regions. The robust performance indicates the company's operational efficiency and effective demand management.

Strong Performance in Automotive, Retail, and Industrial Segments

Breaking down the performance by segment:

• Automotive & Special Products: Delivered a 10% QoQ growth in Q4, supported by robust demand in auto manufacturing.

• Branded Products & Retail: Deliveries rose 7% YoY in FY25 to 7 million tonnes, led by brands like Tata Tiscon, Tata Astrum, and Tata Steelium.

• Industrial Products & Projects: Delivered 14% QoQ growth in Q4FY25, signaling revival in infrastructure and industrial demand.

The company also highlighted a strong e-commerce performance, with its platform Tata Steel Aashiyana generating ₹3,550 crore in revenue, marking a 60% YoY surge.

Mixed Performance in European Operations

In Europe, the performance varied by region:

• Tata Steel Netherlands saw improved production (6.7 mt) and deliveries (6.2 mt) in FY25, as operations normalized post the relining of blast furnace #6.

• However, UK operations remained weak, impacted by the closure of blast furnaces since Q2FY25. As a result, FY25 UK deliveries fell to 2.5 mt, dragging down overall Europe performance.

This disparity in regional performance highlights the challenges faced by Tata Steel's international businesses, especially amid structural changes in the UK steel industry.

Stock Market Reaction and Global Metal Sector Pressure

Despite the strong operational updates from India, Tata Steel shares saw a sharp decline on 7 April 2025. As of 2:34 PM, the stock was down nearly 8% at ₹129.25 on the BSE, having earlier hit a lower circuit of ₹126.45.

The broader Nifty Metal index also plunged over 8%, with all 15 constituents in the red, reflecting negative sentiment across the global metals sector.

Concerns Over US Tariff and Second-Order Effects

Analysts attributed the sector-wide drop to concerns about the recently announced 25% US tariff on steel and aluminium imports. While Indian steel exports are not directly affected, the second-order effects on global trade dynamics and potential retaliatory measures could negatively impact the global metals space.

This uncertainty has weighed heavily on investor sentiment, despite strong domestic growth metrics shown by Tata Steel.

Conclusion: Domestic Strength Overshadowed by Global Concerns

Tata Steel’s Q4FY25 performance showcases robust domestic demand, successful expansion efforts, and segment-wise growth. The company's ability to deliver record volumes despite maintenance activity is commendable.

However, external factors like global trade tensions and weak European operations have cast a shadow on these achievements, as reflected in the sharp decline in its stock price.

Investors and analysts will be closely watching Tata Steel’s upcoming financials, management commentary, and developments in global trade policies, especially around tariffs and supply chain adjustments.

The Upcoming IPOs in this week and coming weeks are Aten Papers & Foam.

The Closed IPOs are  Infonative Solutions Limited, Spinaroo Commercial Limited,Retaggio Industries Limited.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in .Choice Broking FinX