Archive · 1 Aug 2025
Tata Steel Eyes ₹1,000 Crore EBITDA at Neelachal in FY26
Tata Steel's steelmaking unit, Neelachal, is doing well and expects to make over ₹1,000 crore in profit this year.
They made a good profit last year, and are planning to expand the factory to make more steel.
They are working on getting the necessary approvals with a plan to be ready around October or November.
This expansion is expected to increase production and speed up the process.
Tata Steel's Neelachal unit expects over ₹1,000 crore EBITDA in FY26.
EBITDA margins rose to 24% in Q1FY26.
Expansion plans are in advanced stages, with a final investment decision expected around October.
The unit recorded ₹1,000 crore in EBITDA in FY25.
Expansion aims to increase capacity from 1 mtpa to 4.5-5.5 mtpa.
- Who
- Tata Steel, Neelachal Ispat Nigam Ltd (NINL).
- What
- Tata Steel's Neelachal unit expects over ₹1,000 crore EBITDA in FY26 and is undergoing expansion.
- When
- FY26, with expansion decisions expected around October.
- Where
- Neelachal, India.
- Why
- Part of Tata Steel's expansion with a focus on ramping up its long products play.
Expansion Timeline
Cost Management
Project Execution
Expansion Timeline
Earlier, steelmaker would go to Board and then seek regulatory approvals, adding 1-1.5 years to the process.
Cost Management
With a change in policy, getting regulatory clearances before Board approvals, project execution timelines are expected to speed up, and there will be efficient cost management.
- Q1FY26 EBITDA
- ₹220 crore
- FY25 EBITDA
- ₹1,000 crore
- Q1FY26 EBITDA margin
- 24%
- Existing Capacity
- 1 million tonne per annum (mtpa)
- Proposed Capacity
- 4.5-5.5 mtpa
