NEW DELHI: Tata Steel aims to cut costs by Rs 11,500 crore across its global operations over the next 12–18 months, focusing on controllable expenses, Executive Director and CFO Koushik Chatterjee said during a post-earnings analyst call.
Building on structural cost savings of Rs 6,600 crore achieved in FY25, the company is intensifying its cost transformation drive. The measures so far have included fixed cost rationalisation, manufacturing efficiency gains, raw material optimisation, procurement enhancements, and overhead reductions.
“Looking ahead to FY2026, our focus continues to be on controllable factors, and we are targeting further cost takeouts of almost Rs 11,500 crore—roughly about $1.3 billion—across geographies,” Chatterjee said, as quoted by news agency PTI.
The push for leaner operations comes as Tata Steel expands its Kalinganagar plant and advances its transition to greener steelmaking in the UK and the Netherlands, both of which involve workforce restructuring.
In the March quarter (Q4 FY25), Tata Steel reduced its consolidated expenses to Rs 54,167.61 crore, down from Rs 56,496.88 crore a year earlier. Consolidated net profit rose to Rs 1,200.88 crore in the same period.
India focus
In India, the company is targeting cost savings of Rs 4,000 crore in FY26 through operational improvements, workforce productivity, and supply chain optimisation. It also plans to reduce conversion costs by Rs 1,000–1,200 per tonne.
UK strategy
The UK operations aim to cut fixed costs by 29 per cent year-on-year- approximately 220 million pounds. Fixed costs have already declined from 995 million pounds in FY24 to 762 million pounds in FY25, with a target of 540 million pounds for FY26.
The UK government has pledged 500 million pounds to support Tata Steel’s shift to electric arc furnace technology. Tata Steel has finalised planning approvals, identified technology partners, and advanced design engineering, with 35 million pounds spent in FY25.
The Port Talbot facility in the UK, which has a capacity of 3 million tonnes per annum (MTPA), currently employs about 8,000 people across Tata Steel’s UK operations.
Netherlands outlook
In the Netherlands, Tata Steel is targeting cost savings of 500 million pounds through enhanced production efficiency, cost control, and product mix optimisation. The IJmuiden facility produced 6.75 MTPA of liquid steel in FY25.
