Tata Steel Reaffirms 40 MTPA Capacity Vision, Plans ₹20,000 Crore Capex for FY27 Expansion

Tata Steel has reinforced its long-term growth strategy by reaffirming its commitment to achieve 40 million tonnes per annum (MTPA) steelmaking capacity in India. Speaking at the company’s 119th Annual General Meeting, Chairman N. Chandrasekaran said the company has already begun planning for the next phase of expansion following the successful commissioning of Phase II at its Kalinganagar steel plant in Odisha.

The completion of the Kalinganagar expansion has increased Tata Steel’s total production capacity to 26.1 MTPA, marking a significant milestone in the company’s growth journey. The project has expanded the Kalinganagar facility from 3 MTPA to 8 MTPA and includes India’s largest blast furnace along with a state-of-the-art cold rolling mill.

According to the company, the expanded facility will strengthen its portfolio of high-value flat steel products while enhancing its presence in key sectors such as automotive, defence and engineering. Tata Steel also plans to continue expanding its downstream businesses, including tubes, tinplate and wire products, to improve value addition across its operations.

To support its expansion roadmap, Tata Steel has earmarked around ₹20,000 crore as capital expenditure for FY27. The company expects to maintain an annual capital investment of ₹15,000 crore to ₹20,000 crore over the coming years. Planned expansions at Neelachal Ispat Nigam Limited (NINL) and the Meramandali facility are also expected to contribute to future capacity growth.

During FY26, Tata Steel reported strong financial performance with consolidated revenue of ₹2,32,140 crore. The company achieved record crude steel production of around 23.4 million tonnes, while consolidated EBITDA increased 35% to ₹34,848 crore. Profit after tax surged 243% to ₹10,886 crore, reflecting improved operational efficiency and market demand. The Board has also recommended a dividend of ₹4 per equity share.

Beyond capacity expansion, Tata Steel continues to invest heavily in digital transformation. More than 860 artificial intelligence models are currently deployed across its operations to improve safety, productivity, quality and energy efficiency. Its digital platforms, Aashiyana and DigECA, recorded a combined gross merchandise value of ₹9,360 crore during FY26, registering strong year-on-year growth.

Internationally, the company continues its low-carbon transition with major investments in the United Kingdom, while also engaging with the Dutch government to address regulatory challenges facing its Netherlands operations. These initiatives support Tata Steel’s broader objective of becoming a larger, greener, smarter and more resilient steel producer.

With sustained investments in manufacturing capacity, technology adoption, sustainability and value-added products, Tata Steel is positioning itself to meet India’s growing infrastructure and industrial demand while strengthening its leadership in the global steel industry.