Tata Steel’s Indian operations reached a monumental peak on January 7, 2026, as the company reported its best-ever quarterly crude steel production of 6.34 million tons (MT) for Q3 FY26. This performance marks a robust 12% increase both year-on-year and sequentially, signaling a powerful recovery and expansion phase for the steel major. By adding nearly 0.7 MT of production compared to the previous quarter, Tata Steel has demonstrated its ability to ramp up capacity precisely when domestic infrastructure and automotive demand are hitting their stride.

The record-breaking output was primarily fueled by the company’s strategic expansion at its Kalinganagar and Jamshedpur facilities. The Kalinganagar plant, which recently completed a decade of operations, has been a central pillar of this growth following its expansion to an 8 MTPA capacity. The commissioning of India’s largest blast furnace at the site has allowed the company to significantly scale up the manufacturing of high-quality steel grades, effectively reducing the nation's reliance on specialized imports and supporting the "Atmanirbhar Bharat" initiative.

This production surge translated directly into a historic sales milestone, with Tata Steel India crossing the 6 million ton delivery mark for the first time in a single quarter. Total deliveries reached 6.04 MT, representing a 14% increase over the same period last year. This achievement is particularly significant as it indicates that the company is not just producing more steel, but is also successfully moving it through a robust supply chain to meet the diverse needs of the construction, infrastructure, and manufacturing sectors.

A standout performer during the quarter was the Automotive & Special Products vertical, which achieved its best-ever volumes of approximately 0.9 MT, a 20% year-on-year jump. This growth was bolstered by rapid OEM (Original Equipment Manufacturer) approvals for high-tensile steel grades coming out of the Kalinganagar downstream facilities. By securing these certifications, Tata Steel has solidified its position as a preferred partner for India’s booming automotive industry, providing the lightweight, high-strength materials essential for next-generation vehicle platforms.

The company's retail and consumer-facing segments also witnessed unprecedented growth. The Branded Products & Retail vertical surpassed the 2 million ton milestone for the first time in Q3, growing 12% year-on-year. Brands like Tata Tiscon and Tata Steelium continue to dominate the individual home-builder and small-scale infrastructure segments. Furthermore, the company’s digital pivot showed massive traction, with its e-commerce platforms, Tata Steel Aashiyana and DigECA, recording a Gross Merchandise Value (GMV) of ₹2,380 crore—a staggering 68% increase from the previous year.

While the Indian market remains the primary growth engine, the domestic record helps offset more challenging dynamics in Tata Steel’s European operations. In the Netherlands, production remained stable at 1.68 MT, though deliveries were impacted by seasonal factors. Meanwhile, Tata Steel UK is undergoing a major green transition, with enabling works for its new Electric Arc Furnace (EAF) progressing steadily. The record performance in India provides the financial and operational stability necessary for the group to navigate these complex international transformations.

As Tata Steel looks toward the final quarter of FY26, the 6.34 MT production milestone sets a new benchmark for the Indian steel industry. With cumulative 9-month production already up 6% YoY at 17.2 MT, the company is well on track to finish the fiscal year with unprecedented volume growth. Analysts suggest that this high capacity utilization, combined with a focus on value-added special products, will likely lead to a significant rise in core earnings, reinforcing Tata Steel’s status as the industrial backbone of India’s economic expansion.