Tata Steel Shares Drop 10% as Taxable Income Rises Amid Bhushan Steel Acquisition

On April 7, 2025, Tata Steel share price tanked over 10%, reaching a day low of ₹124.20 at 10:15 AM after opening at ₹126.45 on BSE. The fall in the Tata Steel share price came after a significant development related to Bhushan Steel Limited (renamed as Tata Steel BSL). 

Increase of Taxable Income

The company’s proposal to acquire Bhushan Steel Limited (now renamed Tata Steel BSL) under the resolution process of the Insolvency and Bankruptcy Code, the company’s taxable income for FY2018 -19 (AY 2019-20) has been increased by ₹25,185.51 crore. This amount corresponds to the debt that was waived in favor of Tata Steel when it made the bid and successfully acquired Bhushan Steel.

Tata Steel Financial Performance

For the first nine months of the financial year, Tata Steel reported consolidated revenues of ₹1,62,324 crores. EBITDA saw a 14% year-on-year growth, reaching ₹19,040 crores, with an EBITDA margin of 12%. In the Oct–Dec quarter, consolidated revenues were ₹53,648 crores, with EBITDA at ₹5,994 crores and an EBITDA margin of approximately 11%. During the quarter, the company invested ₹3,868 crores in capital expenditure, bringing the total capital expenditure to ₹12,450 crores between April and December 2024. The company’s net debt stands at ₹85,800 crores, while its liquidity position remains strong at ₹28,219 crores, which includes cash and cash equivalents of ₹13,119 crores.

India business reported revenues of ₹32,930 crores for the Q3FY25, with EBITDA of ₹7,921 crores, resulting in an EBITDA margin of 24%. Crude steel production was approximately 5.69 million tons, marking a 6% increase year-on-year. Deliveries totaled 5.29 million tons, an 8% YoY growth, driven by consistent domestic deliveries and a strong export presence. Additionally, the company’s newly commissioned 5 MTPA blast furnace at Kalinganagar is currently operating at around 8,500 tpd, with the ramp-up to its full capacity underway. Furthermore, a 0.9 MTPA Continuous Annealing Line (CAL) was successfully commissioned in December.

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