The company announced in a statement that the funds are planned to be disbursed by TSHP in multiple tranches throughout the year and will be used for debt repayments, operational support and restructuring expenses at subsidiaries. Tata Steel will continue to hold a 100% share in TSHP.
According to the Reserve Bank of India's Foreign Exchange Management (Overseas Investment) Guidelines 2022, pre-approval is required for overseas investments above USD 1 billion. Tata Steel stated that the necessary regulatory approvals will be obtained for the implementation of the proposed transactions.
The announcement of the planned fund infusion during the 2025-26 fiscal year follows Tata Steel's recent financial performance. The company posted a consolidated revenue of INR 56,218 crore in the January-March period of FY2025. Revenue grew by 5% q/q, while EBITDA was INR 6,762 crore with a margin of around 12%.
Revenue from India operations was INR 34,661 crore and EBITDA was INR 7,418 crore, with an EBITDA margin of 21% in this segment. Crude steel production was 5.44 million tons, but production was constrained by the outage of one of the blast furnaces at Jamshedpur for maintenance. Revenue from the UK was GBP 551 million, with an EBITDA loss of GBP 80 million. Revenue from the Netherlands was EUR 1,624 million and EBITDA was EUR 14 million.
TV Narendran, CEO and Managing Director of the company, stated, "Fiscal 2025 has been an important year of transition for Tata Steel in all regions where we operate. We commissioned the largest blast furnace in India at Kalinganagar, safely closed two blast furnaces in the UK and achieved near-capacity production levels in the Netherlands. Our deliveries in India reached the highest ever level of around 21 million tons."
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