Tata Steel Ltd has proposed to infuse funds up to $2.5 billion (around ₹21,410.95 crore) in its Singapore-based unit T Steel Holdings Pte Ltd (TSHP) to boost European business and repay debt.

Tata Steel routes its investment into its overseas businesses through TSHP.

The proposed fund infusion will be used by TSHP for repayment of debt, support business operations and restructuring costs in subsidiaries, in multiple tranches during the year, the steelmaker said in a regulatory filing. Tata Steel will continue to hold 100% equity shareholding in TSHP.

As per Foreign Exchange Management (Overseas Investment) Directions, 2022, the prior approval from the Reserve Bank of India (RBI) will be required for investments beyond $1 billion in the financial year 2025-26. Necessary approvals from the RBI will be obtained before executing the proposed transactions, the steelmaker said.

The fund infusion is proposed to be made during 2025-26, in multiple tranches.

Tata Steel’s consolidated revenues for the January-March quarter stood at ₹56,218 crore, up 5% quarter-on-quarter, aided by rise in deliveries across geographies. EBITDA was ₹6,762 crores with a margin of around 12% India revenues were ₹34,661 crore and EBITDA was ₹7,418 crore, which translates to an EBITDA margin of 21%. Crude steel production was 5.44 million tons and moved lower on QoQ basis due to reline of one of the blast furnaces in Jamshedpur. UK revenues were 551 million pounds and EBITDA loss stood at 80 million pounds. Revenues from the Netherlands were 1,624 million euros and EBITDA was 14 million euros.

“FY2025 has been an important transition year for Tata Steel with significant developments across operating geographies. We commissioned India’s largest blast furnace at Kalinganagar, safely decommissioned two blast furnaces in the UK and achieved production levels near rated capacity in the Netherlands. India deliveries were best ever at around 21 million tons and were up 5% YoY aided by a smooth ramp up of the new blast furnace at Kalinganagar and capacity utilisation close to 100% at the remaining operations,” said T V Narendran, chief executive officer and managing director, Tata Steel.

“At the segment level, Tata Steel continues to be the preferred supplier for automotive steel, with high share of business in new model launches. Tata Tiscon achieved ‘best ever’ volumes and grew by 19% YoY to around 2.4 million tons. We have invested more than ₹1,600 crore on R&D in the last 5 years, enabling us to become the first Indian steel supplier to have end-to-end capabilities in hydrogen transportation and to localise CP780 automotive grade demonstrating our customer centricity,” said Narendran.

Tata Steel said it has begun catering to commercial shipbuilding. “Deliveries in the UK were around 2.5 million tons as we smoothly transitioned to supplying our customers on the basis of imported substrate processed at our downstream mills while fixed costs have reduced by around £230 million, the benefit was not visible due to surging imports. In Netherlands, our deliveries were around 6.25 million tons and for the quarter were 1.75 million tons, highest in the last six years. The QoQ improvement in profitability at Netherlands includes efforts to reduce controllable costs while a transformation program to restore long term competitiveness has been launched in April 2025. This year also marked landmark achievement in the form of a century of mining at Noamundi and in FY2025, we mined around 40 million tons of iron ore across our mines in India,” said Narendran.