Tata Steel Ltd

"The recently acquired entity Neelachal Ispat Nigam Limited delivered a strong performance with _1,000 crore in EBITDA and positive free cash flows.

N Chandrasekaran

Chairman

Dear StakeholdeRs,

It is my privilege to present the Integrated Annual Report of Tata Steel Limited for FY2024-25, marking the 118th year of your Company?s journey. This was the year we lost Mr Ratan Tata, whose vision made Tata Steel what it is today. We remain inspired by his contributions.

The year 2025 began with optimism, underpinned by expectations of macroeconomic stability and recovery with global growth, falling inflation, and tailwinds from falling interest rates. However, this macro narrative shifted with rising concerns as policy uncertainty rose with shifts in trade policy. Amid trade uncertainties, global growth is expected to slow to 2.3% in 2025 from 2.8% in 2024. In contrast, India demonstrated remarkable resilience, posting an estimated GDP growth of 6.5% in FY2024-25, sustaining its position as the fastest growing major economy. India?s long-term growth is underpinned by strong demographic and economic fundamentals and the ongoing structural reforms. Low inflation, rate cuts, higher capital expenditure and

In Europe, the operations entered a decisive phase of transformation, underpinned by strategic restructuring and decarbonisation agenda. In the UK, your Company is on track on its transition to low-emission steelmaking. The decommissioning of two blast furnaces at Port Talbot, has cleared the way for next-generation Electric Arc Furnace (EAF) project, supported by the UK Government. In the Netherlands, the performance was supported by near-rated capacity utilisation and cost management.

targeted tax incentives are expected to fuel discretionary consumption and boost private investment.

In FY2024-25, the global steel industry saw stable output at 1.83 billion tonnes. However, margins remained under pressure amid supply chain volatility, despite lower coking coal prices. India?s steel sector outperformed global peeRs, with FY2024-25 crude steel output rising by 4.7% and consumption surging by 10.2% y-o-y, driven by construction, urbanisation, and industrial activity. India is poised to lead global steel consumption in 2026. On a consolidated basis, in FY2024-25, Tata Steel?s crude steel production reached 30.92 million tonnes, while deliveries grew to 30.96 million tonnes (an increase of 3.3% and 5.3% y-o-y respectively), both marking new highs. Despite increase in volume, there was a 5% decline in revenue to _2,18,543 crore, due to lower global realisations. Your Company recorded a 10% y-o-y increase in EBITDA to _25,802 crore, with EBITDA per tonne improving to _8,335. Tata Steel delivered a turnaround in profitability, posting a Profit After Tax of _3,174 crore, compared to a loss of _4,910 crore in the previous fiscal year. Operating cash flows rose by 16% to ~_23,500 crore, even as your Company invested _15,671 crore in capital expenditure.

The Board of Directors has recommended a dividend of _3.60 per equity share of face value _1 each.

In FY2024-25, Tata Steel India achieved its highest-ever crude steel production at 21.7 million tonnes and deliveries at 20.9 million tonnes, driven by near full capacity utilisation across sites and the successful commissioning of India?s largest blast furnace, the 5 MTPA unit at Kalinganagar, part of your Company?s ambitious _27,000 crore Phase II expansion. The recently acquired entity Neelachal Ispat Nigam Limited delivered a strong performance with _1,000 crore in EBITDA and positive free cash flows. In Europe, the operations entered a decisive phase of transformation, underpinned by strategic restructuring and decarbonisation agenda. In the UK, your Company is on track on its transition to low-emission steelmaking. The decommissioning of two blast furnaces at Port Talbot, has cleared the way for the next-generation Electric Arc Furnace (EAF) project, supported by the UK Government. In the Netherlands, the performance was supported by near-rated capacity utilisation and cost management. We also strengthened our environmental compliance efforts, progressing key approvals for the long-term decarbonisation roadmap. In alignment with the Tata Group?s 'Aalingana' initiative, your Company is committed to achieve Net Zero emissions by 2045. In India, your Company has scaled the biochar use in blast furnaces, deployed LNG-powered traileRs to decarbonise logistics, initiated carbon-capture pilots and expanded renewable energy integration and water circularity across operations. In the UK, EAF-based steelmaking at Port Talbot is expected to reduce over 50 million tonnes of CO_ in the next decade. In the Netherlands, a decarbonisation roadmap is being finalised with the Dutch Government which envisages a 35–40% reduction in emissions. On the social front, Tata Steel impacted the lives of over 5.77 million individuals through its CSR initiatives, reafirming our deep-rooted commitment to inclusive and sustainable development. The Company?s focus on digitalisation and innovation has seen over 558 AI models deployed across the value chain. Your Company is transforming operations by enhancing predictive maintenance, product customisation, and safety intelligence. The Board also witnessed certain transitions this year. Ms Farida Khambata completed her term as Member of the Board and Mr Pramod Agrawal joined the Board as an Independent Director. I express my gratitude for the contributions of Ms Khambata and extend a warm welcome to Mr Pramod Agrawal.

In closing, I would like to thank you for your continued trust and partneRship.

Together, we will build a stronger, greener, bolder Tata Steel, which would shape a future that is purposeful, sustainable, and economically resilient.

Warm Regards,

N Chandrasekaran