Tata Steel shares fell about 2% on Thursday, October 8, after the market opened, as investors scrutinised the company’s second‑quarter FY27 business and production update. The decline followed a 1.71% drop to ₹175.64 on Wednesday’s close, down from ₹178.69 the previous session. The stock settled at ₹172.26 on Thursday, a decline of roughly 2% from the prior close of ₹175.64. The move came as the firm released its Q2 update after market hours on October 7, prompting a detailed analysis of domestic and global volumes.

In the September quarter of FY27, Tata Steel’s India production rose 10.1% year‑on‑year to 6.21 million tonnes, up from 5.64 million tonnes a year earlier. Delivery volumes in India increased 7.5% YoY to 5.97 million tonnes, compared with 5.55 million tonnes in the same period last year. The company attributed the growth to higher output at its Jamshedpur and Kalinganagar facilities and a stable demand across market segments, supported by an enriched product mix.

Despite the domestic uptick, global production and delivery volumes remained subdued. The Netherlands plant, which had been shut down temporarily after emission measurements showed Chromium‑6 levels exceeding permissible limits, resumed operations in August 2026. On a half‑year basis, the Direct Sheet Plant produced 3.07 million tonnes and delivered 2.70 million tonnes. In Thailand, production fell to 0.32 million tonnes and deliveries to 0.31 million tonnes, down from 0.36 million tonnes each a year earlier, largely due to heavy rains in September 2026.

Netherlands production in Q2 FY27 was 1.52 million tonnes, down from 1.67 million tonnes a year earlier, while deliveries fell to 1.30 million tonnes from 1.54 million tonnes. UK deliveries were 0.38 million tonnes, lower than the 0.57 million tonnes recorded in Q2 FY26, impacted by inventory buildup ahead of new safeguard measures implemented on July 1, 2026. The company also ramped up production at its Llanwern pickle line, as noted in its official statement.

Over the past year, Tata Steel shares have risen 2%, but have declined 3.4% year‑to‑date in 2026 and over 4% in the last month. The stock has fallen 1.3% in the last five market sessions. The company’s market capitalisation exceeded ₹2.19 lakh crore as of the close on Wednesday, October 7, 2026. The 52‑week high of ₹224.40 was reached on May 15, 2026, while the 52‑week low of ₹160.06 occurred on December 9, 2025.

The Q2 FY27 update highlighted an 8% sequential rise in crude steel production in India and a 10% year‑on‑year growth, yet global volumes lagged due to plant shutdowns and weather impacts. Investors reacted to the fine print of the update, leading to the 2% decline in shares. The company’s domestic performance, driven by higher output at key facilities, contrasts with muted global volumes, underscoring ongoing pressure on worldwide steel demand.