Tata Steel is actively planning the next phase of capacity expansion even as it closes in on its long-term goal of 40 million tonnes per annum (MTPA) of steelmaking capacity, Chairman N. Chandrasekaran told shareholders on Thursday, 2 July. Speaking at the company's 119th Annual General Meeting (AGM) in New Delhi, Chandrasekaran confirmed that the commissioning of Phase II of the Kalinganagar plant has lifted Tata Steel's total installed capacity to 26.1 MTPA.

Expansion Roadmap

Chandrasekaran described the Kalinganagar Phase II ramp-up as 'a decisive step towards our long-term vision of achieving 40 MTPA capacity.' Beyond that milestone, the company has already begun evaluating new locations and initiating land acquisition processes. The move signals that Tata Steel is not waiting to hit 40 MTPA before planning what comes next — an unusually forward-leaning posture for a capital-intensive sector.

European Operations Under Pressure

On the overseas front, Chandrasekaran said restructuring efforts in Europe were delivering results, but flagged a more difficult operating environment in the Netherlands. Environmental regulations there have reportedly moved beyond European Union standards, adding compliance costs and uncertainty. 'We are actively engaging with the Dutch government and relevant stakeholders to develop a forward pathway that is environmentally compliant, financially affordable and viable over the long term,' he said. The Netherlands situation remains a watchpoint for investors, given its potential drag on group margins.

Digital Transformation and AI Deployment

Tata Steel has deployed more than 860 artificial intelligence (AI) models across its operations to drive productivity and efficiency gains. Its digital platforms — Aashiyana and DigECA — recorded a combined gross merchandise value (GMV) of ₹9,360 crore in FY26, a 161% year-on-year increase. The scale of AI integration positions Tata Steel among the more digitally advanced steelmakers globally, though the direct impact on cost-per-tonne metrics was not detailed at the AGM.

Stock Performance

Shares of Tata Steel were trading higher at around ₹186 on the BSE at 12:20 pm IST on Thursday. The stock has touched a 52-week low of ₹152.55 and a 52-week high of ₹224.40 on the exchange, reflecting the broader volatility in global steel demand over the past year.

Outlook

Chandrasekaran said the company remains focused on becoming 'a larger, greener, smarter and resilient company' through sustained investments in technology, operational excellence, and capacity expansion. With India's infrastructure and construction pipeline remaining robust, Tata Steel's domestic capacity push is well-timed — though execution timelines and land acquisition outcomes will be the key variables to watch in the quarters ahead.