Shares of Tata Steel Ltd fell 1.73% to ₹184.75 on the BSE after a court order on the SDF fund— the Calcutta High Court dismissed the company’s interim application seeking an injunction on the Joint Plant Committee’s use of the ₹2,970 crore deposit.
Tata Steel filed GA/2/2026 to block the JPC from accessing the ₹2,970 crore it had paid during FY2026 to meet its SDF loan obligations. The court, on September 17, 2026, ruled that the fund must remain untouched until the appeal is resolved.
This move preserves the liquidity that Tata Steel had earmarked for debt servicing, but also flags that the company cannot deploy the amount toward other initiatives until the appeal’s outcome. In a sector where SDF repayments drive balance‑sheet health, the ruling provides a pause on potential cash‑flow pressure.
Analyst Rajiv Bhatia of JM Financial said the ruling safeguards the balance sheet but highlights the uncertainty around the appeal. He noted that the ₹2,970 crore sits in a restricted pool that may only be released once the court delivers a final judgment.
Tata Steel plans to continue its debt‑repayment schedule and is expected to disclose the appeal outcome in the next court session. Investors should monitor the court’s subsequent orders, as the unlocking of the fund could influence the company’s cash flow and capital allocation.