Tata Steel NCLT Merger Approved, Tax Exposure Cut ₹427 Crore

Tata Steel’s NCLT approves merger with subsidiary, shares jumped 2.3% on NSE.

The Mumbai Bench order, issued Oct 1, 2026, clears the Scheme of Amalgamation under Sections 230‑232 of the Companies Act, following the July 31, 2024 announcement.

Consolidating Tata Steel’s operations may tighten the balance sheet by removing duplicate overheads; analysts project an ROE lift of about 1.5% over the next 12 months.

In a related move, the Income Tax Appellate Tribunal cut the company’s tax liability from ₹1,901 crore to ₹1,474 crore, a reduction of ₹427 crore, easing future tax outlays.

CEO N. S. R. Natarajan said the merger will streamline the supply chain and cut debt by roughly ₹2,000 crore over five years.

Investors now await the FY27 earnings call on Jan 15, when the board will outline integration costs and a projected EBITDA lift of 8%.