Tata Steel Limited (IN:TATASTEEL)
:TATASTEEL
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Tata Steel Limited
(TATASTEEL)
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Rating:69Neutral
Price Target:
₹216.00
▲(4.55% Upside)
Action:DowngradedDate:02/06/26
The score is driven primarily by middling financial performance (stable balance sheet and cash generation but volatile revenue/profitability) and supportive technical momentum. Earnings-call commentary adds confidence via improving margins, cash flow and lower leverage, while a high P/E and modest dividend yield constrain the overall rating.
Positive Factors
Cost Transformation Success
Tata Steel's successful cost transformation program enhances operational efficiency and profitability, providing a competitive edge in cost management.
Negative Factors
Challenges in UK Market
Persistent challenges in the UK market, including widening losses, could strain Tata Steel's profitability and require strategic adjustments.
Read all positive and negative factors
Positive Factors
Negative Factors
Cost Transformation Success
Tata Steel's successful cost transformation program enhances operational efficiency and profitability, providing a competitive edge in cost management.
Read all positive factors
Tata Steel Limited (TATASTEEL) vs. iShares MSCI India ETF (INDA)
Market Cap
₹2.58T
Dividend Yield2.11%
Average Volume (3M)1.52M
Price to Earnings (P/E)20.9
Beta (1Y)1.21
Revenue Growth-0.42%
EPS Growth132.70%
CountryIN
Employees121,869
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)2.16
Shares Outstanding12,483,531,000
10 Day Avg. Volume1,992,314
30 Day Avg. Volume1,523,274
Financial Highlights & Ratios
PEG Ratio-0.32
Price to Book (P/B)2.10
Price to Sales (P/S)0.87
P/FCF Ratio24.38
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹233.00Price Target Upside12.78% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)14.16
Revenue Forecast (FY)₹2.53T
Tata Steel Limited Business Overview & Revenue Model
Company Description
Tata Steel Limited manufactures and distributes steel products in India and internationally. It operates in Tata Steel India, Tata Steel Long Products, Other Indian Operations, Tata Steel Europe, Other Trade Related Operations, South-East Asian op...
How the Company Makes Money
Tata Steel generates revenue primarily through the production and sale of steel products. The company operates on a vertically integrated model, which means it is involved in every stage of the steel production process, from raw material extractio...
Tata Steel Limited Earnings Call Summary
Earnings Call Date:Feb 06, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call communicated robust operational and financial recovery led by India: record quarterly deliveries, strong 9M EBITDA growth (+31% YoY), substantial cost-transformation savings (INR 8,600 crore in 9M), strong cash generation and a reduction in net debt with leverage at ~2.6x. Europe remains a mixed picture — Netherlands and U.K. show improvement versus prior periods and structural policy steps (CBAM and EU safeguards) are expected to support prices, but near-term headwinds persist from lower realizations, US tariffs, emissions costs and U.K. policy uncertainty. Management reiterated active CapEx and transformation plans (EAF in U.K., downstream ramp-ups, Hisarna pilot) and remains focused on calibrated capital allocation. On balance, positive momentum on profitability, cash flow and cost transformation outweighs the region-specific challenges and short-term realization pressures.Positive Updates
Strong 9M Consolidated EBITDA and Margin Expansion
Consolidated EBITDA for the 9 months ended Dec-31, 2025 rose 31% YoY to INR 24,894 crore (from INR 19,040 crore) and EBITDA margin expanded by ~300 bps from 12% to 15%, reflecting disciplined execution amid macro uncertainty.
Negative Updates
Decline in Steel Realizations (Q3)
Steel realizations declined QoQ in India and Netherlands; India Q3 realizations down ~INR 2,100 vs Q2. Consolidated adverse revenue impact of lower realizations was ~INR 7,400 crore YoY, largely offset by volumes and lower raw-material costs.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong 9M Consolidated EBITDA and Margin Expansion
Consolidated EBITDA for the 9 months ended Dec-31, 2025 rose 31% YoY to INR 24,894 crore (from INR 19,040 crore) and EBITDA margin expanded by ~300 bps from 12% to 15%, reflecting disciplined execution amid macro uncertainty.
Read all positive updates
Company Guidance
Tata Steel guided a stronger Q4 driven by higher volumes and cost savings: consolidated Q3 revenue was INR57,000 crore with EBITDA INR8,309 crore (15% margin) and 9M EBITDA up 31% YoY to INR24,894 crore (margin +300bps to 15%); cost transformation has delivered INR8,600 crore in 9M (93% compliance) including >INR3,000 crore this quarter (India ~INR890 crore, U.K. ~INR570 crore, Netherlands ~INR1,600 crore). Management expects Q4 volumes ~+0.5 Mt QoQ (Netherlands ~+0.4 Mt), India realizations ~+INR2,300/t QoQ, U.K. ~+GBP5/t, Netherlands mix-driven ~-EUR30–33/t QoQ offset by cost gains, coking coal consumption ~+US$15/t QoQ (purchase +$22), and EBITDA expansion across India, U.K. and NL; net debt fell to INR81,834 crore (net-debt/EBITDA ~2.6x), Q3 operating cash flow >INR10,300 crore, CapEx ~INR3,290 crore and Q3 free cash flow ~INR7,054 crore. They expect NINL FID in months (35–40 months execution), Ludhiana commissioning soon, and see CBAM and June‑2026 safeguard revisions supporting European price recovery.Tata Steel Limited Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
70
Positive
Cash Flow
68
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.21T | 2.19T | 2.29T | 2.43T | 2.44T | 1.56T |
| Gross Profit | 1.18T | 1.14T | 1.16T | 1.20T | 1.54T | 941.03B |
| EBITDA | 273.07B | 239.65B | 212.88B | 296.50B | 637.20B | 275.13B |
| Net Income | 68.07B | 34.21B | -44.37B | 87.60B | 401.54B | 74.90B |
Balance Sheet | ||||||
| Total Assets | 2.86T | 2.79T | 2.73T | 2.88T | 2.85T | 2.45T |
| Cash, Cash Equivalents and Short-Term Investments | 100.64B | 100.48B | 88.55B | 184.23B | 260.79B | 141.42B |
| Total Debt | 956.43B | 948.01B | 870.82B | 848.93B | 755.54B | 885.01B |
| Total Liabilities | 1.90T | 1.88T | 1.81T | 1.83T | 1.68T | 1.68T |
| Stockholders Equity | 949.47B | 911.70B | 920.36B | 1.03T | 1.14T | 742.39B |
Cash Flow | ||||||
| Free Cash Flow | 56.40B | 78.41B | 20.94B | 75.41B | 338.59B | 373.48B |
| Operating Cash Flow | 130.74B | 235.12B | 203.01B | 216.83B | 443.81B | 443.27B |
| Investing Cash Flow | -65.94B | -141.73B | -142.51B | -186.80B | -108.81B | -93.23B |
| Financing Cash Flow | -98.48B | -70.02B | -110.97B | -69.81B | -234.01B | -370.90B |
Tata Steel Limited Technical Analysis
Positive
206.60
Price Trends
199.23
Positive
186.82
Positive
176.47
Positive
Market Momentum
1.40
Negative
60.12
Neutral
87.42
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TATASTEEL, the sentiment is Positive. The current price of 206.6 is above the 20-day moving average (MA) of 194.77, above the 50-day MA of 199.23, and above the 200-day MA of 176.47, indicating a bullish trend. The MACD of 1.40 indicates Negative momentum. The RSI at 60.12 is Neutral, neither overbought nor oversold. The STOCH value of 87.42 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:TATASTEEL.
Tata Steel Limited Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ₹748.01B | 10.41 | ― | 4.05% | 20.05% | 15.58% | |
73 Outperform | ₹686.08B | 40.58 | ― | 1.21% | 6.45% | 1.13% | |
69 Neutral | ₹2.58T | 20.88 | ― | 2.11% | -0.42% | 132.70% | |
68 Neutral | ₹544.32B | 42.42 | ― | 0.77% | 8.14% | ― | |
66 Neutral | ₹2.97T | 33.24 | ― | 0.26% | 2.14% | 20.37% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
57 Neutral | ₹1.24T | 140.76 | ― | 0.20% | -2.21% | -46.30% |
* Basic Materials Sector Average
IN:TATASTEEL
Tata Steel Limited
206.60
73.26
54.94%
IN:JINDALSTEL
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1,217.55
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44.20%
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1,215.20
209.41
20.82%
IN:NMDC
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85.08
24.87
41.30%
IN:SAIL
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166.10
54.15
48.37%
IN:UPL
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644.80
-7.38
-1.13%
Tata Steel Limited Corporate Events
Tata Steel Secures Extended Court Protection in ₹4,300-Crore Sukinda Mining Dispute
Jan 12, 2026
Tata Steel has updated exchanges on ongoing litigation related to substantial demand notices issued by the Office of the Deputy Director of Mines, Jajpur, over alleged shortfalls in mineral and chrome ore dispatch from its Sukinda Chromite Block f...
Tata Steel to Contest ₹890 Crore GST Tax and Penalty Order, Says No Operational Impact
Dec 28, 2025
Tata Steel Limited has disclosed that it has received an order from the Joint Commissioner of CGST Central Excise, Jamshedpur, directing the company to pay ₹890.52 crore in tax, an equal amount as penalty, and applicable interest, in connec...
Tata Steel’s Dutch Units Face €1.4 Billion Collective Claim Over Emissions
Dec 25, 2025
Tata Steel has disclosed that its Dutch subsidiaries, Tata Steel Nederland B.V. and Tata Steel IJmuiden B.V., are facing a collective legal action in the Netherlands filed by Stichting Frisse Wind.nu on behalf of residents living near the company&...
Tata Steel Cleared of ₹161 Crore GST Compensation Cess Demand After Favourable Order
Dec 22, 2025
Tata Steel Limited has received a favourable order from the Joint Commissioner of CGST Central Excise, Jamshedpur, in relation to a show cause-cum-demand notice originally issued to erstwhile Tata Steel Long Products Limited, which has since been...
Tata Steel to Contest Over ₹1,132 Crore GST Tax and Penalty Order
Dec 19, 2025
Tata Steel has disclosed that it has received an order from the Commissioner of CGST Central Excise, Jamshedpur, directing the company to pay ₹493.35 crore in tax, a penalty of ₹638.83 crore and applicable interest, in connection with...
Tata Steel Faces Ongoing Legal Challenges Over Sukinda Chromite Block
Dec 12, 2025
Tata Steel Limited has announced ongoing litigation concerning its Sukinda Chromite Block, with two writ petitions filed against demand letters issued by the Office of Deputy Director of Mines, Jajpur. The demands, totaling over ₹4,313 crore...
Tata Steel Schedules Investor Meeting to Discuss Strategic Insights
Dec 12, 2025
Tata Steel Limited has announced a scheduled meeting with analysts and institutional investors, in compliance with the Securities and Exchange Board of India’s regulations. This meeting, set for December 17, 2025, aims to engage with stakeho...
Tata Steel Schedules Investor Meeting to Strengthen Stakeholder Engagement
Dec 8, 2025
Tata Steel Limited has announced a scheduled virtual meeting with analysts and institutional investors, as part of its compliance with the Securities and Exchange Board of India’s regulations. This meeting, set for December 11, 2025, is an o...
Tata Steel Secures Interim Relief in Sukinda Chromite Block Dispute
Nov 22, 2025
Tata Steel Limited is currently involved in a legal dispute concerning a demand for over ₹2410 crore related to the Sukinda Chromite Block. The Orissa High Court has provided interim protection to Tata Steel, preventing authorities from taki...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.