Tata Steel Limited (IN:TATASTEEL)
:TATASTEEL
Want to see IN:TATASTEEL full AI Analyst Report?
Top Page
Tata Steel Limited
(TATASTEEL)
Select Model
Select Model
Rating:64Neutral
Price Target:
₹232.00
▲(9.41% Upside)
Action:Reiterated
Date:05/17/26
The score is driven primarily by fair-but-improving financial performance (better leverage and FY26 cash-flow recovery, but still cycle-volatile earnings) and supportive technicals (price above major moving averages with positive momentum). Valuation is only average for a cyclical steel name, and while the latest earnings call was net positive on cost savings, EBITDA momentum, and deleveraging, Europe and input-cost/realization risks temper the outlook.
Positive Factors
Cost Transformation
Sustained, executed cost-transformation savings of INR 8,600 crore demonstrate durable operational improvement. These savings structurally boost margins, provide recurring efficiency tailwinds across regions, and create room to fund investments and absorb commodity cost swings over the medium term.
Negative Factors
Cyclical Earnings
Significant swing in profitability across cycles highlights exposure to commodity-price and demand volatility. This structural cyclicality makes margins and returns erratic, complicates long-term cash-flow forecasting, and raises the bar for consistent deleveraging.
Read all positive and negative factors
Positive Factors
Negative Factors
Cost Transformation
Sustained, executed cost-transformation savings of INR 8,600 crore demonstrate durable operational improvement. These savings structurally boost margins, provide recurring efficiency tailwinds across regions, and create room to fund investments and absorb commodity cost swings over the medium term.
Read all positive factors
Tata Steel Limited (TATASTEEL) vs. iShares MSCI India ETF (INDA)
Market Cap
₹2.61T
Dividend Yield2.11%
Average Volume (3M)1.52M
Price to Earnings (P/E)20.4
Beta (1Y)1.17
Revenue Growth6.22%
EPS GrowthN/A
CountryIN
Employees121,869
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)5.46
Shares Outstanding12,483,531,000
10 Day Avg. Volume1,992,314
30 Day Avg. Volume1,523,274
Financial Highlights & Ratios
PEG Ratio0.10
Price to Book (P/B)2.34
Price to Sales (P/S)1.03
P/FCF Ratio17.73
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹215.00Price Target Upside1.39% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)14.79
Revenue Forecast (FY)₹2.60T
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 makes money primarily by producing steel and selling it to end-users and intermediaries across multiple industries. Its core revenue stream is the sale of steel products (e.g., flat products such as coils/sheets and long products such a...
Tata Steel Limited Earnings Call Summary
Earnings Call Date:Feb 06, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jul 27, 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
58
Neutral
Balance Sheet
64
Positive
Cash Flow
61
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.21T | 2.32T | 2.19T | 2.29T | 2.43T | 2.44T |
| Gross Profit | 1.18T | 1.01T | 1.14T | 1.16T | 1.20T | 1.54T |
| EBITDA | 273.07B | 324.94B | 239.65B | 212.88B | 296.50B | 637.20B |
| Net Income | 68.07B | 107.94B | 34.21B | -44.37B | 87.60B | 401.54B |
Balance Sheet | ||||||
| Total Assets | 2.86T | 3.01T | 2.79T | 2.73T | 2.88T | 2.85T |
| Cash, Cash Equivalents and Short-Term Investments | 100.64B | 110.61B | 100.48B | 88.55B | 184.23B | 260.79B |
| Total Debt | 956.43B | 923.82B | 948.01B | 870.82B | 848.93B | 755.54B |
| Total Liabilities | 1.90T | 1.97T | 1.88T | 1.81T | 1.83T | 1.68T |
| Stockholders Equity | 949.47B | 1.02T | 911.70B | 920.36B | 1.03T | 1.14T |
Cash Flow | ||||||
| Free Cash Flow | 56.40B | 134.97B | 78.41B | 20.94B | 75.41B | 338.59B |
| Operating Cash Flow | 130.74B | 280.56B | 235.12B | 203.01B | 216.83B | 443.81B |
| Investing Cash Flow | -65.94B | -159.62B | -141.73B | -142.51B | -186.80B | -108.81B |
| Financing Cash Flow | -98.48B | -133.22B | -70.02B | -110.97B | -69.81B | -234.01B |
Tata Steel Limited Technical Analysis
Positive
212.05
Price Trends
204.59
Positive
199.02
Positive
183.81
Positive
Market Momentum
0.88
Positive
47.97
Neutral
24.43
Neutral
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 212.05 is below the 20-day moving average (MA) of 213.10, above the 50-day MA of 204.59, and above the 200-day MA of 183.81, indicating a neutral trend. The MACD of 0.88 indicates Positive momentum. The RSI at 47.97 is Neutral, neither overbought nor oversold. The STOCH value of 24.43 is Neutral, 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 | ₹772.62B | 10.41 | ― | 4.05% | 18.56% | 6.55% | |
66 Neutral | ₹3.14T | 12.28 | ― | 0.26% | 9.86% | 536.23% | |
64 Neutral | ₹2.61T | 20.45 | ― | 2.11% | 6.22% | ― | |
63 Neutral | ₹830.24B | 18.53 | ― | 1.21% | 8.13% | 42.14% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | ₹533.98B | 11.30 | ― | 0.77% | 11.15% | 127.12% | |
54 Neutral | ₹1.23T | 27.10 | ― | 0.20% | 6.95% | 18.97% |
* Basic Materials Sector Average
IN:TATASTEEL
Tata Steel Limited
209.20
50.50
31.82%
IN:JINDALSTEL
Jindal Steel & Power Ltd.
1,209.85
257.59
27.05%
IN:JSWSTEEL
JSW Steel Limited
1,285.15
256.17
24.90%
IN:NMDC
NMDC Limited
87.88
17.80
25.40%
IN:SAIL
Steel Authority of India Limited
201.00
74.83
59.31%
IN:UPL
UPL Limited
632.55
6.23
0.99%
Tata Steel Limited Corporate Events
Orissa High Court Upholds Key Mining Rule in Tata Steel Sukinda Dispute
Apr 28, 2026
Tata Steel has disclosed an important legal development concerning its Sukinda Chromite Block in Odisha, where it faced two substantial government demands tied to alleged shortfalls in mineral and chrome ore dispatch under the Mine Development and...
Tata Steel Challenges ₹1,755 Crore Jharkhand Coal Demand Before Coal Ministry
Apr 24, 2026
Tata Steel has disclosed that it received a demand notice from the District Mining Office in Ramgarh, Jharkhand, seeking ₹1,755.10 crore for alleged excess extraction of about 16.24 million tonnes of coal from its West Bokaro Colliery betwee...
Tata Steel to Pilot World-First EASyMelt Technology at Jamshedpur Plant
Apr 21, 2026
Tata Steel has signed definitive agreements with SMS Group’s Paul Wurth unit to deploy the world’s first EASyMelt, an electrically assisted syngas smelter technology, at its ‘E’ blast furnace in Jamshedpur. The industrial-s...
Tata Steel Injects $180 Million into Overseas Subsidiary T Steel Holdings
Mar 24, 2026
Tata Steel has further strengthened its capital support to wholly owned foreign subsidiary T Steel Holdings Pte. Ltd. by subscribing to an additional 178,57,14,286 equity shares, each with a face value of USD 0.1008. The total infusion amounts to ...
Tata Steel Publishes SEBI-Mandated Notice on Duplicate Securities Issue
Mar 17, 2026
Tata Steel Limited has notified stock exchanges that it has published a newspaper advertisement regarding the proposed issue of duplicate securities, following a recent SEBI circular requiring listed companies to publicize the loss of securities. ...
Tata Steel Publishes Notices on SEBI-Compliant Physical Share Transfer Window
Mar 17, 2026
Tata Steel has published newspaper advertisements announcing a proposed transfer of shares in physical form, in line with a Securities and Exchange Board of India circular that permits a special window for re-lodgement of such transfers. The adver...
Tata Steel Schedules Investor Meetings During JP Morgan India Credit Trip 2026
Mar 5, 2026
Tata Steel has announced that it will participate in JP Morgan’s India Credit Investor Trip 2026, scheduling one-to-one and group meetings with analysts and institutional investors in Mumbai on March 10 and March 11, 2026, at 10:00 a.m. IST....
Tata Steel to Engage Investors at JP Morgan India Credit Trip 2026
Mar 5, 2026
Tata Steel has scheduled analyst and institutional investor meetings as part of JP Morgan’s India Credit Investor Trip 2026 in Mumbai on March 10 and 11, 2026, with sessions planned as both one-to-one and group meetings. The engagement under...
Tata Steel Injects USD 264 Million Into Overseas Subsidiary T Steel Holdings
Feb 26, 2026
Tata Steel has further strengthened its international structure by injecting additional equity into T Steel Holdings Pte. Ltd., its wholly owned foreign subsidiary. On February 26, 2026, the company acquired 2,619,047,620 equity shares in the Sing...
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.