Tata Steel’s stock gained over 2% in Thursday’s morning session after the company posted a stronger operational performance for the September quarter (Q2 FY26). As of 9:35 AM, the shares were trading 2.12% higher at ₹182.39, reacting to improved profitability and better volumes.
Tata Steel Q2 Results (Consolidated, QoQ)
The company reported a 10.4% rise in revenue, which increased to ₹58,689 crore in Q2 FY26 from ₹53,178 crore in the previous quarter.
EBITDA jumped 19.8% QoQ to ₹8,897 crore, improving the overall operating margin to 15.2%, up from 14% in Q1.
The biggest improvement came at the bottom line. Tata Steel posted a 49.3% surge in net profit, rising sharply to ₹3,102 crore from ₹2,078 crore in the June quarter.
Brokerage recommendations: Buy, sell or hold Tata Steel?
Morgan Stanley on Tata Steel
Rating: Overweight
Target Price: ₹200 per share
Key takeaways:
-
Standalone EBITDA above estimates, driven by strong cost controls.
-
Consolidated EBITDA came in 6% ahead of expectations.
-
PAT at ₹3,520 crore was higher than the estimated ₹2,960 crore.
-
Net debt rose QoQ, partly due to adverse FX movement.
-
Tata Steel achieved 94% of its planned H1 cost savings.
Jefferies on Tata Steel
Rating: Buy
Target Price: ₹200 per share
Highlights:
-
EBITDA beat estimates, led by India and Netherlands operations.
-
Standalone volumes increased 9% YoY due to the ramp-up of the 5 mtpa capacity.
-
EBITDA/tonne fell 2% QoQ in India but improved sequentially in Netherlands; UK losses widened.
-
Pre-exceptional PBT surged 47% QoQ and was 13% above estimates.
-
Net debt increased 3% QoQ.
CLSA on Tata Steel
Rating: Hold
Target Price: ₹170 per share
CLSA commentary:
-
Q2 consolidated adjusted EBITDA was largely in line, with lower realisations offset by improved cost efficiencies.
-
Standalone volumes grew 9% YoY due to new capacity ramp-up.
-
Europe operations remained mixed — Netherlands improved, UK losses expanded.
-
Net debt increased ₹2,200 crore to ₹87,000 crore.
-
Tata has achieved ₹5,450 crore of its planned cost take-outs in H1FY26.
What should investors do now?
Brokerages remain divided:
-
Morgan Stanley and Jefferies stay bullish, citing strong India business, cost control, and improving margins.
-
CLSA remains cautious, pointing to weak UK operations and elevated net debt.
The overall outlook hinges on:
-
European turnaround,
-
cost improvement execution,
-
and the performance of the newly ramped-up capacity in India.
Disclaimer
The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Brokerage recommendations belong solely to the respective firms and not the author or Business Upturn.
