CLSA has reiterated a Hold rating on Tata Steel, assigning a target price of ₹145, slightly below the current market price of ₹150.95. The brokerage noted that the company’s Q4 consolidated adjusted EBITDA (pre-exceptionals) came in at ₹6,500 crore, down 7% year-on-year, but broadly in line with expectations.
Tata Steel’s standalone volumes grew 3% YoY, aided by ongoing capacity ramp-ups and seasonal demand strength. Profitability at the India operations also improved, with EBITDA per tonne rising ₹1,150 sequentially to ₹12,700/tonne, largely driven by lower input costs.
In Europe, quarterly losses narrowed to US$37/tonne from US$42/tonne in Q3, as the Netherlands business returned to profitability, partially offsetting ongoing weakness in the UK.
On the balance sheet front, net debt declined by ₹3,000 crore, bringing it down to ₹82,700 crore, supported by better working capital management.
Importantly, Tata Steel has guided for ₹11,500 crore in cost savings across its India, UK, and Netherlands operations in FY26. CLSA notes that the translation of these savings into EBITDA growth and cash flow generation will be the key metrics to watch in the coming quarters.
Disclaimer: This article is based solely on brokerage analysis and publicly available information. It does not constitute investment advice. Business Upturn and the author do not recommend buying or selling any stock mentioned.
