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Tata Steel Limited
(TATASTEEL)
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Rating:61Neutral
Price Target:
₹197.00
▲(4.54% Upside)
Action:Reiterated
Date:07/31/26
The score is anchored by fair but volatile financial performance (cyclical profitability swings and lumpy cash flows, though leverage is improving). Earnings-call fundamentals were a relative bright spot due to strong India operations, improving EBITDA/tonne, and reiterated liquidity/leverage comfort, partially offset by Europe operational/regulatory risks and cost inflation. Technicals are mildly weak with the stock below key medium-term moving averages, and valuation looks middling with a moderate dividend yield.
Positive Factors
Strong India operations & margins
India is the structural growth engine: sustained high volumes and a standalone EBITDA margin around 26–27% indicate durable domestic demand, better product mix and meaningful per‑tonne margin uplift. This strengthens cash generation and insulates group earnings from weaker overseas cycles.
Negative Factors
Netherlands DSP shutdown & regulatory risk
Regulatory and potential legal actions against the Dutch DSP create persistent uncertainty on ~20% of Netherlands capacity. Remediation, stricter local standards and criminal probes can prolong downtime, raise compliance costs and constrain European earnings and recovery timelines.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong India operations & margins
India is the structural growth engine: sustained high volumes and a standalone EBITDA margin around 26–27% indicate durable domestic demand, better product mix and meaningful per‑tonne margin uplift. This strengthens cash generation and insulates group earnings from weaker overseas cycles.
Read all positive factors
Tata Steel Limited (TATASTEEL) vs. iShares MSCI India ETF (INDA)
Market Cap
₹2.35T
Dividend Yield2.17%
Average Volume (3M)1.42M
Price to Earnings (P/E)20.8
Beta (1Y)1.10
Revenue Growth10.51%
EPS Growth143.13%
CountryIN
Employees121,869
SectorGeneral
Sector StrengthN/A
IndustrySteel
Share Statistics
EPS (TTM)8.86
Shares Outstanding12,483,531,000
10 Day Avg. Volume1,044,083
30 Day Avg. Volume1,415,764
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
₹225.50Price Target Upside19.66% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)13.18
Revenue Forecast (FY)₹2.61T
Tata Steel Limited Business Overview & Revenue Model
Company Description
Tata Steel Limited operates as a major producer and distributor of steel products worldwide, with extensive operations spanning India, Europe, Southeast Asia, and other international markets through various strategic segments. The company offers a...
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:Jul 30, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call presents a predominantly constructive picture driven by a strong India performance (robust margins, volume mix gains, downstream momentum), healthy consolidated EBITDA and a solid balance sheet with manageable net leverage and ample liquidity. Offsetting risks include cost pressures from geopolitical developments, the Netherlands DSP shutdown and regulatory/legal uncertainties, execution/timing risks on major projects, and subdued European demand with elevated inventories. Overall the positives (India outperformance, product approvals, capex approvals and liquidity) outweigh the material but contained negatives, yielding a cautiously positive outlook.Positive Updates
Consolidated Revenue and EBITDA
Consolidated revenue ~INR 60,794 crore and consolidated EBITDA ~INR 9,370 crore for Q1 FY27; consolidated EBITDA per tonne improved ~INR 2,400 YoY and ~INR 1,490 QoQ, tracking ~INR 13,000/tonne (≈15% margin).
Negative Updates
West Asia Disruption and Unplanned Costs
Geopolitical developments in West Asia and elevated Chinese exports pressured international prices and supply chains; unplanned consolidated cost increases of ~INR 1,200 crore directly attributed to the West Asia conflict (energy, freight, insurance spikes).
Read all updates
Q1-2027 Updates
Positive
Negative
Consolidated Revenue and EBITDA
Consolidated revenue ~INR 60,794 crore and consolidated EBITDA ~INR 9,370 crore for Q1 FY27; consolidated EBITDA per tonne improved ~INR 2,400 YoY and ~INR 1,490 QoQ, tracking ~INR 13,000/tonne (≈15% margin).
Read all positive updates
Company Guidance
The management guided that Q1 delivered a resilient set of numbers with consolidated revenue ~INR 60,794 crore and consolidated EBITDA ~INR 9,370 crore (about INR 13,000/tonne or ~15% consolidated margin), after unplanned West Asia costs of ~INR 1,200 crore; consolidated EBITDA/tonne improved ~INR 2,400 YoY and ~INR 1,490 QoQ. India remains the growth engine (crude steel ~5.76 Mt, deliveries ~5.17 Mt) with India EBITDA ~INR 9,900 crore (+32% YoY) and India EBITDA/tonne up from INR 15,907 in Q4 to INR 19,162 in Q1; Tata Steel standalone revenue was INR 36,897 crore with EBITDA ~INR 9,409 crore (~26–27% margin). Liquidity and leverage were reiterated as healthy (net debt ~INR 84,000 crore, net debt/EBITDA ~2.3x, group liquidity ~INR 45,950 crore incl. cash ~INR 13,200 crore) while Q1 capex was ~INR 3,579 crore and Board approved a NINL long‑products expansion (4.8 Mt at capex ~INR 33,873 crore to take NINL to ~6.2 Mt) with a ~48‑month build timeline. Near‑term operating guidance: India Q2 realizations expected ~INR 1,500/tonne lower than Q1 (but rupee crore to be better), UK prices were up and management expects another GBP ~70–80/tonne improvement in Q2 (UK deliveries ~0.5 Mt; UK EBITDA loss narrowed to ~‑GBP27m in Q1), Netherlands production was ~1.55 Mt (deliveries ~1.4 Mt) with DSP (≈20% of NL capacity) under a 4‑week trial from Aug 5 and an expected ~EUR 10/tonne QoQ uplift in Q2; coking‑coal consumption cost guidance ~US$184/t (Q4 ~US$160/t) with expected Q2 increases of ~US$5/t in India and ~US$10/t in Netherlands.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 | 2.39T | 2.32T | 2.19T | 2.29T | 2.43T | 2.44T |
| Gross Profit | 1.24T | 1.01T | 1.14T | 1.16T | 1.20T | 1.54T |
| EBITDA | 356.38B | 350.90B | 239.65B | 212.88B | 296.50B | 637.20B |
| Net Income | 110.35B | 107.94B | 34.21B | -44.37B | 87.60B | 401.54B |
Balance Sheet | ||||||
| Total Assets | 0.00 | 3.01T | 2.79T | 2.73T | 2.88T | 2.85T |
| Cash, Cash Equivalents and Short-Term Investments | 99.79B | 110.61B | 100.48B | 88.55B | 184.23B | 260.79B |
| Total Debt | 0.00 | 923.82B | 948.01B | 870.82B | 848.93B | 755.54B |
| Total Liabilities | -1.04T | 1.97T | 1.88T | 1.81T | 1.83T | 1.68T |
| Stockholders Equity | 1.04T | 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
Negative
188.45
Price Trends
186.06
Negative
191.83
Negative
191.23
Negative
Market Momentum
0.17
Negative
47.41
Neutral
41.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TATASTEEL, the sentiment is Negative. The current price of 188.45 is above the 20-day moving average (MA) of 185.80, above the 50-day MA of 186.06, and below the 200-day MA of 191.23, indicating a bearish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 47.41 is Neutral, neither overbought nor oversold. The STOCH value of 41.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:TATASTEEL.
Tata Steel Limited Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | ₹756.30B | 17.55 | ― | 1.29% | 6.45% | 40.79% | |
64 Neutral | ₹609.74B | 18.95 | ― | 0.40% | 9.82% | 26.30% | |
61 Neutral | ₹2.35T | 20.80 | ― | 2.17% | 10.51% | 143.13% | |
61 Neutral | ₹3.10T | 12.35 | ― | 0.57% | 12.22% | 411.48% | |
57 Neutral | ₹122.53B | 142.48 | ― | ― | 41.57% | ― | |
56 Neutral | ₹1.15T | 42.49 | ― | 0.18% | 16.45% | -8.77% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
IN:TATASTEEL
Tata Steel Limited
184.65
20.53
12.51%
IN:JINDALSTEL
Jindal Steel Limited
1,132.00
70.11
6.60%
IN:JSL
Jindal Stainless Limited
746.95
-11.23
-1.48%
IN:JSWSTEEL
JSW Steel Limited
1,255.00
115.60
10.15%
IN:NSLNISP
NMDC Steel Limited
41.38
-5.93
-12.53%
IN:SAIL
Steel Authority of India Limited
181.60
48.28
36.22%
Tata Steel Limited Corporate Events
Tata Steel to Contest GST Penalty Appeal as Tax Dispute Remains Sub Judice
Jun 26, 2026
Tata Steel has disclosed that the Central GST and Central Excise Department has appealed against an adjudication order that had previously dropped a GST-related penalty of ₹368.72 crore, linked to an input tax credit dispute covering financi...
Tata Steel Infuses $172 Million into Overseas Arm T Steel Holdings
Jun 24, 2026
Tata Steel has strengthened its international corporate structure by increasing equity in its wholly owned foreign subsidiary, T Steel Holdings Pte. Ltd. The move underscores the company’s continued use of TSHP as a central investment and ho...
Tata Steel to Engage Global Investors at London IIFL Conference
Jun 18, 2026
Tata Steel has notified the stock exchanges about its upcoming participation in the IIFL Invest India Conference in London. The company’s management will hold one-to-one and group meetings with analysts and institutional investors on June 23...
Tata Steel Sends Physical Notices to Investors for FY26 Integrated Report and AGM
Jun 4, 2026
Tata Steel has notified stock exchanges that it is sending physical letters to shareholders and debenture holders who have not registered email addresses, providing a web link and pathway to access its 11th Integrated Report and 119th Annual Accou...
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.