Tata Steel shares up 2% today: Here we decode why
What's the story
Tata Steel's shares surged by 2.5% to ₹156.88 per stock today, making it the top gainer on the Nifty 50 index. The surge came after the company announced its strong earnings for the April-June quarter (Q1 FY26). The impressive performance was largely attributed to higher steel realizations and government safeguards on imports.
Financial performance
Consolidated net profit jumps 116% YoY
Tata Steel reported a whopping 116.5% year-on-year jump in its consolidated net profit for the quarter, amounting to ₹2,077.7 crore as against ₹959.6 crore last year. The growth was driven by higher net realizations and planned cost-saving measures. However, the company's consolidated revenue fell by 2.9% YoY to ₹53,178.1 crore during the period under review.
Market reaction
Profit and revenue figures surpass market estimates
Despite the revenue decline, Tata Steel's profit and revenue figures surpassed market estimates of ₹1,786 crore and ₹51,409 crore, respectively. Sequentially, the company's profit was up nearly 60% while its revenue dropped by 5.4%. Jefferies maintained a "buy" rating on the stock with a target price of ₹200 per share, after noting that Q1 EBITDA rose by 11% YoY and exceeded their expectations by 4%.
Global outlook
Updates on UK and India operations
In India, the production and deliveries were slightly lower due to maintenance shutdowns at the Jamshedpur and Neelachal Ispat Nigam plants. The firm expects operations to normalize in upcoming quarters. In the UK, Tata Steel's revenue stood at £536 million, while its EBITDA loss narrowed to £41 million from £80 million in Q4 FY25 amid soft demand.