Consolidated net profit attributable to owners of the company jumped 723% YoY to Rs 2,689 crore from Rs 327 crore a year ago.
Revenue from operations rose 6% YoY to Rs 57,002 crore in Q3FY26 compared with Rs 53,648 crore in the corresponding quarter last year. On a sequential basis, however, profit after tax declined 13% from Rs 3,102 crore in Q2FY26, while revenue fell 3% from Rs 58,689 crore in the July–September quarter.
EBITDA stood at Rs 8,309 crore, up 39% YoY, with margins around 15%. In India, revenue came in at Rs 35,725 crore and EBITDA at Rs 8,291 crore, translating into a margin of 23%. Crude steel production in India increased 12% YoY to 6.34 million tons, while deliveries rose 14% YoY to a record 6.04 million tons — the company’s highest-ever quarterly deliveries.
Should you buy, sell or hold?
Axis Securities has maintained a Buy call and a target price of Rs 220 and expects an improvement in spreads during Q4FY26. In India, spreads are likely to expand as a Rs 3,500 per tonne recovery in HRC spot prices could lift blended NSRs by around Rs 2,300 per tonne QoQ, factoring in product mix and contracts. Although coking coal costs are projected to rise by about $15 per tonne, the impact is expected to be largely offset by sequential volume growth and a better product mix, supporting an EBITDA recovery in Q4FY26.
Nomura has maintained a Buy rating on Tata Steel and set a target price of Rs 220, citing expectations of margin expansion in Q4FY26 driven by stronger HRC pricing. The brokerage expects domestic blended realisations per tonne to improve by about 4% QoQ, or roughly Rs 2,300 per tonne. On the cost front, rising coking coal prices are likely to weigh on domestic operations, with management guiding for a $15 per tonne increase. Consolidated volumes are projected to rise 10% YoY to around 9.2 MT in Q4FY26F, leading to an estimated sequential increase of about Rs 400 per tonne in consolidated EBITDA to roughly Rs 10,400 per tonne.The brokerage noted that Tata Steel has delivered resilient performance even when HRC prices were near cyclical lows. While FY27F and FY28F consolidated volume forecasts remain unchanged, EBITDA estimates have been increased by 4% on improved pricing assumptions. Nomura’s EBITDA per tonne projections for FY27F and FY28F are 5% and 3% above consensus, respectively. The target price is based on a one-year forward EV/EBITDA multiple of 7.0x, unchanged, while the stock currently trades at around 8.1x.
Elara Capital has reiterated its Accumulate rating on Tata Steel and raised its target price to Rs 215 from Rs 187, citing the recent uptick in steel prices since mid-December and the imposition of safeguard duties on imports, which are expected to support near-term earnings growth. The brokerage has increased its EBITDA estimates for FY26 by 2% while maintaining projections for FY27 and FY28E.
Elara noted that the anticipated reduction in funding overhang from domestic operations toward EU businesses has led it to revise the valuation multiple for domestic operations to 6.5x EV/EBITDA from 6.0x earlier, while retaining a 5.0x multiple for other businesses. It has also rolled forward its valuation base to December 2027E from September 2027E, resulting in the
(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)