Tata Steel share price rose over 3% in early trade on Thursday after the company announced its Q2 results. Tata Steel shares gained as much as 3.10% to ₹184.20 apiece on the BSE.
The Tata Group company, Tata Steel reported a 272% jump in its consolidated net profit at ₹3,102 crore for the second quarter of FY26 as compared to a net profit of ₹833 crore in the year-ago period.
The company’s consolidated revenue from operations in Q2FY26 grew 9% to ₹58,689 crore from ₹53,905 crore, year-on-year (YoY).
Although the global operating environment remained challenging due to persistent tariff overhangs, geopolitical tensions, and elevated steel exports, the company delivered better-than-expected numbers in Q2, largely driven by a strong performance in its Indian operations and ongoing cost optimisation, which offset the lower realisations.
Consolidated EBITDA on a reported basis increased by 46% YoY to ₹9,106 crore, with a margin of around 16%. The rise in operating profit was led by an increase of EBITDA in its Netherlands operations, a decrease in the EBITDA loss in the UK business, and a 25% increase in the EBITDA for core India business.
As part of growing the India downstream portfolio, Tata Steel executed a share purchase agreement with BlueScope Steel to acquire the balance 50% stake in Tata BlueScope Steel Private Limited for ₹1,100 crore.
Earlier, Tata Steel signed an Asset Transfer Agreement with Indian Metals & Ferro Alloys Ltd. for the sale of Ferro Alloy Plant at Jajpur, Odisha for a base consideration of ₹610 crore.
Looking ahead, the company said it remains focused on volume growth in India, strengthening raw material linkages, and optimising capital allocation. It also noted that it is closely monitoring policy developments in the EU and UK and will continue to prioritise, optimise, and sequence decarbonisation-related capex to ensure affordability for all stakeholders.
Should you buy the Tata Steel stock after Q2 results?
Brokerages maintained a largely positive stance on Tata Steel following its Q2FY26 results, citing strong operational performance in India and steady progress on cost efficiency.
Morgan Stanley retained an Overweight rating with a target price of ₹200, noting that the company’s standalone EBITDA was 4% above estimates, while consolidated EBITDA exceeded projections by 6%. Consolidated PAT came higher than estimates, though net debt rose sequentially to ₹87,000 crore due to adverse forex movements. The brokerage highlighted that Tata Steel achieved 94% of its planned cost savings for the first half of the fiscal year.
Jefferies also maintained a Buy rating with the same target price, pointing to a 20% QoQ and 56% YoY rise in EBITDA, 7% above its estimates, led by robust performance in India and the Netherlands.
CLSA, meanwhile, retained a Hold rating with a target price of ₹170, noting that consolidated adjusted EBITDA of ₹9,000 crore, up 20% QoQ, was in line with expectations. It added that lower realisations were offset by ongoing cost takeout initiatives and that net debt increased ₹2,200 crore during the quarter to ₹87,000 crore.
Tata Steel Share Price Performance
Tata Steel share price gained over 5% in one month and has rallied 14% in three months. The Tata Group stock has risen 22% in six months and has surged 33% on a year-to-date (YTD) basis.
Over the past one year, Tata Steel share price has gained 31%, and it has jumped 51% in two years. Tata Steel stock price has delivered multibagger returns of 275% in the past five years.
At 11:30 AM, Tata Steel share price was trading 1.88% higher at ₹182 apiece on the BSE.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
