Tata Steel hits new high, up 12% in 1 month; what's driving metal stock?

MOFSL remains constructive on Tata Steel on the back of a strong domestic demand outlook, safeguard duty-led price support, ongoing capacity expansions and a gradual turnaround in the EU biz.

Tata Steel share price today

 

Share price of Tata Steel hit a new high of ₹211.35, gaining 1 per cent on the BSE in Thursday’s intra-day trade in an otherwise tepid market owing to strong domestic business outlook. In comparison, the BSE Sensex was down 0.18 per cent at 83,585 at 09:38 AM. 

The stock price of the Tata Group Company surpassed its previous high of ₹211.15 touched on February 10, 2026. In the past one month, Tata Steel has outperformed the market by soaring 12 per cent. In comparison, the BSE Sensex and BSE Metal index were up 0.5 per cent and 3.6 per cent, respectively.  CATCH STOCK MARKET UPDATES TODAY LIVE

What’s driving Tata Steel stock price?

Tata Steel reported a steady performance in the December 2025 quarter (Q3FY26). On the consolidated basis, total operating income for the quarter came in at ₹57,002 crore, up 6 per cent year-on-year (YoY) with steel sales volume of ~8.2 MT, up 6 per cent YoY. Reported EBITDA for the quarter came in at ₹8,200 crore with corresponding EBITDA margins at 14.4 per cent, down 77 bps quarter-on-quarter. 

Looking ahead, the Tata Steel expects improved performance in Q4FY26, supported by a safeguard-duty-led price recovery of 12 per cent, with net sales realization at the Indian operations expected to increase by ~₹2,300/ton. In addition, higher operating leverage, continued cost savings, the implementation of the Carbon Border Adjustment Mechanism (CBAM), and import quota restrictions in Europe are expected to support profitability in Q4FY26. 

Tata Steel, a century-old industry leader, is targeting ~40 MTPA capacity by 2030 to meet the surging demand driven by a government agenda that seeks to increase national crude steel capacity to 300 MT and per capita consumption to 160 kg by FY31.  ALSO READ | Inox Green shares jump 7% as group wins Wind World IPP, O&M business

Brokerages see more upside in Tata Steel stock price

Motilal Oswal Financial Services (MOFSL) remains constructive on Tata Steel on the back of a strong domestic demand outlook, safeguard duty-led price support, ongoing capacity expansions and a gradual turnaround in the European Union (EU) business. The brokerage firm maintains a 'BUY' rating with a SoTP-based target price of ₹240 per share for September 2027 estimate. 

Tata is one of the largest players in India's steel sector and we maintain a constructive stance, supported by a strong domestic demand outlook and safeguard duty-led price support.  

In Europe, while near-term profitability remains contingent on spread recovery and energy costs, structural measures such as CBAM and tighter import quotas should gradually improve pricing discipline and reduce import-led margin pressure. In India business is expected to continue its strong performance and an improvement in the EU performance to support overall earnings. Net debt stood at ₹81,800 crore as of Q3FY26, which includes cash of ₹10,800 crore. This translates into a net debt-to-EBITDA ratio of 2.59x as of December 2025, the brokerage firm said. 

With safeguard duty led steel price hike, favourable demand tailwind, and strategic capacity expansion, Tata Steel’s Indian operation is well positioned for sustained long term growth. Moreover, EU import-control measures are expected to strengthen profitability at Netherland operation. On that note, analysts at ICICI Securities said they maintain BUY rating on Tata Steel with SOTP-based revised target price of ₹250 (8.5x/4x EV/EBITDA to India/Europe business on FY28E).  =========================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.