Tata Steel shares hit all-time high post Q3; brokerages raise target price

Tata Steel's share price rose 3 per cent, hitting an all-time high at ₹203 on BSE. At 9:38 AM, Tata Steel shares were trading 1.09 per cent higher at ₹199.2 per share. In comparison, the BSE Sensex was up 0.42 per cent at 83,929.96. 

 

The buying on the counter came after most brokerages raised their target on Tata Steel post its December quarter (Q3FY26) results released on February 6, 2026, after market hours. 

 

In the December quarter, Tata Steel reported a 723.1 per cent year-on-year (Y-o-Y) jump in consolidated net profit, attributable to owners, at ₹2,688.70 crore. The steel major’s net profit in the year-ago period stood at ₹326.64 crore.  

 

 

Its revenue from operations on a consolidated basis came in at ₹56.646.05 crore, as compared to ₹53.231 28 crore Y-o-Y.    Check detailed results here

Brokerages’ view on Tata Steel 

Emkay Global Financial Services | Buy | Target hiked to ₹230 from ₹200

Emkay Global said Tata Steel’s Q3FY26 consolidated adjusted Earnings before interest, tax, depreciation and amortisation (Ebitda) of ₹8,270 crore beat estimates, though it declined around 8 per cent quarter-on-quarter (Q-o-Q) due to weaker realisations and higher coking coal costs, partly offset by better volumes. 

 

Management remains optimistic on pricing, with expectations of sustainable price hikes in Europe, aided by carbon taxes and protectionist measures, and near-term price improvement in India, even as coal costs remain elevated. Key projects remain on track, including NINL by FY29 and the Ludhiana electric arc furnace (EAF) by Q1FY27.

 

On the back of these factors, Emkay has raised its FY27–FY28 Ebitda estimates by 3–8 per cent and increased its target price.

Motilal Oswal Financial Services | Buy | Target raised to ₹240 from ₹220

Motilal Oswal said Tata Steel delivered a decent performance in Q3FY26, broadly in line with expectations, driven by healthy volumes, though partially offset by muted net sales realisation (NSR) in India. The brokerage noted that combined Ebitda from European operations weakened, mainly due to lower earnings at the Netherlands unit, while UK operating losses remained flat quarter-on-quarter.

 

Looking ahead, Motilal expects Ebitda performance in Europe to improve over the coming quarters, supported by ongoing cost-restructuring initiatives, capacity ramp-up in the Netherlands, and lower fixed costs, which should collectively aid profitability.

 

While acknowledging near-term uncertainties stemming from price volatility, trade barriers such as carbon border adjustment mechanism (CBAM), tariffs, and reduced import quotas, the brokerage remains constructive on the long-term outlook. On the back of a better volume and NSR outlook, Motilal has raised its FY26E earnings estimates—Ebitda by over 2 per cent and profit after tax (PAT) by over 3 per cent—and also inched up FY27E Ebitda by 2 per cent to reflect improving pricing and cost dynamics.  ALSO READ | LIC shares advance 5% after 'very strong results'; Q3 profit rises 17%

JM Financial Institutional Securities | Buy | Target raised to ₹240 from ₹215

The brokerage said Tata Steel’s Ebitda marginally exceeded its estimate. According to analysts, key takeaways from the call are:

• Expected coking coal consumption cost movement in Q4FY26 to be $15 per ton. 
• Indian operations are expected to witness higher NSR to the tune of ₹2,3000/t (leading to improved spreads) while Netherlands NSR to be down EUR33/t in Q4, driven primarily by poor mix; UK to be up GBP5/t 
• Cost takeout plan remains on track with cost savings of ₹8,600 crore achieved in 9MFY26 and ₹3,300 crore in Q3 (full-year guidance for cost optimisations stood at ₹11,500 crore, so the implied cost savings for Q4FY26 stands at ₹2,900 crore).

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