Tata Steel up 13% in September, outperforms market; stock nears record high

Tata Steel shares hit a fresh 52-week high of ₹174.35 today, trading close to its all-time high level of ₹184.60, touched on June 18, 2024.

Tata Steel share price today

 

Tata Steel share price hit a fresh 52-week high of ₹174.35, gaining 1 per cent on the BSE in Wednesday's intraday trade, on a healthy business outlook. Stock price of the Tata Group company inched towards its all-time high level of ₹184.60, which it touched on June 18, 2024.

 

Thus far in the month of September 2025, Tata Steel shares have outperformed the market by surging 13 per cent. In comparison, the BSE Sensex was up 2.7 per cent while the BSE Metal index rallied 11 per cent during the period.

Favorable domestic business outlook

 

India's steel demand is projected to grow ~8-10 per cent over FY26-27, backed by a robust demand environment, policy support, and ongoing recovery in industry fundamentals. To protect against rising imports, the Indian government imposed a 12-per cent safeguard duty on flat steel products, supporting domestic prices.

 

 

According to analysts at Motilal Oswal Financial Services, Tata Steel is well-positioned to benefit from India's strong domestic growth story through its capacity expansion and product diversification strategies. Market sentiment for H2FY26, too, points to a gradual price recovery, muted costs (especially coking coal prices), and demand tailwinds, the brokerage said.

 

It added: Tata Steel is one of the largest players in India's steel sector and is set to benefit from improving steel price realisations, operating efficiencies, and the strong domestic demand outlook. The implementation of the safeguard duty is expected to help domestic steel makers achieve better realisation.

 

"While near-term challenges persist due to global uncertainty around tariff escalations, the long-term outlook for Tata Steel remains strong. The Indian business is expected to continue its strong performance, and an improvement in the European business performance is likely to support overall earnings," MOFL said in a stock update report. It, however, has a 'Neutral' rating on the stock with an SOTP-based target price of ₹180 per share, based on FY27 earnings estimate.

 

Meanwhile, Tata Steel remains JM Financial Institutional Securities' top stock picks in the metal space with a target price of ₹185 per share, due to its diversified portfolio and operational scale.

 

According to the broking firm, Indian steel companies are likely to report a subdued second quarter (Q2FY26), as softer domestic prices weigh on margins.

 

"However, going forward into the second half (H2) of the fiscal year, we anticipate a rebound in spreads, driven by stronger Chinese domestic prices, tighter safeguard duty enforcement, improved visibility on import duties, and seasonally stronger consumption. These factors are expected to underpin recovery in margins for both ferrous and non-ferrous metals," JM Financial said.

 

Tata Steel outlook

 

For FY2025-26, Tata Steel plans a capital expenditure of ~₹15,000 crore, with nearly 75 per cent allocated in India. Key investments include the completion of TSK expansion, the Ludhiana EAF project, and initiatives to improve asset reliability and efficiency. In Europe, the Company will continue capital deployment to transition the Port Talbot facility to low-emission steelmaking, supported by £500 million in government funding, with design and regulatory approvals progressing. Efforts in the Netherlands focus on securing financial and policy support for decarbonisation and environmental initiatives.

 

Tata Steel is targeting ₹11,500 crore in cost savings during FY2025-26, with ₹4,000 crore expected from India through improvements in operating KPIs, workforce productivity, and supply chain efficiency. The UK business aims to reduce fixed costs from £995 million in FY2023-24 to £540 million in FY2025-26, while Tata Steel Nederland targets €500 million in savings in FY2025-26 through volume growth and operational improvements, the company said in its FY25 annual report.