Tata Steel shares surge 2%, emerges top Nifty gainer on strong Q1 results

Tata Steel Q1 profit jumps 116 percent to Rs 2,077.7 crore

Shares of Tata Steel rose 2 percent to Rs 156 per share on August 4, becoming the top gainer on the Nifty 50 index. The stock moved up after the company reported strong earnings for the April–June quarter (Q1FY26), aided by the Centre’s safeguard duty on certain imported steel products.

So far this year, Tata Steel shares have declined 3 percent, underperforming the Nifty 50 index which has gained 3 percent over the same period.

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For the quarter, Tata Steel reported a 116.5 percent year-on-year jump in consolidated net profit to Rs 2,077.7 crore, compared to Rs 959.6 crore a year ago. The growth was driven by higher net realisations and planned cost-saving measures.

Consolidated revenue, however, fell 2.9 percent year-on-year to Rs 53,178.1 crore. Despite the decline, both profit and revenue were above estimates of Rs 1,786 crore and Rs 51,409 crore, respectively. Sequentially, profit was up nearly 60 percent while revenue dropped 5.4 percent.

Jefferies maintained a “buy” rating on the stock, with a target price of Rs 200 per share. The brokerage noted that Q1 EBITDA rose 11 percent year-on-year and came in 4 percent above their expectations. EBITDA per tonne improved in both India and the Netherlands, while losses narrowed in the UK.

Jefferies expects India margins to come under some pressure in Q2 as spot steel prices are currently 4 percent below the Q1 average. However, they also pointed to signs of recovery, with China’s export hot-rolled coil prices rising 6 percent over the past month. They forecasted a healthy 8 percent compound annual growth in India volumes.

In India, production and deliveries were slightly lower due to maintenance shutdowns at the Jamshedpur and Neelachal Ispat Nigam plants. The company expects operations to normalise in upcoming quarters.

In the UK, Tata Steel’s revenue stood at 536 million pounds, while EBITDA loss narrowed to 41 million pounds from 80 million pounds in Q4FY25. Deliveries were slightly lower at 0.60 million tonnes amid soft demand.

Netherlands operations reported revenue of 1,519 million euros and EBITDA of 64 million euros, significantly higher than the 14 million euros EBITDA posted in Q4FY25. Liquid steel production was 1.70 million tonnes and deliveries were 1.50 million tonnes.

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