Tata Steel Shares At 52-Week High After 824% YoY Surge In Net Profit; Buy, Hold Or Sell?

Tata Steel Share Price: Shares of Tata Steel Limited peaked to its 52-week high mark on Monday, February 9, after the company announced 824% year-on-year jump in its consolidated net profit to Rs 2730.37 crore in Q3FY26. The company had reported a 6.2% rise in its net revenue.

Tata Steel shares were trading 0.84% higher at Rs 198.7 per share on BSE with a market capitalisation of Rs 2,48,046.01 crore at 9:45 am. The stock had surged to its 52-week high mark of Rs 203.00 per share on BSE on Monday.

Tata Steel Q3 Result Review

The company's net profit was in line with expectations after rise in deliveries due to favourable steel prices. There was a 12% surge in steel production due to higher output at the Jamshedpur and Kalinganagar facilities. Additionally, the improved production led deliveries also surged around 14% led by strong sales in the domestic market during the quarter under review.

"TATA posted a decent performance in 3QFY26 as anticipated, primarily driven by healthy volume, offset by muted NSR in India. The combined EBITDA in Europe weakened due to muted earnings at the Netherlands operation, while the UK operating loss remained flat QoQ," noted Motilal Oswal inits report.

Tata Steel Share Price Recommendation

The brokerage maintained its buy rating for the stock. Motilal Oswal stated that there can be near-term uncertainties related to price volatility due to trade barriers, the long-term outlook for Tata Steel stock remains strong.

"We raise our FY26E earnings (EBITDA by over 2% and PAT by over 3%), fueled by the better volume and NSR outlook. We also marginally raise our EBITDA for FY27E by 2% to reflect the improved outlook on pricing and costs," added Motilal Oswal in its report.

Tata Steel Share Price Target

Motilal Oswal maintained a 'Buy' rating for Tata Steel stock with a target price of Rs 240 per share, indicating an upside of around 22%. "At CMP, TATA is trading at 7.4x FY27E EV/EBITDA. We reiterate our BUY rating with a revised SoTP-based TP of INR240 on Sep'27E," stated the brokerage in its report.

Tata Steel Q3 Result Recap

Tata Steel's net consolidated profit surged by 824% on a year-on-year basis to Rs 2.730.37 crore in Q3FY26, against Rs 295.49 crore in Q3FY25. The company's net revenue jumped to Rs 57,002 40 crore during the quarter under review, against Rs 53.648.30 crore reported in the year-ago period.Company's earnings per share (EPS) also jumped to Rs 2.16 in Q3FY26 against Rs 026 reported in the year-ago period.

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