Is Tata Steel heading towards Rs 200? Brokerages turn bullish after Q2 results

Tata Steel Share Price Target: Shares of Tata Steel Ltd gained over 3 per cent on Thursday after the steel major reported a strong set of quarterly numbers for the September quarter (Q2 FY26), led by higher sales volumes in India.

The stock climbed as much as 3.2 per cent to Rs 184 apiece in early trade. However, it later trimmed gains to trade 1.7 per cent higher at Rs 181.5 on the NSE around 11:22 AM.

Tata Steel Q2 performance

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Tata Steel reported a consolidated net profit of Rs 3,102 crore for the quarter ended September 30, 2025, up 3.7 times year-on-year, driven by improved domestic demand and cost efficiencies. Revenue rose 8.9 per cent YoY to Rs 58,689 crore, as per a regulatory filing.

Tata Steel share price target

Morgan Stanley maintained an Overweight rating with a target price of Rs 200, noting that Q2 EBITDA beat both its and consensus estimates. The brokerage remains positive on Tata Steel’s cost-saving initiatives and margin recovery execution.

Jefferies also reiterated a Buy rating with a target price of Rs 200, highlighting that EBITDA rose 20% QoQ (up 56% YoY), led by better-than-expected performance from the India and Netherlands operations. Standalone volumes increased 9% YoY on account of capacity ramp-up, though UK operations saw a wider loss.

CLSA, meanwhile, maintained a Hold rating with a target price of Rs 170. It said Tata Steel’s consolidated adjusted EBITDA of Rs 9,000 crore (up 20% QoQ) was largely in line, as lower realizations were offset by cost reductions. The brokerage added that Tata Steel achieved Rs 5,450 crore in cost savings in the first half of FY26, against its Rs 11,500 crore guidance for 12–18 months.

Brokerage believe Tata Steel’s focus on cost efficiencies, domestic volume growth, and improving European operations will support its profitability in the coming quarters, even as challenges persist in the UK business.