Tata Steel share price touches 52-week high after Q3 results; brokerages raise targets

Tata Steel share price surged nearly 3 per cent on Friday and hit an all-time high of Rs 203 on the BSE. The stock later saw some profit booking. At 10:22 am, Tata Steel was trading at Rs 198.85, up Rs 1.79 or 0.91 per cent.

The rally came after the company announced its December quarter results post market hours on February 6.

What triggered the buying

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Buying interest in the stock increased after several brokerages raised their target prices on Tata Steel. Analysts turned more optimistic following strong year-on-year earnings growth and improving balance sheet metrics.

Q3FY26 earnings snapshot

In the December quarter, Tata Steel reported a sharp 723.1 per cent year-on-year jump in consolidated net profit attributable to owners at Rs 2,688.70 crore. In the same quarter last year, profit stood at Rs 326.64 crore.

Consolidated revenue for the quarter rose around 6 per cent year-on-year to about Rs 57,002 crore, compared with Rs 53,648 crore a year ago. However, revenue declined sequentially from Rs 58,689 crore reported in Q2FY26.

Ebitda for the quarter rose 38.9 per cent year-on-year to Rs 8,199 crore, up from Rs 5,903 crore in the year-ago period.

Read full Q3 Result here: Tata Steel Q3 Results: Tata group steelmaker beats Street estimates with 8x PAT jump

Key drivers of performance

The strong year-on-year performance was driven by higher steel volumes in India, a turnaround in operations in the Netherlands, and planned cost reduction measures across regions.

However, on a sequential basis, net profit declined around 13 per cent from Rs 3,102 crore in Q2FY26, while revenue fell about 3 per cent. This reflected softer realisations and near-term pressure on margins.

Tata Steel share price target 2026

HSBC maintained a Buy rating and raised its target price to Rs 235 from Rs 215. The brokerage said profitability should improve into Q4FY26 and Q1FY27, supported by declining net debt and policy support such as India’s safeguard measures and the EU’s carbon border rules.

Jefferies also maintained a Buy rating and raised its target to Rs 240 from Rs 230. It noted that while Q3 Ebitda declined sequentially, it was still above expectations due to strong India operations. Jefferies expects a sharp sequential improvement as Indian steel prices rise.

JP Morgan retained an Overweight rating and raised its target to Rs 221. It highlighted improving leverage ratios and expects multi-quarter Ebitda expansion as steel prices firm up in India and Europe.

Nomura maintained a Buy rating and raised its target to Rs 220, while CLSA maintained Hold and increased its target to Rs 205.

Citi, however, maintained a Sell rating despite raising its target price to Rs 180, citing valuation concerns.

Morgan Stanley maintained an Overweight rating with a target of Rs 215. It pointed to improving consolidated Ebitda, falling net debt, and strong progress on cost savings.