Tata Steel shares gain after Nomura initiates coverage with buy rating, Check out target price

Tata Steel Share Price Target: Indian multinational steel company Tata Steel shares edged up 1.52 per cent to Rs 175.40 on Thursday, rising Rs 2.62 from the previous close of Rs 172.78, after global brokerage Nomura initiated coverage on the steelmaker with a bullish outlook.

The stock has touched a 52-week high of Rs 177.82 on 9 October and a low of Rs 122.62 on 13 January, giving the company a market capitalisation of Rs 2.18 trillion. The tata stock is up 23 per cent in past 6 months.

Tata Steel Share Price Target

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Brokerage firm Nomura began coverage on Tata Steel with a buy rating and a target price of Rs 215, implying a potential upside of 24 per cent from Tuesday’s close of Rs 173. The brokerage’s optimism is based on five key factors—robust domestic demand, higher utilisation at the Kalinganagar plant, a turnaround in European operations by FY26, long-term cost benefits from lower iron ore prices post-FY30, and attractive valuations.

The brokerage noted that Tata Steel is well-placed to benefit from India’s infrastructure growth and rising steel consumption. Improved operational efficiency at core facilities is also expected to drive margins further.

Strong Q1 FY26 Performance

In the June quarter, Tata Steel reported consolidated net profit of Rs 2,007 crore, marking a sharp 92 per cent quarter-on-quarter and 116 per cent year-on-year increase. However, revenue from operations slipped 5 per cent sequentially to Rs 53,178 crore, largely due to planned maintenance at the Jamshedpur blast furnace.

Despite the revenue dip, EBITDA rose 15 per cent QoQ to Rs 7,456 crore, while EBITDA per tonne jumped 34 per cent to Rs 10,470, highlighting strong operational leverage. Net debt eased to Rs 84,800 crore, strengthening the balance sheet as the company prepares for a European turnaround in FY26.