Tata stock in focus: Q4 results season is ongoing with many companies reporting their financial performance for the fourth quarter of the financial year, covering the last three months of the reporting period.
Tata Steel, one of the flagship companies of the Tata Group, is yet to post its Q4 results. Ahead of that, the brokerage firm Motilal Oswal is bullish on the Tata stock. Check reasons and the latest target price here.
Tata stock in focus: Motilal Oswal bullish on Tata Steel
The brokerage firm, Motilal Oswal, maintains a ‘Buy’ rating with a revised target price of Rs 250, up from the earlier Rs 240.
The brokerage continues to hold a constructive stance on the company, backed by a strong domestic demand outlook and price support arising from safeguard duty measures.
According to the brokerage, recent steel price hikes have strengthened the domestic business outlook, while the European operations are nearing breakeven levels.
The company’s domestic business is expected to deliver better performance in the near to medium term, supported by improving market conditions.
The brokerage believes the company is well-positioned to capitalise on long-term growth opportunities in the steel sector.
Domestic steel prices have surged after the implementation of the safeguard duty, leading to a sharp decline in imports and a rise in exports.
The company’s capacity expansion plans remain on track and are expected to help it benefit from the improving demand environment.
European operations are also likely to witness better performance, aided by regulatory tailwinds and ongoing cost-saving initiatives.
Further improvement in profitability is expected to come from cost optimisation efforts, softer energy prices, and benefits from the legacy blast furnace shutdown in the UK.
The Tata Group company reported an increase of 722.3 per cent year-on-year (YoY) to Rs 2689 crore in the reporting quarter against Rs 327 crore posted in the same quarter of the previous financial year.
The company’s revenue from operations was at Rs 57,002 crore in the quarter under review against Rs 53,648 crore. This represents a year-on-year increase of 6.3 per cent YOY.
India’s revenues were at Rs 35,725 crore, and EBITDA was Rs 8,291 crore, which translates to a margin of 23%. Crude steel production was up 12% YoY to 6.34 million tons. Improved production led to ‘best-ever quarterly’ deliveries to the tune of 6.04 million tons, up 14% YoY.
Netherlands revenues were €1,354 million, and EBITDA was €55 million. Liquid steel production was 1.68 million tons, and deliveries were 1.40 million tons.
UK revenues were £468 million, and EBITDA loss stood at £63 million. Deliveries stood at 0.52 million tons and were impacted by subdued demand and steady imports.
EBITDA was up 38.9 per cent YoY to come in at Rs 8,199.4 crore in Q3 FY26 against Rs 5,903.3 crore in the same quarter of the previous fiscal. EBITDA margin improved 338 bps YoY to 14.4 per cent in the October-December 2025 period against 11 per cent reported in the year-ago period.
The company’s total income rose to Rs 57,503.49 crore during the reporting quarter from Rs 53,869.33 crore posted by the company in the year-ago period.
Tata Steel group is among the country’s top global steel companies with an annual crude steel capacity of 35 million tonnes per annum.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
