Tata Steel Share Price Today Surges 5% on Q4 Earnings, FY26 Growth Outlook — Buy or Hold?

The shares of Tata Steel surged 5% on Wednesday as the company showcased a strong performance in the forth quarter of the financial year 2024-25, driven by seasonally higher volumes and a marginal rise in realisations.

The company's consolidated net profit in Q4FY24 doubled to Rs 1,201 crore on the back of improved cost efficiencies, lower raw material costs and higher other income.

Tata Steel Shares: Buy Or Hold?

Emkay Global gave the Tata Steel shares a 'BUY' rating for the shares of Tata Steel in their report.

Tata Steel Growth Outlook For FY26

Tata Steel posted a consolidated adjusted EBITDA of Rs 65 billion and declined 9.1% sequentially due to lower realisation which was partially offset by higher deliveries across regions and lower coking coal costs in India and the Netherlands.

The key focus areas for the company in the fourth quarter of FY25 included targeted cost takeout of Rs 115 billion globally (Rs 40 billion in India), progress on Europe's EAF transition, NINL expansion, and planned capex of Rs 150 billion (75% in India).

The company has received planning permission for the EAF and construction activity to begin by July. The Netherlands government has also updated its Parliament about its discussions related to the project, with TATA and the European Commission.

Additionally, engineering work for the next phase of expansion in NINL is currently ongoing, and the regulatory environmental clearance process is also
under way.

The UK operations of the firm will break even in the upcoming quarters, while Europe operations are expected to break even in the first quarter itself.

The management also expects 1.5mt volume growth for FY26, mainly driven by the KPO ramp-up.

Tata Steel: Share Price Target

Emkay Global lowered its FY26 EBITDA estimates by 3%, reflecting volume guidance below its earlier expectations. Additionally, it deferred NINL capex by one year as it is still in the early stages of the approval process.

The brokerage maintained a 'BUY' rating with an unchanged target price of Rs 185.

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