Tata Steel (TATA IN) – Q1FY27 Result Update – India anchors earnings; TSN gets a breather – ACCUMULATE
Published on 01 Aug 2026
Tata Steel (TATA) reported an in-line Q1FY27 with continued robust India operating performance aided by higher steel pricing. Volumes grew 9% YoY due to planned maintenance shutdowns at Meramandali and KPO, while a sharp recovery in domestic steel prices drove NSR higher offsetting the impact of higher coking coal costs. As a result, TSI delivered EBITDA/t of INR17.8k. Europe remained a mixed bag-Tata Steel UK (TSUK) continued to improve with losses narrowing on better pricing and restructuring benefits, while Tata Steel Netherlands (TSN) remained weak due to the temporary shutdown of the 1.4mtpa Direct Sheet Plant (DSP), higher raw material costs and wage revisions. At CMP, the stock is trading at 6.8x/6.6x EV of FY27/28E EBITDA. We maintain ‘Accumulate’ rating with revised TP of INR 212 (INR 226 earlier) valuing at 7.5x EV/TSI EBITDA and 5x TSE EBITDA.
