Tata Steel (TATA IN) – Q2FY27 Result Update – Strong India, recovering TSN; UK struggles – ACCUMULATE
Published on 09 Nov 2026
Tata Steel (TATA) reported a strong Q2FY27, with consolidated EBITDA growing 18% YoY to INR105.3bn, led by robust India (TSI) performance and a sharp recovery in the Netherlands (TSN) following the restart of its Direct Sheet Plant (DSP) in August. TSI volumes grew 8% YoY to 5.98mt on drawdown of inventory in seasonally weak monsoon quarter, while benefit of Auto contracts negated longs weakness driving EBITDA to INR100bn (up 23% YoY). At CMP, the stock is trading at 6.3x/5.8x EV of FY28/29E EBITDA. We maintain ‘Accumulate’ rating with revised TP of INR 215 (INR 209 earlier) valuing at 7.5x EV/TSI EBITDA and 5x TSE EBITDA.
