Tata Steel delivered a strong Q3FY27 performance, beating estimates on both lines, demonstrating robust operational execution. The company's consolidated EBITDA of ₹105 billion was in-line with expectations but exceeded analyst forecasts, with 18% year-on-year growth and 14% quarter-on-quarter improvement. As reported by ICICI Securities, this performance was supported by higher realisations and improved operating performance, with the company's operational metrics showing positive momentum across key business segments during the quarter.
ICICI Securities has issued a buy rating on Tata Steel with a target price of ₹235 in its research report dated November 08, 2026. According to the brokerage's analysis, the recommendation is based on 7x FY28E EV/EBITDA valuation multiples. The investment thesis centers on the company's strong operational performance and growth prospects across its key markets, which have been further validated by the recent quarterly beat.
ICICI Securities expects H2FY27 performance to be even better, driven by several positive factors. According to the research report, India realisations are projected to increase by ₹3,500-3,600 per tonne quarter-on-quarter, while higher volumes and operating leverage should support growth. However, this will be partially offset by an approximately USD 15 per tonne increase in coking coal costs. The Netherlands operations are expected to benefit from stable DSP operations and higher contract realisations, while UK losses should narrow as excess inventory gradually unwinds with break-even targeted by Q4FY27.
Over the long term, 4.8 million tonnes of NINL expansion, downstream projects and third-party iron ore sales are expected to drive growth for Tata Steel. As reported by ICICI Securities, debt is likely to start tapering in the near term, indicating improved financial health. The brokerage's analysis suggests these strategic initiatives will support the company's growth trajectory and operational efficiency improvements, with the recent quarterly beat reinforcing confidence in the company's execution capabilities.
