Motilal Oswal has issued a buy rating on Tata Steel with a target price of ₹250 based on its Q4FY26 results. According to Motilal Oswal's research report dated May 17, 2026, Tata Steel's standalone revenue stood at ₹385 billion in Q4FY26, representing growth of 12% year-on-year and 8% quarter-on-quarter. The growth was primarily driven by better domestic volumes and strong net sales realization (NSR) recovery. Steel production reached 5.97 million tonnes with deliveries at 6.2 million tonnes, up 11% YoY and 2% QoQ respectively. As per Motilal Oswal's latest report, the results were in line with their estimates.
As reported by Motilal Oswal, average selling price (ASP) improved by 5% sequentially to ₹62,113 per tonne in Q4FY26, marking a 1% YoY increase. This improvement was driven by strong steel price recovery led by safeguard duty implementation. EBITDA stood at ₹94.7 billion with growth of 36% YoY and 23% QoQ, translating to EBITDA per tonne of ₹15,300 in Q4FY26. The input cost inflation from higher coking coal consumption was fully offset by strong NSR recovery, as reported by the brokerage. According to the latest report, EBITDA per tonne stood at ₹15,300/t in Q4FY26, representing 23% YoY and 20% QoQ growth.
According to Motilal Oswal's analysis, Tata Steel's revenue for FY26 grew 5% YoY to ₹1,397 billion, aided by volume growth of 8% YoY to 22.5 million tonnes. However, this was partially offset by muted NSR growth of 2% YoY. EBITDA for the full year stood at ₹325 billion with growth of 17% YoY, translating to EBITDA per tonne of ₹14,413. Annual profit after tax (APAT) reached ₹172 billion, up 15% YoY in FY26. As per the latest report, APAT stood at ₹48 billion in Q4FY26, showing 29% YoY and 15% QoQ growth.
As reported by Motilal Oswal, at the current market price, Tata Steel is trading at 7.1x EV/EBITDA and 2x P/BV on FY28E estimates. The brokerage has reiterated its buy rating with a sum-of-the-parts (SOTP) based target price of ₹250 on FY28E EPS. The positive outlook is supported by the company's strong operational performance and recovery in steel pricing driven by safeguard duty implementation. According to the latest report, the valuation metrics remain unchanged with the stock trading at 7.1x EV/EBITDA and 2x P/BV on FY28E estimates.
